Congressman Implies Facebook Balance Is A "Shitcoin"

Congressman Warren Davidson really wants to talk about shitcoins.

The Ohio representative made an effort on Wednesday to clarify this during a congressional hearing on the potential ramifications of Facebook's proposed Libra digital currency project. During the hearing, Davidson highlighted all the perceived benefits of bitcoin and explained how "shitcoin" – as he suggested, Libra – was fundamentally different.

In questioning Meltem DemirorsDavidson, director of CoinShares strategy, first introduced to his colleagues, probably confused, the crypto term of art.

"A lot of people in this space will use a sentence that you may be familiar with:" there is bitcoin, then shitcoin, "noted the congressman at around 2:49:40 in the video below. "Do you know that phrase, and what could people mean by that?"

"I am," replied Demirors.

Basically, a so-called shitcoin is an altcoin – that is, something other than bitcoin – perceived as worthless. The Bitcoin maximalists believe that every crypto-currency that is not bitcoin is a shitcoin, while others reserve the pejorative term for that of truly the worst of the worst.

This brings us back to Libra and its difference with Bitcoin. Davidson pointed out that no central authority can filter bitcoin transactions or unilaterally dilute the value, contrary to the digital currency proposed by Facebook.

"All of these features are different from most things that people commonly call" shitcoin, "Davidson continued. "Because the value can be distorted by a central authority, the badets of the population are therefore really threatened."

Notably, Libra will most certainly be governed by a central authority – the Libra Association – which has the power to control supply. In other words, Davidson seemed to specifically frame the definition of shitcoin to include Libra.

It's not hard to imagine the Congressman's opinions on the proposed digital currency and, unfortunately, for Facebook, they do not look good.