IT BEGINS !!

I think, Covid was a blessing in disguise for many people to take stock of their own lives and to seek other avenues of income and investment vehicles. Crypto was in the right place at the right time. In some aspects, BTC has shown just how vulnerable governments are when they sense they are losing power and control. What do they do? Become heavy handed. If they do try to close the many exchanges and use banks as a way to prevent people from moving funds, they will fail miserably. India has already failed once before. They will fail again. That will cause anarchy and even more distrust.
Already, many are waking up to the fact that their savings sitting in a bank earning bugger all interest is a zero sum game.

The crypto and digital network space is here to stay and there is no government that will be able to stop it from moving forward.
The only thing that governments are really good at, is spin doctoring using mainstream media outlets.
Sure, that will cause anxiety to the ones that have weak hands and bail out. However, it will only strengthen the mass adoption of Btc and the best crypto projects that will remain after the carnage.

I don't think it will ever be valued as a currency.
However, I do believe it will be valued as an asset.

What I have noticed since I was in the crypto space from 6 years ago, is the level of maturity that the crypto space has grown, in particular, the block chain technology and the staggering amount of corporate investment which is flooding into the various development area projects.

Everything from Finance, e-commerce, logistics, data collection, gaming. It is simply staggering.

I don't have a crystal ball as to government finally looking at ways of adoption, or if they are stupid enough to go all out on a digital war.

If they were smart, they would choose the first option.
Going on history, they will use the heavy handed approach first.

Hope I am wrong.

Cheers Markco2
 
Smart government strategy for innovative Western countries :-

1. Regulate local exchanges (the fiat gateways) and enforce KYC to prevent money-laundering and tax evasion
2. Insist all transactions are reported taxable in terms of their value in local fiat currency (regardless of whether they are actually conducted with fiat)
3. Treat cryptos as Assets subject to capital gains taxes and thus every transaction becomes a CGT event

Then if they debase their local fiat currencies and there is a significant move into crypto they get a significant tax windfall (from the CGT on crypto appreciating against the debasing fiat) without losing full control of their tax base and without holding back technological progress.

FWIW I think Australia seems to be heading this way and while the compliance for us on the bleeding edge is a bit of a pain, the tools will come and I'd much prefer to see this than for them to try and ban or repress the technology.
 
BuggedOut said:
Smart government strategy for innovative Western countries :-

1. Regulate local exchanges (the fiat gateways) and enforce KYC to prevent money-laundering and tax evasion
2. Insist all transactions are reported taxable in terms of their value in local fiat currency (regardless of whether they are actually conducted with fiat)
3. Treat cryptos as Assets subject to capital gains taxes and thus every transaction becomes a CGT event
Click to expand...

What you are suggesting though basically would put Bitcoin on an even footing with the Australian dollar. Right now, most Aussies don't believe that it is. If BTC did become on an even footing, I think it would have consequences for monetary policy that wouldn't be entirely pleasant for Australia's debt-laden economy.
 
wrcmad said:
Agree with you 100%.
However, the hypothetical that "If fiat wasn't around any more ..." will never come to fruition. The Gubmint would lose control, so they won't let it happen. Thus, we are left with the status quo that fiat will always be used as the measuring stick.
While I also agree the devaluation of fiat is a race to the bottom ATM, the devaluation risk of BTC is but a mere passing of legislation too.
Click to expand...

I don't know exactly what is going to happen. I'm not sure if I have said Fiat is going to disappear, if I have, then I was probably feeling a bit too enthusiastic at the time.

My best guess at this point in time, which isn't actually my guess I just got it from someone else who is very knowledgeable, is that the future will be CBDC's and Bitcoin side-by-side. Up until now all currencies have been a monopoly within their jurisdictions. This will no longer be the case and people will have a choice between the government CBDC and Bitcoin. This choice will keep monetary policy under control and prevent the extremes we are witnessing today. You can do pretty much anything you want when you have a monopoly, but when you have to compete, it's a different story. That's my hope anyway. We'll see how it all plays out.

Edit To Add: I disagree with BTC devaluation being a legislative risk, due to the fact it is a global currency and there is no global legislature.
 
you got anything on Gelato @dozerz ?

Disclaimer - anyone looking at the defi landscape do some research, tread with care, its the wild west and there have been a couple of rug pulls.
 
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Anyone else here use acx.io? Seems lots of people are having issues not being able to login. Some rumours of liquidity issues and business failing but I don't understand how an exchange can have liquidity issues, let alone how they can keep peoples btc.
 
mmm....shiney! said:
@wrcmad just ask yourself how often the government interferes in the share market, that'll give you some indication of how it is going to deal with the crypto market when it comes to investors.
Click to expand...
Uncanny timing:

Bitcoin tumbled Tuesday from its record-breaking run after US Treasury Secretary Janet Yellen warned that the "highly speculative" unit could be used for "illicit" purposes.
Yellen told the Treasury’s financial sector innovation policy roundtable “the misuse of cryptocurrencies and virtual assets is a growing problem.”
“It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering,”
Yellen said: "You're absolutely right that the technologies to accomplish this change over time, and we need to make sure that our methods for dealing with these matters, with terrorist financing, change along with changing technology.
"Cryptocurrencies are a particular concern. I think many are used - at least in a transaction sense - mainly for illicit financing.
"And I think we really need to examine ways in which we can curtail their use and make sure that money laundering doesn't occur through those channels."
Yellen joins a a growing chorus of regulators who have given their thoughts on the cryptocurrency as it climbs to dizzying heights. Some regulators, such as ECB president Christine Lagarde, who last week said Bitcoin had been used for some "totally reprehensible money laundering activity", believe it should be regulated on a global level.

PS. Never thought they would consider it an environmental hazard??!!! WTF?
 
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