By CCN Markets: Cameron Winklevoss teetered on sounding political Sunday, tweeting about Bitcoin, emerging markets and humanity.
Bitcoin is going to disrupt gold, but it will also disrupt any volatile emerging market that doesn’t put the welfare of its citizens first and foremost.
— Cameron Winklevoss (@winklevoss) August 18, 2019
The co-founder of Gemini followed that tweet up with this one:
Ever wonder how Bitcoin impacts government policy? Check out this paper co-authored by @maxraskin Spoiler: it provides a healthy checks and balances that benefits both citizens and government!https://t.co/FPojShAgXA
— Cameron Winklevoss (@winklevoss) August 18, 2019
The tweets come as geopolitical tensions continue to weigh on financial markets. There is a train of thought among financial players about cryptos and periods of emerging market stress. Because cryptocurrencies like Bitcoin are a store of value, they are expected to rise during these periods.
Does bitcoin save citizens?
In the paper, (you must download it) Winklevoss referred to in his tweet, the authors state:
“Our analysis reveals that a private digital currency improves citizen welfare and encourages local investment. Moreover, the government finds permitting the private digital currency incentive compatible.”
Their findings indicate that private digital currency helps people “achieve gains from diversification.” That’s because of the existence of the private digital currency disciplines monetary policy.”
“In turn, that diversification and disciplined monetary policy encourages the citizen to increase local investment. The increased local investment then benefits the government via taxation so that even a selfish government prefers permitting rather than prohibiting the private digital currency.”
Winklevoss leaves us to our own devices
By not naming the countries he was referring to, Winklevoss leaves us to figure out the specifics.
We do know that protests in Hong Kong over an extradition bill have been going on for more than 10 weeks. They’ve gained international attention as the world watches the protesters go up against the police.
Venezuelans continue to suffer due to that country’s failed economy. A result was a record number of Venezuelan Bolivars being exchanged for Bitcoin at the beginning of August. The International Monetary Fund (IMF) projected that Venezuela will experience the world’s highest inflation rate in 2019.
The Argentine peso (ARS) collapsed 30 percent in a matter of minutes yesterday while the stock market caved 48 percent before recovering, CCN reported.
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