How America is Losing the Bitcoin Arms Race

in LeoFinance5 months ago

We can point to so many different moments throughout history where a number of countries were involved in various types of arms races. Whether you’re looking at a nuclear arms race or the race to the moon, there are many insights to be gained by comparing the technological competition between today’s leading countries to the historical events of those “race for progress” moments.

As some key figures in crypto have said: Bitcoin and cryptocurrencies are leading the charge for a separation of state and money.

As it stands (for pretty much all of history), currency has been controlled by the governments who issue it. They create a currency for their people and for the most part, they control everything that follows. The rise and fall of currencies is definitely a topic worth exploring, but I won’t digress into that in this post.

Right now, the U.S. and nearly every other country out there are engaged in a currency arms race. As it stands, Bitcoin is viewed differently by different countries. Each has a unique perspective on what Bitcoin is and what it truly stands for and will stand for in the foreseeable future. The more important issue to focus on, however, is how these countries are proactively planning their future under the context of a successful Bitcoin network.

Bitcoin is now the largest global computing network in the world. It’s a force to be reckoned with in terms of being a network but as time goes on, it is increasingly being viewed as a true store of value and the official currency of the internet. This isn’t me saying that it’s the currency of the internet, this is a statement coming from many elite members of our global society, including Jack Dorsey of Square and Twitter.

How the U.S. is Falling Behind

There is a lot of news about crypto regulation today as the United States Commodity Futures Trading Commission (CFTC) has just published a statement about their strategic plan to embrace digital assets, support innovation and properly regulate this burgeoning industry:

“We will develop a holistic framework to promote responsible innovation in digital assets” CFTC

While this is mostly a bullish thing for crypto (and as of the time I’m writing this, crypto is rallying a few %), this just furthers my belief in the lack of execution on behalf of the U.S. Government to support crypto adoption. This isn’t the first time we’ve heard the U.S. say something about supporting innovation while protecting investors from fraud and it definitely won’t be the last. The issue that I have is the actions and pillars that are in place today.

This issue of crypto regulation in the U.S. is well documented and as it stands today, it’s a major pain in the ass to be involved in crypto as a U.S. citizen and even worse if you are a U.S. based business or a potential U.S. based business that is trying to initiate the startup process.

Regulation is fuzzy at best, there is a history of huge fines and little leniency and more. From the perspective of someone who wants to operate a crypto-based business in the United States, it seems like the government is trying to make it as hard as possible with the goal of ultimately driving the innovators to other countries who are open to innovation and who’s actions show a friendliness to crypto developers/businesses in general.

"During [a Unitize Panel on July 7], the speakers highlighted the lack of clarity around cryptocurrency taxation in the U.S.. According to the tax experts at Coinbase and Fidelity, the uncertainty is a result of the complex nature of digital assets as well as a huge variety of different types and features of different coins.” CT

Where do Other Countries Stand?

This idea that other countries stand more so on the side of innovation and cryptocurrencies than the U.S. can also be seen in places like Japan. Another breaking story today is that Japan’s new commissioner of financial services is going to be Ryozo Himino — a well known “crypto sympathetic”.

So while other countries are making actual progress in the support of and actual incubation of cryptocurrencies and Bitcoin, the U.S. keeps putting out what can be referred to (in my opinion) as “letters of intent” rather than measurable progress.

As we mature through the process of the Bitcoin/crypto arms race — where countries vie for innovation in the digital currency realm and ultimately adopt Bitcoin as the global currency of the internet — where will countries like Japan end up versus countries like the U.S.?

My opinion is obviously less valid than those of people who actually deal in crypto regulation first-hand. When you look at exchanges, the heads of Coinbase, Fidelity, etc. the common thread keeps getting pulled and is lingering in the face of the world:

The U.S. is driving crypto innovation out while other countries are welcoming it in with open arms.


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I agree that usually the early adopters of a trend end up gaining the most out of it and hold majoritary power. History has shown that inovators always win long term, while those who stood on the side just took the crumbles.

Absolutely. The power is innovation and many are watching US regulators and are realizing that they are hindering the growth and innovation of emerging industries. The worrying realization is that people/startups can easily pickup and leave America for better environments and more welcome arms. It's sad to see a country built on freedom and innovation being brought down to a level of stagnation and missed opportunity

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The world would need a Benjamin Franklin of crypto. That would shake things up. Once thirsty for freedom, people now conform. The worst form of slavery is that done out of pure will. And it's the one which lasts the most because the slave is not unhappy with his loss of freedom.

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Coinbase announced they are expanding their international operations because they see that is where the growth will come from. The United States is not losing the arms race...it is already lost.

Things move so quickly, when there is a new technology, the early adopters get out in front. No matter how fast the trailers move, they simply cannot catch up because the front runners keep advancing at the same speed.

The United States is married to the bankers and that will be its downfall. Approaching the 21st century with rules that were established in the 20th century is not a smart idea.

But what can we expect when the political leaders are fossils born before color television was mainstream.

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Yeah I've been reading a lot lately about how companies like Coinbase are taking their focus and shifting away from the U.S. market and toward the international ones.

Over the past few years, many crypto companies have been trying and failing to get products/listings/etc approved by US regulators and its inevitable that they'll go to greener pastures. The Winklevoss twins are another example of getting swatted away by regulators as they've tried and failed to get approval on several different Bitcoin ETF listings.

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Bitcoin is a fools coin (as are mosh cryptos). The long term useability is limited, the amount of bitcoin compared to the population is insufficient for mass adoption and that is just a few of the issues. Now I do believe bitcoin is a great alternative for some but not as a main currency.

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More likely we will see a multi crypto currency approach. BTC seems best suited to savings while others are better suited to day to day spending. I agree that BTC is ill suited for large scale adoption. This is why a multi-currency approach is likely.

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