Key Takeaways
- Sen. Cynthia Lummis instructed Fox Information she saves Bitcoin and spends {dollars}.
- She cited inflation and Bitcoin’s fastened provide as causes for her technique.
- Lummis’ stance aligns with Gresham’s Legislation on foreign money circulation.
Whereas attending Bitcoin Traders Week in New York Metropolis, Sen. Cynthia Lummis (R-WY) visited the Bitcoin-themed PubKey bar.
Nevertheless, when requested by Fox Information host Maria Bartiromo why she paid in money as an alternative of Bitcoin, Lummis responded:
I spend {dollars} and save Bitcoin. Bitcoin is an asset that’s rising in worth.
Inflationary insurance policies
Lummis elaborated on her reasoning, citing the U.S. Federal Reserve’s inflationary insurance policies:
The U.S. greenback is at all times declining by design. The Fed tries to maintain inflation at 2%, however they will’t. In the meantime, Bitcoin is scarce—solely 21 million will ever exist.
Gresham’s Legislation
Her rationalization aligns with Gresham’s Legislation, which suggests that folks hoard stronger currencies and spend weaker ones.
Lummis, a long-time Bitcoin holder since 2013, beforehand disclosed proudly owning 5 BTC and making further purchases over time.
Strategic strategy
Not like former President Donald Trump, who used Bitcoin to purchase drinks throughout his personal PubKey go to in 2023, Lummis has taken a extra strategic strategy.
She has additionally mentioned the concept of a Bitcoin reserve invoice, advocating for Bitcoin’s long-term stability and worth appreciation.