Ethereum co-founder Vitalik Buterin has voiced concerns about the dangers of voting for political candidates solely based on their “pro-crypto” stance.
In a recent blog post, Buterin said that the game of politics is far more intricate than simply determining the winner of an election. He pointed out that even authoritarian governments like Russia have shown a willingness to embrace cryptocurrencies.
Buterin’s warning comes at a time when former US President Donald Trump, who has positioned himself as a pro-crypto candidate, is rallying members of his party at the Republican National Convention in Milwaukee.
Moreover, venture capitalists and crypto advocates Marc Andreessen and Ben Horowitz recently announced their plans to make significant donations to political action committees supporting Trump’s campaign.
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Crypto’s Rising Influence in Politics
The influence of the crypto industry in politics has been increasing, as evident through the rise of super PACs. Fairshake, a super PAC supported by leading crypto companies, has become one of the top-spending PACs in the current election cycle.
Buterin highlighted the need to be cautious of a particular style of being “crypto-friendly” that is common among authoritarian governments. He drew attention to Russia as an example, given his Russian background and the fact that he built Ethereum at a young age.
He expressed concerns that politicians might manipulate the “pro-crypto” narrative to gain support without genuinely understanding the complexities and implications of the technology.
“In particular, by publicly giving the impression that you support ‘pro-crypto’ candidates just because they are ‘pro-crypto’, you are helping to create an incentive gradient where politicians come to understand that all they need to get your support is to support ‘crypto,” Buterin said.
Tesla CEO Elon Musk, venture capitalist Peter Thiel, and crypto leaders such as Tyler and Cameron Winklevoss have all expressed their support for the former president.
This comes as Trump’s bullish comments on crypto, his acceptance of digital currency donations, and his commitment to defend the rights of self-custody have resonated with some in the crypto community.
Bitcoin and crypto more generally perfectly aligns with my ideological priors which just happen to be libertarian/conservative values, and it’s not a coincidence that the Republicans have embraced it. Their disclosed crypto platform is entirely consistent with those values
I am…
— nic carter (@nic__carter) July 17, 2024
Charles Hoskinson Hits Back Against Buterin’s Viewpoint
Charles Hoskinson, co-founder of Input Output Global and the Cardano blockchain ecosystem, has publicly disagreed with Buterin’s advice, advocating for a single-issue voting strategy centered around supporting pro-crypto candidates.
Hoskinson believes that making crypto a decisive voting issue will deter politicians from taking actions that could harm the industry. He noted that the Biden administration has been perceived as less favorable towards cryptocurrencies.
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Under President Biden, the SEC has intensified its regulatory actions in the crypto sector, resulting in increased penalties and legal enforcement against crypto companies.
“Politics is a game of cause and effect. If politicians understand that bullying and harassing our industry translates to lost elections, then suddenly, they avoid doing that. It’s not complex nor should invent massive cognitive hierarchies to excuse one’s personal distaste of particular people,” he said.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
