The Two Sides Of The Bitcoin Debate Are Saying The Same Thing

The Two Sides Of The Bitcoin Debate Are Saying The Same Thing

The debate as to how bitcoin is going to navigate the path to mainstream acceptance and widespread use is not quite as foggy as it once was but – if the last few weeks have told us anything – then the fog may be lifting but there are still plenty of twists and turns ahead. The situation in China is far from abating and is likely to continue to worsen near term.

According to recent reports, the Chinese government is now taking steps to stop Chinese bitcoin executives from leaving the country (exactly why remains to be seen – there's a good chance it's something to do with policymakers' expectations that it's the execs that have the largest holdings) and reports suggesting that we'll likely see some sort of mining ban remain in place.

Jamie Dimon compounded the action with his statement on bitcoin's fraudulent status.

Today, CNBC has reported on the comments of Rainer Michael Preiss, executive director at Taurus Wealth Advisors.

His opinion on the matter-

“Anyone that runs a very large bank will right now be very understandably afraid of bitcoin and the blockchain.”

His reasons for it:

"The concerns are about the fractional reserve banking system, and the balance sheet of the Federal Reserve at $4.5 trillion, where the Fed officially refuses an audit," he said. "On the other hand, on the bitcoin blockchain, you have an audit everyday because it's open-sourced."

So he has rooted his argument in the transparency that bitcoin allows and the inconvenience of this transparency for a large entity like the fed. That sort of falls completely in contrast to the banks' argument for a ban – that bitcoin doesn’t offer the transparency and auditability to ensure avoidance of fraud.

So that's two sides of the equation, former saying that the other is afraid of transparency issues and the later saying that it's concerned about transparency issues and what that might mean for the general public.

Author : Jack Dean

Jack has worked in the cryptocurrency industry for 5 years now as a reporter. His experience is predominately in banking, while he also has a keen interest in the forex world. His daily output is read by thousands of readers globally.