Jonathan Hamel, who says he has been part of bitcoin’s community since 2013, has intentionally misled Canada’s parliament in a crypto hearing at the Standing Committee on Finance.
Prior to his witness testimony in front of lawmakers, Hamel publicly requested donations to say “Bcash is a scam.”
He did receive around $8 worth of bitcoin, with Hamel further publicly stating before testimony that he was long on bitcoin and he was going to portray a picture of bitcoin is legitimate while all other coins are a scam.
He told parliament: “Other cryptocurrencies are downright scams, like Bcash.”
Bcash is a shortened version of Bitcoin Cash used primarily by Bitcoin Core supporters. While Bitcoin Cash is a chain-split fork of bitcoin that arose after a long, initially technical then political, debate on how to address scalability.
No one can really say either the approach of bitcoin or bitcoin cash is correct because neither has been tried before.
The Bitcoin Cash approach relies on Moore’s law of tech advances, which has applied so far but might perhaps no longer apply at some point.
The Bitcoin Core approach, on the other hand, effectively ignores Moore’s law, keeping data demands at a very small level with no plan at this stage to increase it.
That means it can not currently process as many transactions as Bitcoin Cash or as timely and cheaply, with further protocols proposed to address it.
That genuine split in difference of opinion led to two coins. What is now known as bitcoin, sometimes called as Bitcoin Core because it relies on only one reference client with that name, and Bitcoin Cash.
Both share an identical history and an identical amount of coins, ownership, holders etc., up to August the 1st 2017. With both then having their own network of nodes, miners and their own history thereafter.
The fact the above is possible is what gives public blockchain currencies the title of the people’s money because they are in charge and can at any time split if they disagree with the direction of a minority or majority either because of genuine disputes or because they think they are exerting too much control or for any reason.
As such, there is no real difference whatever between bitcoin cash and bitcoin. Therefore, as Hamel is aware of the above background we’d think, he intentionally misled at a parliamentary session where such points as “you can not touch a bitcoin” were raised.
That suggests the audience had little, if any information at all, about much of these new innovations. Something Hamel would have known and therefore something that makes the misrepresentation even more serious.
That’s especially the case because there are indeed outright scams, such as allegedly Bitconnect which has/had a pyramid like distribution of funds that seemingly come from no where.
Hamel thus intentionally clouded judgment and, in our view, confused already complex matters in the mind of lawmakers. That’s especially the case as he said, based on a pre-prepared speech, “downright scam” rather than just scam.
More worryingly, Hamel says he is “a member on the Financial Innovation Committee of L’Autorité des Marchés Financiers (Québec),” which is the FCA version of Canada’s biggest financial regulator as far as this space is concerned.
We find it very troubling that FCA listens to an individual who is quite unknown in this space, like Hamel, and who appears to specialize in consulting work.
His stunt might well be an attempt to raise his own publicity and thus his own consulting business, at the expense, we think, of all in this space, including bitcoin, cryptocurrencies more widely, parliament itself, the great Canadian public, and citizens of the entire world since this is all global.
Regulators especially need to be aware that they can be easily confused or misled by individuals who might profess to have expertise or be professional particularly because much of all this innovation is new.
We greatly hope, therefore, individuals like Hamel have not clouded their judgment when it comes to innovative new fundraising methods, such as ICOs, which the Bitcoin Core platform can not offer but ethereum and other platforms can.
Finally, misleading parliament is a serious offence. As such Hamel, in our view, should be relieved of all his positions that may in any way affect the work of regulators or lawmakers.