Soo cats, as always it has been a while. I have been a little busy working on other projects, learning new languages, and now and then trying to follow this cryptocurrency thing. If you don’t know about this “crypto” (what the cool kids call it) thing, that’s fine. I don’t either, but I think I know a few things and that is quite a bit more than what is being “online” published (not that there is anything wrong with that). So, I figure I’ll add my two cents.
Crypto is usually explained as a technology that has the potential in some cases to act as a currency and be used in transactions. However, that limited explanation only scratches the surface of the possibilities of some “coins.” Crypto can also be used as a contractual ledger or a means of storage. And, I’m sure that there are additional current and future functionalities that I am not familiar with in use and production. But, there is something else that scares some people. Crypto has the potential to make global transactions easier and anonymous. And, that’s the kicker.
A portion of a government’s control of their populace stems from their ability to tax and control their respective national monetary systems. Though Bitcoin (BTC) has been around since 2009, governments, who are slow to understand the potential impact of developing technologies, until recently, have focused on more pressing matters, like sexual misconduct scandals, than crypto. However, last year was a big year for crypto and governments are taking note to the point that the G20 has put the discussion of regulation on the table.
Briefly, let’s discuss the difference between regulation and a ban. I read an “online” published (not that there is anything wrong with that) article last night that was written by someone who did not know the difference. In the hopes that he reads this, let me try to explain. Regulation is regulation, and a ban is a ban. (Everyone else can move on, but if you wrote that article, just go over that sentence a few times and maybe find a job where you do not have to use words.) The title was something like “G20 discusses Cryptocurrency Ban.” That’s not my understanding. From my research, what is being discussed is the need for international regulation to protect their citizens from cryptocurrencies. And, what that means is, “we are losing control and want our cut.”
From some research, only about 1% of the world’s population have any knowledge of cryptocurrency. And, other than in South Korea, where officials have recently used their positions to manipulate the crypto market, I’m pretty sure there are not many politicians in the 1%. Another significant portion of that 1% just bought-in because they thought they could make a quick buck. These are the ones that help the “Wales,” persons who own a large enough percentage of a ‘currency to impact the market, create the swings that have been both large and common. They buy high, panic when the price fluctuates, and sell low. They don’t understand the technology or the potential and just barely the numbers. A lot of articles are written by “experts” that belong to this category. Today things may be “up,” and they will publish something about BTC hitting $1 million by Spring and tomorrow things may be down and…Tulips. (“I’m going to impress my readers by adding a historical tone to this article since I know nothing about cryptocurrency.” Morons.) I have just one thing to ask of these investors and writers, sell and move on. (Ok, maybe two things.) I fall just barely outside of this category. I do some research, but I often rely on the advice of others that do a lot more. We buy based on the current or proposed (in the case of Initial Coin Offerings) technologies and hold. And, we, for the most part, ignore the waves made by the wales with the assistance of the uninformed.
Wow, that took a while, and it’s not even where I wanted to go.
Here is the deal. Though the anarchist in all of us would quietly like to see a reformation of governmental structure that would lead to more personal and financial freedom, that’s not going to happen without a struggle. However, we have all been discussing the potential for the growth of this technology associated with more significant acceptance. Though the discussion of regulation is going to cause some angst, especially to the uninformed, the fact that crypto is being discussed at the G20 means that it is being recognized (even if as a threat/challenge) and a certain amount of regulation will lead to a higher level of acceptance.
So, I’ll begin to close with this utterly unresearched thought as I remind you that I’m usually right. Governments work for “Big Money.” (This could be why alternative fuels will not be successfully developed until we all run out of gas.) “Big Money” has fought this crypto thing for a while, which has led to some embarrassing moments for some of them. Now, “Big Money” is starting to get on board, and they understand that it is difficult to fight advancements in technology. They will use their influence to create regulation that ensures that they, through their governments, maintain some control of the financial markets.
It is still a Wild West out there. The idea of a global financial system beyond governmental control is still a long way off, and though attempts at limiting “Big Money’s” buy-in to crypto through caps in ICOs have been chivalrous, now that this market is on their radar they will begin to manipulate it as well. There are going to be a lot of scams, and some people will get hurt as we learn to live with new technologies that can potentially change global systems. Government or international government regulation through the G20 is not going to help that. If you decide to get in do your research or talk to others who you trust that are doing their research. Invest, or support projects that have positive goals, real missions, and good teams behind them. Don’t invest what you cannot afford to lose. And, hold on. It’s going to be a wild ride.
Wow, that was some serious stuff. I really should wait till the pills kick in before I write.
Thanks for stopping by.
Sunday, January 21, 2018