US Congress changes its mind about cryptocurrencies

Congress hearings devoted to cryptocurrencies and took place on Wednesday during the previous week seemed to be a disaster, as the positions demonstrated highly critical views. As it turns out, not everyone in Congress is so gloomy about crypto.

Joint Economic Committee of the US Congress released its economic report for 2018 with the chapter devoted to cryptocurrencies and blockchain technologies. Strange as it may seem, the authors of the report sound optimistic the underlying technology and the effect it may produce on the economy.  They compare digital currencies with the early days if the Internet, when people started to realize the benefits of new technology and discover the ways, it may change their lives.

"The buzz surrounding digital currencies resembles the internet excitement in the late 1990s when people recognized technology companies could change the world. Many internet companies launched and their valuations took off in short order. Many failed, but a few succeeded spectacularly and challenged the conventional ways of doing business."

The authors of the report tried to be impartial and outlined both advantages and deficiencies of the digital currencies. All in all, they are treated like a new reality that cannot be either reversed or ignored.

"Whether digital currencies hold their value will depend upon whether they offer benefits in terms of ease of use and accessibility, low transaction costs, security, anonymity, and other considerations in sufficient degree relative to conventional currencies and other stores of value such as gold."