The United States Embracing Cryptocurrency? Let Us Not Be Fooled
There is a lot of terrific stuff happening around cryptocurrency. We are seeing a rapid expansion of an industry before our eyes. The development is attaining such a level that it cannot be ignored. Of course, this got the attention of some powerful people around the world.
Governments are starting to plot their course regarding cryptocurrency. It is hard to tell which direction any of them will go. In fact, there is often division within an individual government. Obviously, with politicians, it is mostly a situation of one side adopting a stance simply to oppose the other.
Nevertheless, there are some interesting developments taking place which are both encouraging yet should also make us leery.
The United States Embracing Cryptocurrency
We are seeing some views espoused that look at cryptocurrency in a favorable manner. If true, this could be a major windfall for the entire industry.
It starts with the Chair of the Federal Reserve, Jerome Powell, coming out and stating the United States is not going to ban the usage of cryptocurrencies. This is obviously the exact opposite of the approach China is taking.
And it seems this is precisely what the States plans to do, at least according to the Federal Reserve Chairman Jerome Powell. During yesterday’s House Financial Services Committee meeting, he said the government has no intentions to ban cryptocurrencies.
Naturally this is welcomed news. The United States embracing not only the existence but use of digital assets would be a major step forward.
We also have some political figures mentioned Bitcoin as a *new gold reserve.
Blake Masters is a candidate for the Senate. Part of his platform is the idea of the U.S. setting up a strategic Bitcoin reserve similar to gold. He says the country needs "Fort Nakamoto".
While Masters is a candidate and might never hold office, there is one Senator who seems to be following the same line of thinking.
Pat Toomey sits on the Senate banking committee. This is what he tweeted out:
“Beijing is so hostile to economic freedom they cannot even tolerate their people participating in what is arguably the most exciting innovation in finance in decades. Economic liberty leads to faster growth, and ultimately, a higher standard of living for all.“
Of course, this might just be rhetoric taking the opposite stance of China. Either way, it could be viewed as encouraging news.
Trusting Politicians?
While this all sounds promising, it is best to not be foolish.
Politicians are not about promoting freedom and giving people more options. That goes against their nature. In the United States right now, it is easy for someone like Toomey to make a statement like that; his party is not in control. Hence, he can get on a soapbox knowing that he has no power to implement anything. Of course, Masters is just a candidate meaning his words are nothing more than campaign promises.
Even Powell is still in a bit of a campaign mode since he still has not been appointed to another term. That said, his coming out with a forceful statement like that does carry a bit of weight if he gets confirmed again.
The problem is that, while these individuals have no interest in banning cryptocurrency (which isn't possible anyway), they do want to control it. They are not interested in having an alternative system erected. Instead, they view cryptocurrency as another asset class that is meant to be merged with the existing financial structure. To them, that means regulation and under their watchful eye.
Political winds are just that meaning they are open to change. An industry cannot depend upon the political trend that is in motion. The reality is things can change at any moment.
Nevertheless, cryptocurrency is a divisive subject among governments and the people in it. They cannot truly wrap their heads around it all. It appears most are stuck trying to figure out if it is a threat or something they can leverage for their benefit. We are seeing different governments falling on both sides of the fence with it.
No Government Approval Required
Cryptocurrency, Bitcoin specifically, was not developed to be approved by government or the existing system. Instead, it was born out of the financial collapse caused by the bankers. This is a situation where we have something that was purposefully designed to be outside the reach of the existing entities that are in control.
We need to implement our own solution to the existing problem. This means we embrace the main tenets of what was set forth in the earliest days. Decentralization, distribution, and open source are more than just words, they are values that we need to embrace as often as possible.
It is also the defense against those political and government winds that are against us. While some might be taking a favorable stances towards cryptocurrency, at best they have an ulterior motive. This is not what the industry needs.
Certainly, the existing avenues should be pursued in that arena. However, we cannot depend upon it. To do so would be foolish.
Therefore, we need to apply our best weapon, which is development. For all the focus upon the financial aspects, at the core, we are dealing with a technology. This is all code and can be expanded or adapted as needed. In other words, we can always code around whatever they set forth.
If the United States is embracing cryptocurrency, that is terrific. It is the largest economy in the world and tends to wield a great deal of influence around the world.
However, we cannot be fooled into thinking things are safe. We need to double our efforts to ensure what we create is truly outside of their reach.
Then, we are in a position where they have to embrace it since there is nothing they can do about it.
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In the end, cryptocurrency has been a saving angel for the US dollar.
Before crypto, the petrodollar made the USD a valuable currency to be held, because oil was important, so everyone had to hold dollars. This saved the US from inflation even when they ramped up the printing machines.
Now, because almost every crypto is traded against the dollar, I think we could call this "cryptodollar". Because cryptos are traded in dollar it gives the USA an edge to keep printing, knowing there will be demand and speed of money flow.
They hit the jackpot by having a growing market, like cryptos, traded against dollar, while at the same time the oil market is still largely and mostly traded against dollar.
The stablecoins that are "backed" by the USD is helping the reach of the USD as well as furthering the monetary policy of the Fed.
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I know you all will really disagree with me all the way here. My theory is cryptocurrencies and the government are on opposing sides. It's no logical reason i can think of why any government would be accepting or okay with a cryptocurrency. It seems anti to most governments. So i believe the reason the us govt doesn't ban bitcoin or never ever entertained it. Although it has aml and kyc laws.
I believe the us govt is responsible for bitcoin and many other nations either know or suspect they are. So just let's logically entertain this for a moment. When facebook decided to create a way forward on it's own cryptocurrency. Why didn't they us govt simple sit down with facebook and create a way forward.
They convened congressional meetings caused them to cease and desist all operations immediately lol. They didn't jerk around on it like how they do with bitcoin and other cryptos. Play around oh i don't know if it's a unregistered security.. maybe it's not etc.,
it's just such a load of crap lol. Listen anytime the government is signing off on something. In a lackadasical way going well i guess it's okay. That's when you should be worried lol. That means whatever it is somehow serves the governments agenda. Now china and all these other countries the reason they don't waste anytime getting rid of crypto is because they may sense there is a trojan horse in it. They don't know where this stuff really came from just as much as we don't know. We just picked up something left by someone else we don't even know. Made the assumption it's for our freedom or whatever narrative we decided to place in there. So we don't really know what the total reaching impact of this will be.
So by this logic something like facebook would be the real savior. The reason that would be is because then facebook would have the power to create certain monetary policies that could really give people economic freedom and prosperity. I know many can't see it or they so wrapped up in all their narratives about facebook and teh government. It's just such inconsistency in alot of their thought processes. if facebook then is the enemy of the people and the enemy of the government? Well the enemy of my enemy may be my friend.
Or was the government more afraid of something like facebook being able to show the world you don't need a government to spread prosperity to people. So whatever the case may be. it's some legit reasons for other countries especially who don't know what's going on to ban cryptos. It's reasons for facebook to get more trust in this than the government. As i believe facebook always had a right to create it's own currency under law and the government shouldn't have been up there in the first place hindering them.
Not saying i'm a facebook fan. however i do see a facebook like approach where people own their data and value the oil of the 21st century and are set free through it in deciding for themselves and being valued based on human rights from birth that can't be manipulated or taken away from them through some economic scheme.. or ponzi scheme . or pyramid scheme or top up bottom down control which is our entire capitalistic model basis. So that's why i feel alot of this narrative is inconsistent. However for me the truth lies in the quality that goes back to the people and health and economic prosperity.
Look i don't care if you all think it's a good idea to go out and start some type of business and as long as you can do that everybody else can starve and be sick and be slaves and a few people get rich. That to me is the dumbest ever ideology to base a system on that it's just so dumb it's funny.
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He said no intention to ban cryptocurrencies, but has intention to regulate the stable coins. I think this was said as a counterattack of what China have done recently.
Well I think the stablecoins regulation is coming from Congress but you are right, they want to get their hands all over things in terms of regulation.
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So who really has the final say in all of this? Is it Yellen? Powell? Gensler? It seems like all of them are on a different page. Did you see the news story about the mayor somewhere that is going to give every resident $1000 from crypto?
https://www.independent.co.uk/life-style/gadgets-and-tech/bitcoin-mayor-free-crypto-b1929848.html
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Yeah I read that a while back. Give them $1K in BTC and then have them hold it.
That is the great thing about the USG, they are not all on the same page.
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Valid points! The government would also be wise to keep a back door open, especially when you have access to the printer. Conversion of trash to hard money...
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Once the politicos see the grand vision of what crypto truly is they will go along for the ride. Not that they have a choice either way. A laissez faire approach is the best policy as it pertains to crypto. Meanwhile development will continue. Sadly, China continues to make a mess of things with the Statism nonsense. Hopefully the entire world can come to an understanding as it relates to free markets.
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I was watching the clip where he gets directly questioned on the quote saying crypto would be banned and he lied with a straight face which most politicians are good at. They have to look after the ones that back them and are the reason why they are in that position so what do we expect these puppets to say and do.
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Well he isnt truly a politician. He is appointed and a bureaucrat.
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The politicians and banks are not to be trusted. You can fully expect them to put rules in place to benefit themselves and not the little guy
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What they really want is the full control of cryptocurrencies.
But guess what? It will never happen!
I wouldn't take that position. They'll take it if we don't pay attention. They'll have it if we're comforted by a false sense of security.
wherever a politicians see money flow, they want a piece of it! that's always man. Surely almost everyone have in their wallets a bunch of BTC and ETH, but they just like to be hypocrite as always.
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Oh my god that's the truth. The US passed a law for a new tax on mileage. They just can't let it go. They're more comfortable with creating more taxes than they are with justifying their expenses.