WHY WE SHOULD FIGHT AGAINST BITCOIN AND CRYPTOCURRENCY REGULATION
Regulating bitcoin and cryptocurrencies seems like a great idea to make it an official recognized currency right? Wrong. Regulations empower who, the people or the government? That's right, if virtual currencies gets regulated and controlled by financial institutions, it’ll just become another common currency in the eyes of the law. Regulating its use, we risk losing its true value: decentralization. By having laws that control cryptocurrency, it becomes a centralized authority and will crush cryptocurrencies primary goal: to reach a democratic and transparent form to exchange goods and services without third parties. I believe in the beginning, there will be doubts about value but over time, and I do believe in a very short period of time, demand and scarcity will level out its value among the people that exchange goods and services. The creator of Bitcoin and the Blockchain, Satoshi Nakamoto have shown us that we are capable of creating decentralized systems not only in currencies, but in softwares as well. For example, with blockchain, we can create a transparent, untamperable and credible voting system in which fraud would be impossible.
If we allow the government to control this open source system, we lose all of its values. Technologically speaking, they can't control the P2P system unless they shutdown the internet, which they obviously won't because that would mean shutting down global/local economy. Financial institutions have taken an interest in blockchain but that still won't empower the people as they would have private blockchain that only they control, meaning they are the only ones able to make the rules and control what information can go through. We are all aware of banks control of the economy and not to mention the Federal Reserve which is a private financial institution controlling the worlds supply of money. This may seem like a good thing but they have governmental influence more than you think. This financial innovation can be compared to when the printing press was invented. Powerful people wanted to keep people ignorant at bay because they wanted to maintain control of the world so there were many laws passed to prevent it from spreading. They knew that if people learned to read, write and transmit knowledge, they would lose their reign. Netflix, Airbnb and Uber are all innovative technologies that we can all clearly see are MUCH better services than tvs, hotels and taxis. As you can notice, there are laws being passed all over the world to try to stop these technologies from advancing into the economy because it threatens certain people that have power over them.
The next to suffer are the bank tycoons. They are the most powerful entities in the world because they control money and we all know that's what makes the world go around. Banks and financial institutions have a tremendous amount of power, more than politicians if we think deep enough. What do you think would happen if a powerful bank that moves around even 5% of the economy through transaction processing and credit providing? The economy would collapse, stores would close, unemployment rate would sky rocket.
But what if you could be your own bank? What if we controlled the economy and society came together and we didn't need a central leader but rather a consensus that can make decisions thinking as a whole instead of only the benefits of the few? That would be a tremendous change in society and would give the people more power because lets face it, a president or a small group of senates cannot represent hundred millions of people. We all have different opinions and we must learn to respect and accept each other to create a true democratic form of living. If cryptocurrencies get regulated, all of these important societal aspects are in jeopardy. The elite force do not govern for the people, they govern for they're own economic interests. They want us to continue being sheep's so they can do as they please. Lets stand up for whats ours, the world. We are powerful. We are united. We are not anonymous and our voices WILL be heard.
Very helpful seeing another point of view. Thank you!
While I get what you are attempting to convey, I do not believe believe that you fully apprehend the fact that for any crypto currency to ultimately be accepted into the mainstream . Some form of regulation will end up existing. There is a lot you can do with Crypto cyrrency, but you cant pay your mortgage with it , and we are not yet at the point where anybody can walk into a store and make purchases with it. My thoughts on the subject are not unique. Andreas Antonopoulos has correctly opined Bitcoin needs a fusion of elements to be accepted globally.
First it needs to be easily accessible and useable by anyone. Second it needs to become so common as to be accepted anywhere. Third a currency needs stability. No one wants to use a currency that does not have a consistent valuation. Imagine taking a dollar this morning and buying a loaf of bread. Then going to the store at noon to buy another loaf of bread, and discovering that the same dollar may buy 5 loaves of bread, or in the worst case scenario it will not buy any bread at all. Without some form of regulatuon or governance the former will never occur.
While I understand your point of view, I don't agree with the fact that it needs to be regulated, even though I believe it will. I do agree that it needs to be easily accessible and that will never happen due to security concerns of people that don't have basic knowledge of technology. But this can be achieved through a classroom. However, that can be achieved through a bitcoin "bank" BUT the best feature is that no one would control this bank, it can be achieved through consensus just like BTC. It needs to be politics resistant. There are other ways of knowing about tax evasion (yet it still occurs). The main reason I'm against regulation is because right now, banks are the biggest monopoly of currencies. The federal reserve is the one who calls the shots and that's wrong, the whole world is practically controlled by them.
When you mention stability, the scarcity of a cryptocoin will take care of that. When it reaches it's maximum number of available coins, supply and demand will bring it to a stable value. Right now, the U.S. is in a trillion dollar debt because it can't back up how many dollars exist in gold because too much of it was printed.
You are partially right and and mostly wrong. I will say that DeCentral has made a step in the right direction with Jaxx. Scarcity is only part of the stability formula, for a crypto currency . Volatility does not not make a currency stable no matter how rare it is. To truly be used as a currency and not a medium of exchange . The volatility must be minimized.
I agree with you on Jaxx. What would you consider other important factors for price stability other than scarcity?