Systems, Protocols & Control
Regardless of whether you are looking at TradFi or Crypto, the power struggle is still very much a part of the game. The way of the world is control. He who has control has the ability to leverage and create wealth. This doesn’t change in a decentralized model. It is however a lot more difficult to achieve. Ultimately, a coin or entity that has a high level of decentralization is less prone to control.
It is however not exempt, which many tend to forget. Either way, there is still a level of control that remains with certain persons or wallets, depending on the nature of the entity in question. Certain individuals are attempting to increase their holdings and influence in certain blockchains and blockchain-based projects. The quest for power now has another playing field.
The idealists are unable to entertain such an ideology. It’s easier to ignore the elephant in the room. Where there is power to be gained, warfare will be waged. At the end of the day, this is the motivation behind all the “regulatory pressure” and FUD. Before we can correctly view the Crypto market, we have to understand the two key motivations at work, including the initial motivation of Satoshi.
Satoshi created Bitcoin as an alternative form of money, one that existed outside of the state and was not susceptible to the typical forms of manipulation and control. At least, that is the motivation he put forward and promoted. However, due to the market’s maturation, there is now a very different motivation at play. There is now an attempt to bring Crypto into the existing system.
The idea is that the existing control is maintained and that Crypto comes in under it. You need to view this in a hierarchical fashion. The goal is for TradFi to remain at the head, with Crypto coming in under its banner, while simultaneously improving its inherent structuring and processes. In other words, leveraging Crypto for the sole objective of increasing and improving the current system.
Satoshi envisioned an independent network… two separate worlds. However, every effort is being made to destroy this idea. As the saying goes: “If you can’t beat them, join them”. This is the primary objective, an amalgamation that sees TradFi maintaining its “supremacy” and dominance. The powers that be have no intention of allowing society an independent form of money. They are happy to allow Crypto, provided they have control.
As a result, true independence will become increasingly scarce. Look at Binance today, as opposed to 2017. Or more recently, look at Ledger, as opposed to 2014. The net is widening, and the goal is to destroy independence and true self-custody. Whether you are able to accept it or not is another matter. However, the true essence of Bitcoin was lost a long time ago. There are however still significant benefits to the network.
Understanding The Landscape
Those who understand the marketplace are the ones who extract value from it. Idealists, ultimately live in a bubble, unable to accept the sometimes harsh realities that are contrary to their own desires and ambitions. Understanding your terrain is imperative if you are to navigate your way correctly. This is also why the majority are unable to discern seasons in the market… they allow their own ambitions to muffle reality.
Understanding the future movements and maturation of any particular market gives you an edge. What should happen is not always necessarily what ends up taking place. This is an unpopular truth for idealists to stomach. However, understanding and accepting this is often at the heart of fortunes being made.
It’s quite clear that regulatory arms are being utilized as “whips of control”. The underlying message is: “Buckle or die”. There is no intention of allowing self-sovereignty and self-sufficiency. The true dynamics of decentralization are now facing an enormous test. This is definitely going to be an interesting ride. See you next time!