The Council fo Economic Advisors showed outright disregard for the purported benefits of Bitcoin and other cryptocurrencies in the President’s Economic Report released on Tuesday. 

The report claimed that cryptocurrencies lack fundamental value, and also do not “act as effective alternatives to money.”

Crypto: Expectations VS Reality

The White House report included two dedicated sections pertaining to digital assets: one titled “The Perceived Appeal of Crypto Assets,” and the other titled “The Reality of Crypto Assets.”

The first section acknowledges some of the most commonly cited use cases of Bitcoin: its potential as an inflation hedge, ability to enable fast digital payments, and power to increase financial inclusion. However, the latter section disputed all of those claims:

“As inflation increased globally in the second half of 2021 and in 2022, the prices of crypto assets collapsed, proving them to be, at best, an ineffective inflation hedge,” stated the report. 

Indeed, Bitcoin collapsed to then yearly lows in June 2022 precisely after the BIS announced peak inflation figures of 9.1% that month. However, the Federal Reserve was also hiking its target interest rate throughout the year to quell said inflation, which caused a significant drawdown in bonds, stocks, and crypto alike. 

The report also challenged Bitcoin’s use case as an alternative money, criticizing its ability to effectively serve as a store of value, medium of exchange, or unit of account. This was in line with criticisms presented by central bankers across the world, from former Fed chair Ben Bernanke to Sweden’s central bank. 

Furthermore, the report