The US Is Going To Trail With Crypto Innovation

It is evident the Biden administration is intend on reigning in cryptocurrency. This is following the Trump administration that was heading down the same path. Neither was crypto-friendly and now we are entering a period where things are going to get hairy.

We are in the middle of a shift that is tetonic in nature. What is taking place is something that cannot be stopped yet the arrogance of the governments knows no bounds. The US Government, the most arrogant of them all, believes it can take control of the situation. Of course, they are likely taking their cues from the banks. Either way, this is not going to end well for them.

A few decades ago, the United States was handed the biggest get out of jail free card you could imagine. It was at the forefront of the Internet era. This was an innovation that was basically developed by the US, a fact that game it a commanding lead. Other countries, such as China were forced to play catch up. This did not go well for them during the first decade plus. It is only in the last 10 years that it got to the leadership level.

Of course, the EU never caught up and is still sucking wind in this area.

Are we going to see a repeat? Most likely yet this time the US is going to be the ones trailing.

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Its The Technology Stupid

People focus upon the monetary aspect of cryptocurrency. This is the mistake, that was brought on by those within the industry themselves. Now that the likes of Elizabeth Warren are up in arms, the regulators are going to crush this.

Of course, cryptocurrency is not a monetary innovation. While it has that component, it is really the technology behind it that is so powerful. At present, this statement is being made with the understanding we are still in the early stages.

The truth of the matter is we have no idea what paths innovators and developers will head down. Smart contracts could end up taking over the legal system. One major lesson from the Internet is that we do not know what will be the winning path. After all, in 1995, how many foresaw Twitter being a major use case for the relatively new technology (at that time)?

Blockchain and cryptocurrency, two different technologies although interwoven, can be profound. This is as technological as it comes. When people talk about Web 3.0, they are not just referring to a new form of social media. It is something so much bigger. Visionaries foresee it completely reworking our digital world. Many feel it will spill over into the physical.

Will their forecasts come true? Time will tell.

One thing that is evident: if the US continues down the present path, it will not share in the technology. There will come a point where the major innovation comes from areas outside that country.

Silicon Valley Turning Into A Sh*thole?

Innovation is a finicky thing. Technology is a double-edged sword. While it is vital to become a major player, even assuming a leading position, the role at the top is build on sand.

The pace of advancement is breathtaking. Right now, innovation can come from anywhere in the world, especially as it pertains to online activities. Anyone with the technical skills, a laptop, and Internet connection can create the next major breakthrough.

No longer is centralization necessary for technological success.

Naturally, we are still in a world that has not adapted to the new reality. Venture capital money is still the major source of funding. That might have suffered a blow the last couple weeks as one of foremost banks in that area went under. How much of an impact will this have on start ups who required funding to get to the next seed round?

We already see a lot of technology heading to Texas. This is just one step removed from leaving the country. No longer is anyone obligated to set up camp in Silicon Valley.

What was the technology center of the world might be losing its title.

Cryptocurrency Is Global

Where are the developers?

Take those who are working on things tied to Hive. Where are they located? The answer is obvious. We have people all over the world.

The stark reality is that cryptocurrency is already global. It never resided in the physical world, thus was international from the start. Cryptocurrency goes anywhere the Internet does.

Here we see the mistake of the United States. The government, or more importantly the politicians, believe they are at the center of the universe. This is not the case. We could see second world countries stepping up because they embrace cryptocurrency and understand how it can usurp tyranny.

Of course, who excels more at global tyranny than the United States Government?

Cryptocurrency does not need the US for innovation. This is not the 1990s where developers were very rare. At that time, these were people who were small in number, educated at the finest institutions in the country.

Today, developers are all over the place. Python, MySQL, and C++ are common programming languages. You can find people skilled in these in most countries.

As the USG starts to clamp down on cryptocurrency, we will see the moving offshore. This means that innovation will not be present in that country. It is not a situation that bodes well for its citizens.

Nevertheless, someone is going to benefit. It is too early to tell who the big winner will be. So far, nobody has stepped up as a crypto-hub on a mass scale. That will happen.

If the United States had any lead early, it is doing its best to eradicate it. Could this be a major windfall for countries in the East? We will have to see how it all unfolds.

One thing is clear: there will be a major crypto-hub where companies assemble and form an innovation center. Like minded people tend to assemble.

Any country that realizes that while positioning itself to take advantage could end up being the leader in the next few years.

The only question is who will step up?


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Certainly going to be interesting to see how it shakes out. In some ways I think the politicians are scared of the power it gives to people but at the same time they are arrogant, thinking they can control it like it was a petulant child.

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In some cases, in the most liberal and naive interpretation of the action, we could claim that these regulations are being in place to protect people from fraud in cryptocurrency, which is quite rampant and does tend to prey on the uninitiated.

But let's be honest... that's a flowery view. It's simply going to halt the progress of the technology. For the few that will be protected, we'll lose out far more as a whole. The politicians are certainly scared of the disruption this will cause, and it's in their best interest to halt it. The new generation will have to be the one to step into the shoes of the older politicians, and make changes which are friendly towards this technology. Unfortunately, by the time this happens, we'll already have fallen far behind the curve.


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They have no choice, they can only procrastinate, but just as e-mail has largely replaced traditional mail, mp3 files have replaced CDs, cryptocurrencies will replace traditional banks and DAO will replace many corporations. "The die has been cast"

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It's going to be tough and I definitely think that most governments will clamp down on crypto. I don't think many will follow the route of El Salvador and be more crypto friendly. However, I do think a few countries will continue to be more crypto friendly if El Salvador works out.

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Their have been a lot from the U.S government with crypto recently, just hoping this won't bounce back on them in future

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I concur. China surpassed the US in P2P payments and "super apps" ages ago. WeChat & AliPay had messaging with built-in P2P payments using the CNY more than 10 years ago. The US still doesn't have such an application in the legacy system. PayPal has no messaging feature, nor does CashApp or Zelle. It's all years behind and that gap will only widen over time.

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