Reality Evades Regulators
Governments and regulators are currently enjoying their reign, as they continue to flex their muscles. However, the reality and true dynamic of Cryptocurrency is yet to be understood and comprehended by these entities. This is the reality that still needs to hit home: You can criminalize Crypto but you can’t stop it. What this ultimately means is that unless a law is respected, it has no power. The only power that regulators have is to frustrate the “flow” via gatekeepers. These are your third parties, such as exchanges, lenders, and certain vendors. This reminds me of how things were initially when it came to the music and entertainment industry. There was this initial “tough guy” stance, which ultimately led to a scenario of “all bark and no bite’.
Eventually, enforcers realized they were actually unable to enforce this particular law due to the nature of the industry. Unless law enforcement agents went door to door and conducted extensive searches, there was no way of enforcing this particular law. The reality is that this never happened. Furthermore, trying to police Crypto is even more difficult than policing the entertainment industry. In my opinion, regulators need to look ahead and consider the implications of coming down too strong.
I am sure that by now, most people have come to accept the idea of reasonable and moderate regulation. This is where I believe governments and regulators should be aiming to plant their flag. Overextending, in regard to Crypto regulation, will ultimately be counterintuitive, in my opinion. We all saw how excessive laws and regulations during the pandemic ultimately led to chaos and a blatant disregard for the very laws put in place. Push too far, and you have a problem. This is applicable to most situations. I am hoping that regulators begin to understand this technology, ultimately leading to a more acceptable set of laws.
Different countries obviously have different outlooks, which is a good thing, in relation to maintaining more viable alternatives. There are ways that both parties can meet halfway and satisfy the objectives of each. Unfortunately, these entities are known to take the hard approach, which never ends well. Unfortunately, they are also known not to learn from the mistakes of the past.
The current inflation rate is evidence of poor leadership. However, once you embark on certain journeys, there is no going back. What we are likely to experience in regard to inflation is the scenario of ” two steps forward, six steps back”. There is no escaping what has been put in place. It has to play out, which is exactly why Crypto has such a bright future. The current monetary system will eventually collapse, despite the “rescue attempts”. The dollar is doing well in comparison to the majority of other fiat currencies. However, it is also losing purchasing power at an alarming rate.
The Consequence Of Overreach
If regulators push beyond what the Crypto community considers “acceptable” they stand the risk of creating the very outcome they fear, an alternative monetary system, functioning outside of the state. Provide an acceptable set of regulations and in many ways, this dynamic will be avoided. You will always have those operating outside of the system It’s funny how cash has never been viewed as a “threat”, as it is even more susceptible to “questionable practices”. The reason is most likely due to the realization that there is not much that can be done about it. Strangely enough, the same is true when it comes to Crypto.
As I mentioned earlier, it can be criminalized, but not stopped. Anyway, I guess we have to wait and see how this unfolds. It will however be quite a lengthy process, spanning many years. Thanks for stopping by, have a good one, and see you in the next one!