Peter Switzer, a prominent financial and business commentator from Australia, has recently called out for the ban of the largest crypto asset of the world, Bitcoin. According to Switzer, known as a an award-winning journalist and owner of the Switzer Financial Group, BTC should be outlawed from the country.
Often, Switzer publishes articles on his site and sends them via newsletters to his followers. Today, he took a swing at Bitcoin. After telling CNBC recently that all cryptos should be “shut down”, Switzer affirmed that there is no need for Bitcoin.
Why? Because it is too volatile and used primarily for speculative reasons. According to him, there is some value in digital payments, but they need to be backed on currencies like the dollar, which is backed by the U. S. government, not by something as Bitcoin.
According to him, Bitcoin is really not much more than a way for inexperienced investors to lose their money because cryptos are unnecessary, risky and its cons far outweigh all the pros.
Because of all this, he believes that BTC should be banned and that all “imitators” (AKA other cryptos) should go down with it.
Bans Often Make Bitcoin Black Market Grow
The truth is that it is simply not so easy to effectively ban Bitcoin. In most of the countries in which Bitcoin was already banned, such as India and China, the market tends to be driven underground. This is obviously not good. Bitcoin has several legitimate uses, so driving it underground is pretty much a horrible idea.
In a black market, people have to pay more for Bitcoin and it is more likely to be bought only to be used in illegal activities. Since there is no way to unplug BTC from your country, illegal trading will continue for as long as it is needed by the people who want to trade it.
It is also important to remember that several banks are also involved in money laundering and illegal activities. Bitcoin is far from the only tool used by criminals.
Recently, the Commonwealth Bank of Australia has decided to pay $530 million USD in order to settle a money-laundering suit. Other important banks such as JP Morgan, Commerzbank, HSBC and others are also responsible for enabling money laundering.
He Got The Idea To Ban Bitcoin From The TV
Curiously, it looks like Switzer got his idea from a TV show. He was recently watching an episode of the U. S. TV series Billions and one of the episodes called his attention.
In one episode, a hedge fund manager sets up an elaborate insider trading scheme and wants to be paid only in BTC because it would not be detected by other regulators. According to him, it was partly this depiction of Bitcoin being used for a crime that got him riled up.
We just have to agree that this is kind of lame, right? TV shows are often not very accurate, so it doesn’t help him a lot that he got his idea from Billions. In fact, Bitcoin is pretty much traceable, so he was not completely right in affirming that a criminal could securely use it to do illegal activities.