We continue to follow closely the effects of government regulators on crypto exchanges around the globe.
Obviously, the market prices have dropped almost 40% on the biggest cryptos the last couple of weeks, and the primary reasons are not fundamental to the valuation of Bitcoin, Ethereum and others. The significant gyrations of crypto values continue to be based on simple FEAR of government attacks and added regulations or manipulations of various exchanges…mostly in China.
Like so many disruptive technologies changing our world, the average person has no understanding of technologies and the causes and effects of change that derive from disruption. People fear what they do not understand, and governments or other institutions thrive on ignorance of the masses.
While BitCoin and the larger cryptocoins have all enjoyed phenomenal growth and acceptance the past couple of years which have naturally driven up the valuations tremendously, it is still a very small percentage of humanity that understands or has interest in the new digital money now proliferating the world. As has always been the case in new money systems; whether it was credit cards, ATMs, etc; the masses have always been repulsed by change until forced by mass adoption and convenience to change the way they do payments. Only a few years ago a majority of people you talked to said they would never buy online via the internet or cellphones. Now you are seeing cash and “brick and mortar” sales being replaced at a blinding pace in the global marketplace. Soon you will see upcharges for dirty and valueless cash in the marketplace until it is altogether replaced by “digital money transactions”.
While governments tend to negate new technologies until they can “control” them, cryptocurrencies are an all-new phenomenon that even the major countries like China, Russia and the USA are clueless in how to control the market adoption of this digital asset and currency. How do you FAIRLY tax something which value changes every minute of every day based on pure free market “supply and demand”?
The main point the masses don’t understand is that they don’t need “institutions” to regulate their everyday financial transactions. People for millenniums were able to trade and barter just fine without third-party interventions to survive. The new crypto technologies and its underlying technology of “Blockchain” can basically replace all third-party controllers of transactions such as banks, accountants, and lawyers for most exchanges of value.
In addition, true freedom has always been reliant on privacy and confidentiality of one’s personal financial affairs. It has only been in the last century that the masses have been convinced by their governments that they need to report every asset or financial transaction to “the government”. We have been herded and manipulated long enough. It is now time to take back control of our assets and privacy, guaranteed in the few remaining countries that govern by constitution and consensus.
China can shut down every last one of their crypto mining and exchange operations. The concept of digital money and exchange will simply remain an agreement between millions of private individuals who have learned the value and freedom of global exchange based on personal property rights that should be GLOBAL rights for every human walking the earth. That day is quickly coming, whether China likes it or not.