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I haven't withdrawn any crypto to my bank account since March during all the crypto bank collapses.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.