Governments are doing their best to control what is happening.
All over the world, we see actions being taken in an attempt to control cryptocurrency. The United States is one of the countries at the top of the list.
Little has to be said regarding the actions of Gary Gensler and the SEC under his watch. It has been nothing more than a series of attacks. companies like Ripple, Coinbase, and Binance all find themselves in the crosshairs.
The SEC hit them all up with lawsuits, claiming violations of one sort or another.
Ultimately, this all boils down to the governments wanting to have complete control. This is what they do. That is why we are seeing aspects of the industry rolled into the banking system. The governments have full regulatory authority there (control is something that could be disputed based upon the actions of the banks over the decades).
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Technology Wins In The End
Brad Garlinghouse, the CEO of RIpple, echoed similar sentiments in a recent interview.
The case by the SEC is presumed to be nearing conclusion. While the outcome is still uncertain, Garlinghouse is optimistic for the industry.
According to the Ripple CEO, the SEC’s efforts to curtail crypto activities will fail in the long run. He noted that what the SEC is doing in its fight against crypto is nothing compared to the industry’s continued multi-decade growth.
This is something that can easily get overlooked. The cases garner a lot of publicity yet the growth of the industry, regarding development, goes unnoticed.
Furthermore, Garlinghouse highlighted his optimism about the future of crypto, noting that all the current happenings will look pale with the industry’s development twenty years from nOow He believes users will measure the crypto market in many trillions in the future, noting that it is an industry that will change how transactions work. According to the Ripple Chief, cryptocurrencies reduce friction and cost, making things more efficient. Source
Here is where the overlook occurs . Of course, considering his focus, it makes sense that he mention transactions. It actually is a great deal bigger than that.
Nevertheless, even isolating on that, we are looking at a radical change. Even central banks are experimenting with blockchain for transactions, albeit not permissioned ones they control.
The challenge for them, as I see it, is the focus. This situation is being misread.
Cryptocurrency Is Not An Asset class
Wall Street, regulators, and even most within crypto think of it as a new asset class. This is placing it against the wrong backdrop.
We will see a day when everything is crypto. That is what the tokenization of everything really means.
Cryptocurrency is not a new asset class. Eventually, all asset classes will be represented as cryptocurrency. This will include companies, art, real estate, intellectual property, and social layers of entities. It all will be tokenized.
This will drive the values into the quadrillions once we factor everything in. That is why I say the focus of someone like Garlinghouse is to narrow.
It is similar to artificial intelligence. Leaving aside the fact they will be tied together, they are going to follow similar paths. What does AI affect? It has the potential to disrupt everything. We see a similar thing with cryptocurrency.
The idea of controlling something that is tens of trillions is foolish. Yet that is exactly what governments, or the people in them, think they can do. Take the economy. politicians and other bureaucrats believe they can alter the path and control it. Repeatedly, this is proven false.
Cryptocurrency has the advantage of being used as money while also being a technology. The latter is what makes it difficult to lasso. This makes it an organic entity that follows the path of other complex systems. Simply put, it is bigger than even governments.
This is one reason why the focus upon Bitcoin is misplaced. Certainly, it helps as a buffer since that is what gets the mainstream attention. However, that is not where the real action is. There was a time when CompuServe or AOL were the biggest names tied to the Internet. As it turns out, they were not the real story.
The Evolution
What will be the real story for crypto?
That is yet to be written. We are still developing, helping things evolve. This is an evolutionary process, with a foundation built from which others can stack things upon.
We will know things are ready for an explosion when the application layer starts to blow people away. If we use LLMs as a parallel, they were in development for years. It was only after OpenAi brought out a UI that anyone could use that things took off.
Technology always follows a similar pattern. We are looking at an added dimension since, with cryptocurrency, the data has market value that can, in most cases, be instantly realized. Try turning stolen plans from the Pentagon for a new fighter jet into cash. That might take a while. It certainly has value to people yet lacks liquidity.
Cryptocurrency, and the associated development, is going to make everything liquid. This is what the governments either overlook, or are ignoring in an effort to maintain relevance.
If we harken back the file sharing days, we might gain some insight as to how this will turn out.
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I agree to an extent. But never underestimate evil people who desire nothing less than complete control. Self custody is all good but it is impossible to use crypto if you're locked in a cage. Unfortunately, I believe most crypto will eventually be co-opted by governments (specifically the WEF held ones). Like atomic energy, it will take an advancement that can create positive change and turn it into the ultimate means of enslavement (ie CBDCs). We need to establish parallel economies and communities outside of their control. And then we need to protect them.
Certainly people need to opt out. Of course, you are presuming that the WEF is going to win which it will not.
Schwab is an academic. He lives in the theoretical world. That is their problem. History shows that those who operate from that perspective end up failing.
Theory and how people behave are two different things.
You can see they fear the truth behind cryptocurrency on how they act and talk about it. In the beginning it was all scam in their mind but now they see how people all over the world see it. Freedom and truth is danger for the Government!
The analogy to the evolution of the internet and the anticipation for an explosion in the application layer suggests that cryptocurrency's true impact is yet to be fully realized, but its liquidity and market value hold immense promise for the future.
It is technology so it should ride the technological wave like everything else.
Governments really think that they can stand up all of a sudden and start controlling or deciding what each person would have to do and what not to do and that is the reason they think they can control Crypto.
In Nigeria, the government has been struggling to eradicate Crypto but they willosr at the end.
Thank you so much @taskmaster4450 for This enlightenment on the government Vs Cryptocurrency, I really benefited a lot.
For me crypto and especially Bitcoin is a revolution of the people against the Government.
Politicians and bureaucrats end up thinking they can control the uncontrollable.
Complex organisms cannot be controlled. That is why they repeatedly fail with the economy.
That's the simple truth of the whole matter between them.
Governments will try to impose laws and there are different types of them with a distinct mindset to set forth. We see mild stricture upon continuous trading in USA and they dont bother with the growing technology being added to the system.
But, what is reality will always be a reality and we dont have other ways to move without it. Jist think about the AI and how it is growing. Jobs will be shed by it, but still we cant live without it also.
That is my view with jobs but there are many who oppose that idea.
We will see how it all unfolds.
Thank you for the information.😊
Thank you @taskmaster4450 ....We always hoped this would be true, from the very first moment Bitcoin arrived on the scene.
How do you think ETFs will affect crypto in general?
Cheers!
I think that what you are saying is that even if individual crypto coins don't make it, blockchain technology is revolutionizing global finance by making easier to exchange goods and services without intermediaries.
In the case of Ripple, XRP in itself doesn't do much other than pay transaction fees. More than anything, it's a payment rail for banks to make fiat transfers at negligible cost.
Governments trying to control crypto feels like cupping water in ones' hand. It slowly trickles away. As more and more apps and uses are created, people will slowly move to them and the governments will lose their control.