Governments Drawing The Lines Regarding Cryptocurrency
Cryptocurrency is changing the world. Many are still trying to figure out what is going on and where this all fits in the overall financial future. For this reason, we see strong division.
For many cryptocurrency is about freedom. It brings a means whereby one can improve his or her life. This idea of inclusion in financial matters is novel for many.
Of course, this got the attention of the authorities. Politicians all over the world are taking a stand. For many, they see this as a threat, hence opposing it fiercely. Calls range from regulation to outright bans.
This is pitting governments against each other. Decisions being made now could have major implications on these economies going forward.
Marc Andreeson compared cryptocurrency to the formation of the Internet. He claims that he never made that comparison before about a new technology. That is how powerful be believes this will be.
If that is the case, some governments are taking a stand against something that might be as commonplace as the Internet in a decade or two.
New York Looking To Ban
Within the United States, we see division among the states. This is really going to get interesting as the population starts to line up for or against cryptocurrency.
New York made headlines with a bill that is seeking to put a moratorium on cryptocurrency mining. Because of the power consumption used by Proof-of-Work networks like Bitcoin, the state is trying to stop the practice. This is, at least, until the impact can be researched.
The bill passed at the 11th hour of the state session, making it the first state to ban cryptocurrency mining. This is presuming the Governor signs the bill which is expected.
The state Attorney General was one of the big proponents of this move. This is not enough though.
Letitia James issued an alert discouraging investors from getting involved with cryptocurrency citing their volatility.
This is not going unnoticed by crypto proponents. Kevin O'Leary of Shark Tank fame, called states like New York uninvestable due to their stances against cryptocurreny. According to him, these states are going to look a lot of investment and capital due to these decisions.
Could we be seeing the downfall of these areas? Imagine if they banned the Internet. Even a 5 year move in that direction would have severely hindered their economies.
El Salvador Benefitting From Bitcoin?
Many governments are taking a positive stances towards cryptocurrency. The leader in this area is probably El Salvador. The country made Bitcoin legal tender last year.
According to their most recent stats, the country saw an increase in tourism, construction, and private investment. Is this due to Bitcoin? It is hard to tell.
However, we do see these figures:
- Tourism up 165% from the same period in 2021 ($236.5 million)
- Private sector investment of 18.4% of GDP (45.29 billion), the highest level since 1960, up $1.44 billion
- A $1,2 billion investment by Invictus Investment group to build 5 five-start hotels in the country
While Bitcoin proponents are not claiming that all of this is attributed to the move to legalize it, they are stating that it is impossible to deny that some of it is not a result of this action.
It does appear to provide El Salvador with a positive economic benefit. The country got global attention due to the legalization of Bitcoin. That alone might have started to put the country on people's radar.
Either way, the numbers are looking better for this nation.
Bermuda Seeks To Become A Cryptocurrency Hub
We heard this claim by many areas. Mayor Francis Suarez of Miami made the statement last year. Ironically, so did Eric Adams, the eventual Mayor of New York City, during his campaign for office.
Not to be outdone, Bermuda is seeking to attract cryptocurrency business by working towards a comprehensive regulatory framework.
The island nation is long home to foreign businesses. It is a haven for the insurance industry. Adding cryptocurrency to the mix only makes sense.
As Bermuda remains one of the countries that has decided to approach the digital asset in an embracing and positive manner, the country could become one of the forerunners in the decentralised finance sphere.
Unlike New York, this nation is taking an aggressive approach, trying to get ahead of the competition. Cryptocurrency is a global movement that resides entirely online. Thus, those governments that see the potential and position themselves properly can benefit.
Of course, the opposite is also likely true.
The Globalization of Real Estate
Many developed nations are having demographic issues. With aging populations, they countries are going to have a difficult time maintaining their economic levels as consumption diminishes.
At the same time, there are major advancements in technology that are changing the nature of work. People are seeking to work remotely and this is only gaining momentum. Over the next decade, we could see people starting to migrate based upon factors other than jobs. After all, if you can earn a living looking at a screen tied to the Internet, you can do that from anywhere.
This is ultimately going to lead to the globalization of real estate. People are going to move as a result of this.
Cryptocurrency is likely going to create hundreds of millions of digital nomads. These people will also feed into this process since they will be able to live anywhere.
Suddenly, governments are going to have to compete, not for businesses but, rather, individuals. It appears that those which take an early adoptive stance towards cryptocurrency could be positioning themselves to gain from this shift. It is likely to start being a noticeable trend during the 2030s.
The reality is that physical location is getting less important. In fact, we might see the end of the nation-state this century. Governments are going to have to compete for populations as people stopped being locked in to a certain geographic area. With cryptocurrency, we are seeing a monetary and financial system that will span the globe. Countries that take an aggressive stance and start reaping the benefits could enhance their appeal over the next decade.
This is why the lines being draw could have serious implications going forward. Digital nomads are free agents and there are going to be hundreds of millions of them hitting the market in the next couple decades.
Cryptocurrency is one of the things at the core of this. Politicians would be wise to wake up to this fact.
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Good reflective blog. When I returned to my Venezuela to do some paperwork I was surprised to see how people were also accepting cryptocurrencies even without the consent of the government and I thought at that moment that it was reflecting the future of what would be the world of FIAT currency as we know it. We are still in our infancy on this subject but I am very sure that when the time comes and cryptocurrencies reign as a means of payment in our transactions governments will be reduced to nothing.
We live in a way world where you can never satisfy everyone and cryptocurrency at the moment is facing such issue as we have those that support it existence with those that don't but what I believe is since cryptocurrency means no harm but changes situations positively, it presence will definitely be accepted by all sooner or later.
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Some governments are seeing the potential and some are weighing it against traditional financial system. But, it feels that in them end the world has to ramp up with blockchain technology in order to benefit like they did with internet.
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what a good blog and interesting content @taskmaster4450, the era of cryptocurrencies is now, we see a great advance in these cryptocurrencies, in the future we will see them as a common and current form of payment here in Venezuela some of the businesses accept these cryptocurrencies and it is something very useful indeed.
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We are certainly in the 'fight you' stage of adoption, lol. They are pulling out all kind of shady tactics instead of just embracing it because they know their system is failing, it's their fault, and they want us to suffer for it. Well I for one will not stand for it any longer. I do not recognize any government authority as having any control over my life, I will do what I want with my money and my data, and they can really kiss by big butt.
I feel more people need to have this stance. I don't understand why people think we need to be led like little sheep by some corrupt leader... I don't need anyone telling me what to do.
We will win this fight, it's just a matter of time.
We're surely going to win the fight. I'd say what we view as developed countries in few years will change too. These small nations that adopt crypto will have huuge improvements coming to them. These are the future Singapores!
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Yeah unfortunately the US is so far gone that I am just like whatever, they don’t have the resources to come find me, lol. It’s all political theater.
They do have resources. But they are running out of them. There's too much bureaucracy messing everything up. They've got a super inefficient system there. That's true for most of these legacy brand countries. they are kind of dinosaurs at this point.
!PIZZA
Well when they can’t stop actual crimes and let violent criminals out of jail, can’t stop the masses from crossing the southern borders, let whole cities basically burn, and I can really keep going, yeah, they don’t have the resources they want you to think they do. It’s all smoke and mirrors.
Aren't the political agendas the reason for most of the stuff you mention? They are sure as hell incompetent. But not for lack of billions 💰💰💰
What they can accomplish still hurt lots of folks. Imagine there weren't all these rules and regulations against crypto. We'll have way more adoption and healthier economy. Some people couldn't join ICOs because they were in some jurisdiction. XRP went through so many dumb stuff. Governments are dealing real damage here.
Economics are still against them. So I'm optimistic for future. They're causing huge brain drain too. Builders will build & these crooks will eventually run thin in resources.
!PIZZA
Yeah they are trying to collapse the system. So that's why we need to just build our own and give ‘em the bird! That was the whole beginning idea behind Hivelist in the first place was to start something new in e-commerce that is not trying to screw people over and let people build their own businesses in a new economy.
I think regulation was inevitable and nothing can be done on that front. It's just how many current investors in cryto will become snitch and may sell out the decentralized projects when govt gets tight is one of the question. I hope that Ethereum and BTC stays outside control of any govt project because if these two titans collapse, the industry is done for.
God i love the idea of freedom. It is awesome being part of what will become the new way. There are many possibilites to this wild and free way. I am so grateful to belong to our Hive community as this unfolds to. Many directions, layers and possibilites are there for the taking. ❤️
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I am a bit surprised to see New York ban crypto mining because wasn't there a huge BTC or crypto mayor in NYC? I guess the state doesn't really care and I honestly think the energy argument falls flat. There are a lot more things that waste far more electricity.
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Those are some positives for El Salvador, whether Bitcoin is a contributing factor which I think it is or not the country has done well in attracting mixed attention.
These guys are becoming clowns, they are funny for not getting the fact that crypto can't be stop and their opinion counts less. It is now over a decade since we have Bitcoin/Crypto, the longer it lives the harder it becomes to stop as it keep spreading.
For the nations that get it, may they lead the towards adoption and for those choosing to be stubborn and ignorant may they set themselves back its a choice for or against.
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I don't think they may hold onto it banning it for a longer time.
Coz crypto is now a reality.
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This just shows there will always be two sides to a coin . As some governments seek to at all cost impend the adoption of crypto, other government see the outstanding potentials of the blockchain technology and do all possible means to embrace it’s adoption.
Although it may not seem like it to many, that is true, Cryptocurrencies came to change the paradigms in terms of money. Now some want to limit its use since they cannot dominate us and that affects them a lot since it is not what they were used to
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To be honest there are more efficient ways of mining crypto. But the other thing to consider is the massive value bitcoin has brought including jobs and infrastructure built around it.
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I see cryptocurrency fulfilling politicians' promises that they don't have the intention to implement. What is funny among those who oppose it is that they are really very creative in fabricating numerous reasons to discourage people from engaging in crypto. I hope the time will come and I wish it will be sooner that opposing cryptocurrency will be considered political suicide.
Perhaps, the anti-BTC will do their best to find the real reason for the increase in private sector investment in El Salvador. Such a growth that you described as the highest since 1960 is very difficult to find any other explanation for there is nothing significant happening in the country that can explain such growth except the legalization of BTC.
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100%
I see cryptocurrency as a future technology like the internet, but bigger. The internet is still growing and cryptocurrency is going to develop on it, within it and on extensions of it built just for cryptocurrency.
I don't see cryptocurrency going it alone without the internet, although there are areas which may develop using cellular phone networks in a decentralized fashion and a centralized cellular phone provider providing the final connection to the internet for recording transactions, similar to the rationale behind Rollups and Ethereum.
The future is coming, and governments are afraid of it, so they do what anyone is afraid doe. They assume the worse and prepare to defend and protect themselves against it. We will see how that pans out..
@shortsegments
:)
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It is really difficult for governments to understand that thanks to cryptocurrencies, people are no longer tied to a geographical space in our jobs (or in any sense), but I think that as the years go by they will be forced to understand it, because the reality will prevail and therefore, they will not be able to ignore that fact that will be more and more obvious and evident: Cryptocurrencies have changed the world and people and have come to stay.
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Great article. I'm finding it fascinating how differently American states are dealing with crypto.
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It's cool to see all the chaos and competition. Some of these old guard countries like USA will take a hit because o their dumb regulation. This is good news or developing countries. I feel like many of so called developed western nations are becoming like Blockbuster or Yahoo!
!PIZZA
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