Morgan Housel, a partner in the venture capital firm Collaborative Fund, said so The government can actually control people’s digital assets.
In a podcast episode with Anthony Pompliano, co-founder of Morgan Creek Digital, Housel mentioned that some arguments for cryptocurrencies are illogical.
“The idea that the government can’t touch your cryptocurrencies […]Of course you can, “he explained as an example, noting that the industry views assets as” hands-free “, beyond the reach of the long arm of the law.
Housel referred to the gold seizure nearly 100 years ago to back up his point. In 1933 while pondered on the rise of the Great DepressionPresident Franklin D. Roosevelt (FDR) urged citizens to exchange their gold for cash after allowing the US government to confiscate the precious metal from the people, according to an article by the Mises Institute.
“They did this to control the money supply during the Depression.” Housel said. “I don’t think this will happen, but could something happen to cryptocurrencies?”
“If tomorrow the government issues an ordinance that says, ‘If you own cryptocurrencies, you will go to jail’, […] that would of course affect the price “he added, referring to his statement as hypothetical, not predictive.
“The government has handcuffs and guns, they can do whatever they want with them,” he added jokingly.
However, Housel is not an anti-crypto. He remains intrigued by them, although it is true that he doesn’t own any and has few opinions about the asset class. “Of course it’s fascinating,” he said of cryptocurrencies. “Something that obviously looked like a bubble in 2010 has become commonplace,” he added.
Cryptocurrencies have become even more common in 2020 amid the economic recession sparked by COVID-19, as traditional financial players like Paul Tudor Jones entered the asset class.