Government officials from all around the world are constantly looking for ways to put Bitcoin down simply due to the fact they don’t understand it, thinking it’s evil. This time, the US House Financial Services Committee (HFSC) has issued a warning, stating that Bitcoin is being used by domestic terrorists, Nazis and white supremacists to fund their activities. Once more, the US government has proved that its members of congress know nothing about Bitcoin – a rather worrying sign.
Irrational Fears Creeping In
As we’ve seen time, time and time again, irrational fear drives a lot of congress members to say and do crazy things. This time it’s the turn of Congressman Brad Sherman from California (D) to spread FUD and show off that he knows nothing about Bitcoin. Talking in congress about Bitcoin and its use by people in the United States, Sherman said:
if it works for Hamas, it will work for the Nazis, too.
While yes, it’s true that Hamas are accepting donations in Bitcoin to help their cause, it’s actually better than them accepting fiat cash. Bitcoin is completely traceable and thanks to the KYC regulations in place, the government can place alerts and bans on suspicious people. If an exchange notices this person receiving Bitcoin and they try to withdraw it, they can notify the government and freeze the transaction. On the other hand, cash can flow freely around the world, letting terrorists fund their activities completely unchecked.
It’s Better If Terrorists Use Bitcoin
While people think that hearing about Bitcoin being used by terrorists is a bad thing, it’s actually quite the opposite. If more terrorists use Bitcoin over cash, the relevant authorities can step in and shut down their accounts before they can cash out and spend the money. So, if more terrorists start using Bitcoin, the government could crack down on the funding of these groups.
Sherman has shown his ignorance and complete lack of knowledge when it comes to Bitcoin and the blockchain world. Perhaps before making any more statements on Bitcoin, Sherman should educate himself. Unless he is directly trying to finance terrorism and Bitcoin makes it more likely that he will get caught…
