Pompliano Argues ETH Is Closer To Fiat Than Crypto
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Anthony Pompliano, the co-founder and partner at Morgan Creek Digital has just had stern words with the Ethereum community for saying that its cryptocurrency, ETH, is money. Speaking on the Off-chain page on Substack, Pompliano said that ETH is no different than any Fiat currency because it shares specific characteristics with the asset class that make it more similar to Fiat than crypto.
“The issue is that Ether is no different than a fiat currency. Fiat currencies have (a) no fixed supply, (b) an inflationary supply schedule, and (c) monetary policy decisions that are decided by a small group of individuals.”
He further went on to say that the cryptocurrency’s monetary policy is based on time to time issuance of the assets as there is not a limited supply. This makes it extremely similar to that of the United States dollar which is continuously being pumped into the economy. He adds, saying this means that it has no store of value either.
“The good news for those that believe in ETH as money is that every change to the supply schedule so far has REDUCED the new issuance rate, but the bad news is that the option is always available to increase the new issuance rate. This is similar to our current fiat monetary policies, where the decision makers can increase or decrease the production of new money coming into the system.”