White House Blasts Crypto, Says They Have No Fundamental Value

The White House opened fire at the cryptocurrencies, saying they have no fundamental value, according to Decrypt.

The 513-page economic report, named “The 2023 Economic Report of the President,” which focused on the negative aspects of digital assets, said they do not act as an effective alternative to fiat money, improve financial inclusion, or make payments more efficient.

The report attributed the non-fundamental value of crypto assets to the securities because of the lack of disclosure surrounding crypto assets.

“Indeed, crypto assets to date do not appear to offer investments with any fundamental value, nor do they act as an effective alternative to fiat money, improve financial inclusion, or make payments more efficient. Instead, their innovation has been mostly about creating artificial scarcity in order to support crypto assets’ prices,” the White House noted.

The report pointed out that crypto assets lack basic economic principles, which have been learned in economics and centuries over centuries, unlike what their advocates claim that crypto assets are a revolutionary innovation, underlining that their inadequate design is destructive for investors and consumers.

It also criticized the crypto costs, claiming that they badly affected consumers, the financial system, and even the physical environment, adding: “Their innovation has been mostly about creating artificial scarcity in order to support crypto assets’ prices.”

For the blockchain, the White House noted that blockchain technology highly contributed to the growth of digital assets financially which had proven later that it is highly volatile and subject to fraud.

The report consists of several chapters coverings sectors related to the US economy like the rise of women in the labor force, foreign investment, climate change, education, and imported goods but the authors dedicated Chapter 8 to digital assets.