Corbyn’s strong arm and Shadow Home Secretary has come out against bitcoin in an interview that says labor would curb cryptocurrencies if they were elected.
“One of the problems with Bitcoin is the extent to which it is just a gigantic Ponzi scheme,” Abbott said before further adding:
“If everyone took their Bitcoin money and tried to buy a new car all at once the whole thing would collapse. So, we are worried about the extent to which Bitcoin is a Ponzi scheme.”
The frontbencher appears to be around five years behind with her talking points because if everyone took all their money off the stock market, or off the pound, then they would too collapse.
However, unlike in an actual ponzi scheme, neither in bitcoin nor in the stock market is all the money being handed over to one individual or group who can go spend it as he pleases. Instead, one is buying assets, usually from many others who are selling them.
But at least she has clarified labor’s position because we were wondering what approach they would take and whether we should back them. The answer is now clearly no.
“Labour overall thinks it’s important to have proper regulation of financial services,” Abbott said. “It was poor regulation of financial services which led to the 2008 crash and obviously regulating Bitcoin would be part of that.”
Bitcoin was invented as a direct response to the then labor chancellor bailing out the banks which went bust in part because of continued monetary mismanagement and money printing from commercial banks and central banks.
The retirement age 64 year old, however, clearly doesn’t know much about it and seems to be going off only some brief headline she might have read somewhere.
“I think the people best placed to resolve some of the problems around Bitcoin will actually be people in the Treasury and people in the banking sector.”
She wants banks to regulate bitcoin? How on earth is this woman in parliament? Has she lost her head or does she simply have no clue whatever what on earth she’s talking about?
Yet somehow she knows what to do about something she doesn’t even know what it is! Our democracy, men, our democracy. Who we vote for now? The Digerati.