Who is Cynthia Lummis?
Cynthia Lummis is a former US congresswoman, recently elected to the US Senate as the first female representative for Wyoming in the US elections 2020.
She beat her Democratic party opponent Merav Ben-David with over 70% of the votes, in a triumph that is seen as good news for crypto enthusiasts.
Lummis is a Bitcoin investor since 2013 and adores the milestones reached by Wyoming state in its cryptocurrency uptake. She has publicly vowed to defend it against centralization attempts from the Federal Reserve.
AWESOME NEWS for #crypto folks from the crazy US election tonight—@CynthiaLummis won #Wyoming’s US Senate seat!! The US Senate now has an unabashed #bitcoin supporter & HODLer (since 2013) among its ranks!! CONGRATS Cynthia! @willcole @CynthiaMLummis 🤠🚀🔥 pic.twitter.com/8SCF9pkRSg
— Caitlin Long 🔑 (@CaitlinLong_) November 4, 2020
Lummis Political History
Cynthia Lummis is a 66-year old United States politician who won conservative economic voters’ favor to clinch the House of Representatives seat for Wyoming in the 2008 US elections.
Lummis further won the subsequent run against her Democratic opponent, David Wendt, for the same seat in 2010.
Two years later, she won the Republican ticket for the third time to vie again for a congresswoman’s position in the United States House of Representatives in 2012. She clinched the seat in a commanding victory of over 60% of the total votes cast to edge past her Democratic “nemesis” Henrichsen.
In 2016, she did not participate in the re-election to the House of Representatives, but emerged in the political arena again in 2020. However, she sought the senate seat for Wyoming, where she edged out her Democrat challenger to clinch the seat. She will replace Wyoming Senator Mike Enzi in January 2021 after the US Senate’s swearing-in ceremony.
Cynthia Lummis Involvement with Bitcoin
Cynthia’s cryptocurrency belief in dealing with the exploitation of the traditional financial system was solidified in 2013 when she bought her first Bitcoin.
While she served as a United States Congresswoman, she reportedly got amused by the concept of a decentralized public ledger and the fixed supply of Bitcoin.
The self-proclaimed Bitcoin hodler considers Bitcoin a viable alternative to the US dollar for holding purchasing power for both corporates and individuals. She’s crazy about the protection of her labor over time.
She was impressed by the fixed supply of Bitcoin as a viable store of value. She contrasted the fixed supply concept with the US Central banking system’s measures of increasing money supply into the economy through quantitative easing. Moreover, she was worried about the snowballing public debt, especially in 2020.
Cynthia Lummis supports economist Nassim Taleb’s hypothesis exploring the US dollar’s impending adverse effects losing its reserve currency status. She fears that a loss of value of the dollar would be something that would negatively impact American worker’s earnings and savings. Her most significant concern is the loss of worth of the currency for which Bitcoin, at least according to her, seems to be the most reasonable remedy.
In a case of perfect coincidence, Cynthia Lummis will pick up a senatorial role over a state that has pioneered a charter to a crypto-related institution. Wyoming State Banking board sanctioned Kraken crypto exchange to offer financial services for digital assets in September 2020.
Moreover, the University of Wyoming recently declared its intention of setting up a unique institution to study crypto and blockchain technology.
Cynthia’s Store of Value Mentality
Cynthia’s dream of a currency that never loses its value over time fueled her Bitcoin hodling craze. As a prominent rancher in the US, she gave a notable example of her herd of cattle.
Each of the cattle has dropped in value by over 400 US dollars due to the Covid-19 pandemic. The cattle asset was directly linked, in her analogy, to the economy, and any imbalance in the demand pattern would alter the cattle’s value.
Lummis was in for an asset that can hold value, but is detached from the economy and thus not prone to price fluctuation. She attributes her enlightenment to her son-in-law, Will Cole, who introduced Bitcoin to her in 2013.
Bitcoin was quite different from the traditional currency and it could possess its value even under the test of time. Lummis invested in Bitcoin when the Bitcoin price was around $300. However, her optimism is firm after watching the currency grow in its store of the value attribute.
She celebrates its limited supply of 21 million BTC and holds fast to the economic concept of scarcity for a dependable store of value. She’s confident that Bitcoin has remained true to that hypothesis.
In the same vein, she criticizes the US Federal Reserve for printing more money to boost the economy at the expense of the scarcity principle. She fears that the US dollar may gradually lose its value from that move.
Cynthia Lummis only backs a decentralized currency as a dependable store of value. She doesn’t foresee any good from a digital currency that would be issued by the central government. Lummis is mostly pessimistic that a centralized version of a digital dollar may lack the scarcity attribute key for an asset to be relied on as a store of value.
However, she notes that the new centralized digital currency may prove useful because it brings convenience and exorbitant transaction fees inherent in the fiat currency set up.
Cynthia’s Forecasted Impact on Cryptocurrency
The US cryptocurrency scene may have just received a long-overdue political advocate and lawmaker. She might prove very pivotal in the clamor for digital currency with impressive precedence of pushing forward her “store of value” agenda when she served as treasurer for Wyoming.
Lummis believes that the 21st century should see a transformation from fiat currency to crypto. According to her, the current Covid-19 pandemic has taught us vital lessons that we should learn. Further, she holds the feeling that she hasn’t talked enough of cryptocurrency and blockchain as a politician.
Cynthia believes that if she takes it upon herself to boost the idea of cryptocurrency, especially in Wyoming, it will create a domino effect that will push the US to a crucial threshold of crypto. However, she wonders how many senators would share his optimism in cryptocurrency instead of the traditional fiat currency. All the same, she is ready to sell her idea to the senate once she’s there.