The crypto wars aren't over! They're just heating up.
With the Trump victory, new SEC regime, and lots of pro-crypto overtures in the US, and clear regulatory frameworks being adopted in Europe thanks to MiCA, it can seem like the worst is over.
It's not. We still have to fight. Here's why (saved the worst one for last):
💀The regulated stablecoin to CBDC pipeline is real
The biggest, realest threat is that stablecoins are overwhelmingly becoming the most popular crypto payment solution. And those increasing their market share are overwhelmingly centralized and regulated.
In the future, stablecoins may be made fully-KYC by default. Decentralized ones are way behind, and may not get significant enough market share to become viable alternatives.
Then, we're essentially living the CBDC nightmare, with extra steps.
💀Different treatment for different cryptos
Already Trump is talking about tax advantages for "made in the USA" cryptos. Even if this is a good idea and his intentions are pure, governments offering specific advantages will funnel capital and users into cryptos they have stronger control over.
If most hashrate, validators, and developers for popular cryptos are in one country, doesn't that make them easier to compromise?
💀The "national security" argument
As cryptos become more important to the global economy, nation-state arguments for exerting XYZ control over the protocol for "national security" reasons will start to crop up.
51% US government-owned/subsidized Bitcoin hashrate after a strategic reserve is one such thing I can think of.
💀Crypto, especially privacy (or lack thereof), is now understood by governments!
This is the big one!
Most crypto, crypto users, and crypto usage have terrible privacy! They have remained effectively anonymous just because it took governments a while to catch up with the tech. But trust me, by now they have.
Most people's ability to operate with the feeling of complete autonomy and anonymity are in for a rude awakening soon. This could be the lull before the storm.
Yes, crypto is winning. Yes, it's here to stay. But we're still in a precarious position in regards to freedom money.
Keep up the fight! ✊
Posted Using INLEO
I'm sure if Tether and USDC were to require KYC in order to use their stablecoins, we'd see a fair share of the market switch over to DAI, HBD, and other algorithmic stablecoins.
The upcoming battles between different stablecoins and cryptocurrencies is going to be interesting for sure.
Good Point
We may, but only if that happened today. If USDC and USDT got massive market share for payments among normies, I think that would be very hard to switch from.
$HBD is pretty cool in these regards and we can not be regulated or stopped. Literally anyone who owns a laptop or even a raspberry Pi can spoin up a HIVe node and help secure the network. They have to regulate owning a PC to stop us. And no KYC here as we know ;)
As for the national security protocol taking over that is a real threat. Monero could help with this.
The only issue with HBD is relatively limited adoption. I remember when DAI was a viable decentralized alternative, but that didn't last.
Ultimately we'll need to get decentralized alternatives in much wider adoption.
yes, we have to work on that adoption. By accepting HBD in our businesses and convincing other businesses to also accept it. In Venezuela there are already a bunch of shops accepting HBD.
Very good to hear.
Check out the community. https://inleo.io/communities/hive-11800
this sounds pretty ridiculous and not sure how would it be implemented. if i want to cash out, i can just exchange it to an "made in the USA" coin and cash out right away.
Trump does not want to pay taxes on Trump coin 😂 and would be super funny if you don't pay taxes for Trump coin and pay taxes for Bitcoin. Maxies meltdown would be as funny as those tiktok vides after Trump won the elections.
It sounds ridiculous, but if implemented, any qualifying crypto will have a massive advantage.
Why would you buy Coin B, where you have to give up almost half of your profits if it pumps, when Coin A lets you keep all of it?
Will be interesting to watch unfold.
for that to be implemented you would have to prove you had that coin on a wallet for X amount of time, if not it makes no sense for most "normal" people (not counting billionaires or corporations).
You could make an argument that Hive could be a "USA coin" but lets say it is not. For example i earned 500HBD last month and i want to cash out. I could use LeoDex, swap it to "official USA coin" and right away make a transfer to cash it out, and keep it all.
But from my understanding the idea of Born in the USA coins is that they know who the main guy is, who can control it and then they don't even need CBDC. And Trump does not want to pay taxes on Trump Coin 🤣
It has nothing to do with an individual's coins, everything to do with the underlying network/project. If founded/run from the USA from whatever metrics they end up using, then its users in the US would be exempted from capital gains.
Actually this massively simplifies reporting. Right now you have to report every single transaction for gains and losses, including swaps and spends. A capital gains exemption of any kind would make this not necessary.
This was a good read, I never really though of all these things. The privacy issue is very concerning and, in my own experience, I have found it harder to use certain crypto in certain places. I hope you write a blog about this last point.
On privacy or on using crypto in certain areas?
on privacy and how the government is catching up to the technology
Yeah, privacy is an absolute war. It'll be ongoing. Right as we speak I'm talking to a cryptographer on fixing some of the leakage issues that still remain.
Watch these two videos I got done a couple of years ago:
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