The North Carolina House has passed the NC Digital Assets Investments Act on Wednesday afternoon, which would diversify the state’s investments by allowing the state treasurer to include digital assets in the state’s investment portfolio. 

As a co-sponsor of the bill, Speaker Destin Hall, R-Caldwell, has said investing in digital assets like Bitcoin would enable the state to generate positive yields for the state investment fund while also positioning North Carolina as a leader in technological innovation.

The bill passed in a 71-44 vote with Democrats largely standing against the bill. Democrats called it “hogwash” and brought up concerns over the unstable, volatile nature of cryptocurrency. However, Rep. Keith Kidwell, R-Beaufort, opined that all investments are a risk because it’s often an investment in air.

“What is gold truly worth? Nothing,” said Kidwell. “It’s only desirable if we desire it, if you’re willing to pay the price that somebody demands for that gold. What is the usefulness of gold? You can put it in computers, things of that nature. But other than looking pretty, it’s not like oil, where you can burn it in your car. It’s gold. Doesn’t do anything.”

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He said that’s true of virtually all investments, such as corporations, in which the value is based on what somebody is willing to pay for that investment.

“You’re investing in the hope that someone else will think whatever it is you bought is worth more than what you paid for it,” Kidwell further explained. “Whether that’s a crypto, a stock, or a barrel of oil, it all works the same way. Investments are air, that’s all there is to it. As far as risk management, that’s what investing is all about.”