For years, the price of a single bitcoin was rather negligible. People believed that it was simple “internet money” with no applicable uses and no future whatsoever. Heh, as a matter of fact, despite the price slashing 12k, some still think so. Going so far as to call it a bubble, looking at you Jamie Dimon. Then on the opposite spectrum, you’ve got guys like Roger Ver.
The beauty of the bitcoin is that anyone can send and receive it, in any amount, anywhere, without having to tell anybody why. Coupled with the finite amount, and the attractiveness of the technology, a serious case for overwhelming demand and diminishing supply arises. And volatility breathes in the market like a fish underwater.
But the underlying technology is nascent and its nature is disruptive, so.
Politicians eyeing the bitcoin, and cryptocurrency.
Following Ethereums introduction to the world, all investors were provided with the opportunity to participate in the funding of tokenized projects via ICO’s (Initial Coin Offerings).
The mass availability and explosive growth of cryptocurrency options opened up doors not only for the growth of bitcoin and other coins but for bad actors as well.
However, government bodies quickly swarmed the market with regulations and frameworks. Who can blame them? The world of cryptocurrencies is a wild one. And investors can get hurt. So, governments are breeding regulations to protect investors, fight money laundering, illicit cryptocurrency uses, and to thwart human trafficking.
Recent regional regulator reactions.
Let’s start with Russia. As it stands now, over the past year Russian officials stated that they would jail people for using bitcoins. Referred to cloud mining and similar operations as unethical schemes. And now Russia aims to launch its own cryptocurrency. Putin, personally stated that cryptocurrency and bitcoin regulations must become tightened and more formalized.
China, a country whose miners are responsible for over 60% of bitcoins hash rate, has totally cracked down on crypto. They banned ICO’s and halted cryptocurrency exchanges from doing their business. To me, it seems like China isn’t even trying to regulate anything pertaining to the crypto world. They are just banning it because they fear this disruptive technology and the freedom it provides people with.
Japan, in contrast to China, is welcoming the cryptocurrency and bitcoin age with open arms. They are issuing licenses left and right to prospective exchange these days. Constantly trying to figure out how they can evolve the most sensible affirmative regulations that would push trust in cryptocurrencies forward. As a matter fact, Japan legalized the bitcoin.
Let’s look at the United States and their reaction to cryptocurrency mania. Over the summer, when ICO’s war rattling the world, the SEC came out with own statement labeling most ICO’s as securities. Now, they file charges against bad actors. But the U.S government is more interested in cryptocurrencies being used illegally. So, you’ve got agencies like ICE, The Financial Crimes Enforcement Network, and the FBI all doing their parts trying to stop illegal bitcoin uses. And bib reputable exchanges like the CME and CBOE will be listing bitcoin futures on their regulated platform form in no time.
Then you have some smaller countries like Belarus, which will be fully legalizing and developing a regulatory framework to handle their circulation and use.
What this means for the world and cryptocurrency users going forward.
All of this doesn’t mean that your government’s federal agencies will be sitting parked outside of your living room using a satellite to arrest you for buying something online using your cherished bitcoins. No. What this means is that government bodies aren’t ignoring the impact that digital currencies can have on their countries and citizens.
And this is what they can do. They can draft up frameworks, they can hand out licenses to exchanges, they can closely watch ICO’s, they can send out memos warning investors. But they can never, ever, fully tame the bitcoin and cryptocurrencies. In order to do that, government bodies would have to shut down the internet and keep it shut down.
Vladimir Putin addresses the whole situation with the most desirable choice of words.
“We need to use the Advantages offered by new technological solutions in the banking sphere. At the same time, it is important not to create unnecessary barriers”. – Vladimir Putin.
Also, here’s a great video featuring Joe Rogan and Andreas Antonopolous discussing cryptocurrencies. I gotta say I love Joe’s podcasts.
What are your thoughts? Where do you live and what are your regulators doing in terms of the bitcoin and crypto? Let us know!