If Bitcoin is just an investment, then it's like the government playing Blackjack.
Kinzinger argues that, given the current status and volatility of the crypto market, this apparently sounds just like the government using public money to boost prices and help crypto investors sell their coins for profit.
"One of my concerns with the idea of making it part of a strategic reserve of currencies is: what does that really mean? Are we going to use confiscated Bitcoin, for example? I think that's great. No problem. But won't we end up, in the future, using American taxpayer money to continue investing in these cryptocurrencies, driving their prices up so that others can sell them for profit?", he stated.
For Kinzinger, if we are talking about Bitcoin merely as an investment vehicle, then institutional adoption makes no sense, as it would just be like the government playing Blackjack in a casino.
"Because, in the end, if the taxpayer ends up with the losses and those with money walk away with profits, that's a big problem. That is my concern. I think that, as a global community, as investors, and as a country, we need to seriously reflect: what really backs a cryptocurrency? Is it being used for what it was created for, or has it turned into just an investment vehicle? Because, if it’s just an investment vehicle, it's like playing blackjack in a casino," he highlighted.
Despite his concerns about the U.S. Bitcoin reserve, Kinzinger emphasizes that this does not apply to initiatives involving stablecoins, which have backing and can even surpass Bitcoin, as is the case in Brazil where 90% of the cryptocurrency market is dominated by transactions with stablecoins, according to the Central Bank of Brazil.
"Stablecoins, for me, are something different. They may have more real value than Bitcoin or the so-called memecoins, precisely because they are backed by something concrete", he revealed.
