What will happen to crypto when government does XYZ?
The same thing crypto does in every situation: adapt & evolve.
Most users, including myself, end up getting very frustrated and impatient with crypto. It's too "slow". Why am I not a multimillionaire yet but this 14 year old kid over here has a memecoin moonbag? Every bull market is accompanied by a bear market full of hacks, scams, incompetency, cash grabs, and greed. Can devs do something?
Of course crypto is one of the fastest evolving asset classes in all of history. It gets labeled "tulips" and "Dot Com" bubble every four years. Spoiler alert: those events only happen once. It adapts quickly and we have millions of devs across the board to back it up.
Bank Failures
I haven't withdrawn any crypto to my bank account since March during all the crypto bank collapses. Since then I've been worried that subsequent cashouts would result in multiple-week wait-times just like the bad ol' days before Coinbase extended their users lines of credit and other neat tricks to lower delay.
Last Friday at 4 PM I initiated my first withdrawal and braced for impact. The email had not changed: "you'll get your money within 4 business days". That's today. So I check my bank account and I got the money and everything was all good. What surprised me is that looked at the backdates I noticed that the transfer had already cleared long before that... in fact it had been posted the exact same day I made the withdrawal on Friday. Wild.
So I was essentially worried about nothing.
Coinbase and other exchanges are processing the fiat ramp just as fast as ever despite the three biggest crypto banks folding. I'll be honest I didn't see that coming but again even the centralized agents in this space move quite fast. After all their livelihood depends on it.
And honestly I'm not that worried about Coinbase moving overseas either. It seems much more like a politically motivated bluff to sling mud at the regulators, which as we all know is well deserved. There's always going to be at least one big exchange that puts up with all the bullshit and sticks around for the massive demand and liquidity pools in USA.
Ledger CEO: Government Can Subpoena Seed Phrases
WOW WOW WOW
So if you'll remember my last post I was talking about the Ledger recovery debacle. Reading this article the situation is so much worse than most even assumed it would be. The CEO openly admits that not only do the 3 entities unilaterally control access to the keys but "of course" they will allow governments worldwide to subpoena seed phrases. But again don't worry about it because why would governments do that? lol. The Ledger brand is a joke now. Didn't see that coming honestly but I guess the data breach was pretty good foreshadowing.
So they are offering a "service" in which you pay $10 a MONTH for someone else to own your keys. Classic example of things that should be free but aren't because they are surrounded by dumb money. And this point I'm rooting for the big boys like Zuckerberg or Dorsey to simply undercut them and take all their business. They deserve to be gutted over this.
Regulation
Crypto can code faster than regulators can regulate. The regulators know this which is why the SEC refuses to provide clarity to the asset class. If they set the rules in stone it's game over and crypto will become instantly entrenched in a ruleset of the government's making that will be very hard to undo.
Forks and Clones
If any sub-community is upset with the direction of the product they can up and move to a new digital landscape whenever they so please. This is a key aspect in crypto's evolution. Much easier to pick up and move everything to a new location when both places are located in cyberspace. The ability to hack open source code and create something new is the foundation of crypto and its evolution.
Hostile Takeover
Speaking of forks, the Hive community is already well versed in the subject. Yeah it was a pretty unfun time while it was going down but now it feels like the consensus is pretty much that we are much stronger now than ever before. Imagine that happening in the real world. Imagine something like a war-torn Middle Eastern nation saying, "Yeah war is awesome our country is so great now." Imagine everyone being able to profit from the war and the attackers losing money. Crypto is opposite day in many respects.
Conclusion
A change of environment results in adaptation and evolution. We should not be worried about adversity that comes our way, as we've always been able to keep driving forward into the inevitable sunset. In fact, adversity is required to create a robust system. Everything here is self balancing. Everything is cyclical.
- Good times create weak crypto.
- Weak crypto creates hard times.
- Hard times create strong crypto.
- Strong crypto creates good times.
To the linked article: the whole thing is mostly a big PR disaster for Ledger, even though what is said in the article is technically true.
At least in Trezor when you do a firmware update, it wipes your seed from the device and you have to reseed it (maybe not with every update, but I do updates so rarely that there is always a change in major version). That is the moment when rogue firmware could send the seed to the attacker. Such activity would be fairly easy to spot, which would ruin company's reputation and wipe their future profits, but technically it is possible.
Yeah, that's why you don't set up such service and if you do (because you prefer to extract money with bogus service instead of offering solutions that make your product easy and safe to use even for the least tech savvy customers) you place one part of the recovery with a company in Singapore, second in Switzerland and third to be held by customer's lawyer.
For example the kind of terrorism when you send couple of bucks to help Canadian truckers protesting against their basic rights being violated :o)
It's all about the process of developments and learning over time governments will realized they can't control or forced users to stay away from decentralization so they have only solution that Is adoption of decentralized blockchain and cryptocurrency
Hive is so cool I couldn’t help but also relate it to the ledger situation in my post, how no one authority can solely enact changes to the blockchain, On Hive, such situation is impossible. The platform's decentralized nature ensures that any significant changes would require community consensus. it's the users who hold the power, not the platform creators.
That is the great thing about the crypto community. They keep trying. Find ways to end run whatever problems exists. Keeps going.
But people keep saying that the electricity or the internet is going away, and where will bitcoin be then?
Still waiting for the floating island of ComputerLandia. Great idea politically, really bad idea physically.
What i hate about Ledger is... they implemented the gateway, now it is just a tiny switch to have everyone's key phrase to be sent to central command. Whether ledger does it, or some kracker.
MAGIC THE YU GI OH!!!!!!!!!!!!!!!!!!!!
This year looks so much like 2020 imo and not that much as 2019 as I would have expected. Some are saying on Twitter that we could see a new ATH this year. Doubt that but wouldn't be amazed if 2024 would be "the year".
Still protesting against Twitter, huh?
Staying one step ahead of regulators is one way crypto comes out on top eventually
I expected a few slivers... I'm calling clickbait!