China Legalizes Cryptocurrency
The wave is spreading.
It is becoming evident that the new Trump administration is going to be friendlier to cryptocurrency than Biden (or Trump's previous term) was. This is providing an optimistic outlook for anyone associated with the industry.
Wall Street, for better or worse, is building a host of products tied to crypto. It is also working on providing the foundation which will lead to the tokenization of real world assets.
We are looking at the potential for another boost, this time from China.
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China Legalizes Cryptocurrency
Chinese citizens can now legally own cryptocurrency. This is important considering this is the second largest country, by population, in the world. It is also the second largest economy.
In a groundbreaking move, a Shanghai court confirmed that personal ownership of cryptocurrencies does not violate Chinese law.
This unexpected clarification provided much-needed legal assurance for crypto holders in mainland China. This signaled a shift in the country’s stance on digital assets.
Many countries are starting to change their stance on cryptocurrency. As always, the financial side gets all the attention but this is, at its heart, technology.
Therefore, the issue at hand is to get on board or risk getting left behind. In this era, when technology is moving so rapidly, a few years delay could place a nation decades behind.
We saw this with the Internet, an innovation that emerged from the West which, not surprisingly, dominated for a couple decades. This was most led by the United States.
China did eventually catch up but it does not want to find themselves in that position again.
That said, there is a bit of a twist.
Despite the ongoing ban on cryptocurrency transactions that was imposed in 2021, this ruling offered a significant legal distinction. This highlighted that personal possession of digital assets does not violate Chinese law, even as regulatory restrictions on crypto trading remain in place.
The view that speculation is wrong means the ban on transactions is illegal. What we are seeing is a step in the process.
Governments: Get Out Of The Way
Government support for cryptocurrency is not required. This is something that will succeed on its own.
The key is to not have governments hindering the progress. Unfortunately, we found ourselves in this situation in many parts of the world. Overreaching politicians and bureaucrats have caused untold amounts of damage. It probably set the industry back 5 years.
With the sentiment (along with regulatory approaches) changing, perhaps we will see an acceleration of development. Many are no longer fearful of the ramifications of creating software that could get them in trouble.
At least we seem to be heading in this direction.
Personally, I never felt there was a fight between governments and crypto. It was a done deal before the battle was started. Governments were impotent against crypto. While they could delay things, ultimately, they would get run over.
Between the Gary Gensler and Operation Choke Point 2.0, the Biden administration could not have been more anti-crypto. In spite of this, the industry managed to grow.
This took place with serious headwinds from the United States. To this day, there is still a lack of clear regulation from that country. The EU is a bit further along in this area, helping to attract companies.
Neutrality from the government is all that is required. If, however, there is a tailwind, where supportive legislation emerges, this could actually accelerate things. For me, I find this unlikely since government bills are packed with so much stuff they end up creating unintended consequences.
Development Is Key
One thing that does not change is the need for builders. Development still remains key.
This is especially true with open source and decentralized systems. We know the major corporations will dive in headfirst once they have clarity. The challenge is they are rent seekers, looking to extract as much as possible from the system.
We can see how this is a problem when coupled with AI. The centralization of LLMs within Big Tech is evident. Since we will likely see a coupling of crypto and AI, this can result in a dangerous situation.
The industry must counter this in every way possible. Building outside the Web 2.0 realm is essential. Crypto is part of the foundation of Web 3.0.
We must ensure it is not hijacked by the combination of Wall Street and Silicon Valley.
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I think we are about to see some good days ahead, not just price wise, because I only care about that when trading, but just overall. Hoping that more and more businesses start accepting it along the way.
People have to stop focusing upon price (except when trading which most should not be doing anyway).
There is an entire internet to remake and people are worried about green candles.
Bro, we have been beating the same drum for years now and it's still just going the same direction. So I am using DEXs to trade and make a living and then just trying to actually spend and use the stuff to provide some infrastructure where I see fit for me to, whether it be mining, nodes, 3D printers, or farm stuff.
That is all you can do.
Most are sheep, only following the herd. Have to set the example and use what is available to our benefit.
I am pretty much done with trying to be someone and build stuff in this space. I still have a few little things going, but I am just tired. I want to trade for a living, and not worry about teaching because people just want to be handed the fish instead of learning to cast a rod. I am focused on just using my tools instead of selling it. So from here on, my content is pretty much drone and 3d printer related, lol. Because that's just fun. The sheep have killed my motivation.
It's the future. Almost every powerful country is on to cryptocurrency. I see a brighter future !BBH
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The end is absolutely the most important point. We have to make sure that we separate centralized companies with their AI and control over crypto people use. That’s the most dangerous part of it all and certainly what they want to have as the end goal.
The democratization of data is the major starting point.
USA falling further and further behind. Let's get going already!
To some degree that was true. However, if I am correct that AI and crypto are linked, then the US is actually gaining. It is ahead of most other countries in that area.
Many more countries will follow this. But I am worried with the news making the rounds that Australian Government want to ban social media for children. In as much as I agree to that because of polluting the children, I have a problem that this might be the beginning of government talking control of decentralized systems.
Australia is going to shoot itself in the foot...as are many of the countries that are following a similar path.
Politicians and bureaucrats are the same all over the world. They cause more damage than most anything else.
!PIZZA
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You may say 'it's different this time', but China has spent the entire lifetime of crypto's existence banning and re-banning, and profiting from the pumps that come as a result of their influence.
They're just sniffing out the obvious opportunities to rake it in
The difference is the courts says it legal. It is one thing when the party does it but the courts overruled it.
Now, how separate are the courts? That is another question.
Perhaps China realizes by now that it cannot continue its fight against crypto without harming its economy.
Do they believe that they're helping the industry?
!BBH
!PIZZA
#cent #pob
My view is they are mostly concerned about power. That is what it boils down to. Regardless of the party or ideology, they simply want all to go through the government so they can put their hands on it.
To me, this is a quick revolution in the crypto world. Thank God I'm already inside the crypto Globe 🌎💃💃.