Regulatory policies have been a negating factor limiting the wide adoption of cryptocurrency in the world, since the inception of decentralized assets (bitcoin), several regulatory bodies have questioned the ingenuity of the digital asset as a tool used for illicit money laundering, anonymous purchase of illegal weapons and drugs, large transactions tracking difficulty on a blockchain network like monera all these have been some major reasons why regulating cryptocurrency have been a prolonged deliberated issue in different countries and financial institutions
A ban/crackdown impose by any recognized regulatory agency can simply distort an entire trending market negatively, we saw how China crackdown in 2021 affected bitcoin mining hashrate which drop by 8% in a single day this validates how centralized financial institutions could possibly play a key role in determining crypto mass adoption.
For country like El Salvador that has legally accepted the use of the decentralized asset, there are limited restrictions on its citizens, investors are protected its government official on the use of cryptocurrency this as a result has boosted its adoption and use of cryptocurrency for daily transactions in the country, and as a result, a considerable number of its citizens will have access to the digital decentralized asset without fear imposed crackdown.
Fear of uncertainty on what regulatory officials will impose on cryptocurrency in future is a continuous leading factor that has led to the slow adoption of cryptocurrency by high profile elite and investors today fearing new crackdown policy can be imposed which will probably amount to the liquidation of their life savings.
With a well-regulated policy on crypto, I suppose these investors would love to explore blockchain technology and invest their assets in the thriving chain technology.
Biden administration are looking into crypto technology to find possible means they can take advantage of the new innovation and how investors will be provided maximum protection against market manipulation, money laundering with a safe regulatory environment on all cryptocurrencies as an investment asset.
Most regulatory agencies were given time frames ranging from 120 days to one year, most often 180 days, for providing their reports on how Bitcoin and other cryptocurrencies operate within the economy, how to regulate them, and how to prevent their illicit use. source
An intriguing question that is yet to be fathomed is could crypto get regulated to become a driving tool under centralized financial bodies? these will be known shortly as several bodies have been asked by President Biden to look at ways cryptocurrency will be regulated.
With the new order signed several crypto assets have responded positively with a significant price increase, this shows that a lot of investors have been looking forward to what might be the outcome of this executive order.
The new policy can as well attractive multiple investors, NFT artists, game developers to the chain by providing maximum protection to such investors.
Final thought
Regulations are key elements for crypto adoption it role could significantly boost crypto adoption across the world, on the contrary, if cryptocurrency becomes a tool under centralized officials the purpose of introducing blockchain technology could possibly become invalid as transaction activities will be strictly control and monitor by such regulatory bodies which will make decentralization a thing of the past.
Reports from regulatory bodies in the coming months could exponentially boost wide adoption of crypto in the future if such reports favor the crypto space.
I'm not sure if the crypto space solely depends on official regulatory bodies for complete mass adoption to be achievable although favorable regulatory policy can serve as a key factor to increase trust and security for investors and users.
What are your thoughts on this should crypto regulatory bodies be a leading factor to determine crypto mass adoption in the world today?
Decentralisation in its Purest meaning is lost..
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Decentralization will loss it's grip if centralized official should hijack the system which is likely impossible.
im sure that all the big players in business and politics will find ways to utilise the tech and benefit from it financially and in some cases use it to further cement their power. For this reason Im sure that they will eventually become a major influence if crypto is ever adopted by the masses. Thinking about it, major corporate and political players are probably the only way for mass adoption to happen....
Of course I would be very pleasantly surprised if the decentralised world managed to make itself appealing enough for mass adoption to happen. That would potentially usher in a whole new era of global society. But my fear is that most of the projects out there will not put decentralisation first, and may well succumb to greed and short-sightedness, allowing bigger powers to take more control.
At the moment it feels like each blockchain is its own entire galaxy, with its own planets and its own citizens. I hope that this continues so that anyone can choose what sort of governance to live under. Then maybe we can all be part of the economies which most suit our preferences!
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Big players controlling the crypto space limits smaller investors from achieving much value of what decentralization is offering.
I love the fact we all can choose which blockchain suit us most this i suppose will minimize monopoly from those hijacking the system.
Of course it does mean massive and constant adoption, as this will encourage millions of people who were still afraid to invest, because if a country as big as the US decides to enter, many will follow in their footsteps.
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Quite a number of countries are looking up to US to make their next bold move if it turns out positive its a blast for the crypto space to rally to the next phase of mass adoption.
Exactly, the crypto phase is imminent.
I think the blockchain would never fully be centralized even as regulatory interventions increase. Freedom plays a big part of the blockchain's success, and any major regulatory crackdown will simply be resisted
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Blockchain offers freedom opposite from external bodies will only strength the crypto community being centralized is old fashion which crypto enthusiasts are not ready to embrace.
I listened to the news last night. That means crypto currency has been making name, that's another way to promote crypto currency.
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Crypto has always been making waves i suppose the government are looking at means of bring it under their primary control by introducing regulatory terms lets hope they fail this time.
That's it
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Interesting. I expressed my thoughts on this just a few minutes ago stating the opposite. I don't think regulations and the State looking after cryptocurrencies is positive.
It seems you are looking for a price increase when you say Bitcoin needs regulations [to attract big investors]. We'd want Bitcoin distributed among individuals and not onto the hands of a few elite heads and firms. Also, idealistically speaking, Bitcoin shouldn't be priced in dollars, but rather goods and services should be priced in Bitcoin.
You've summed up here:
I believe mass adoption is inevitable as soon as individuals learn how the Government can fuck up their life savings. If we haven't learned already after Canada's protests, pro-Ukraine Russians in Russia, and many other sanctioned countries whose individuals are the victims (not the state), we'll never learn.
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People need to understand how centralized system work it will help them get a better understanding why bitcoin is the best saving option.
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