Cold War theory, Domino effect and how it is connected to mass adoption of crypto

Cold War theory, Domino effect and how it is connected to mass adoption of crypto 

A domino effect or chain reaction is the cumulative effect produced when one event sets off a chain of similar events. And this is exactly how crypto market works. People buy cryptocurrency, profit from it and tell their friends. First they are skeptical, then they hear about crypto again and again. At some point they decide to join and the market is bullish stage so they profit easily. More and more people are coming and the number of crypto keeps growing rapidly. Then there is a correction that sets dominoes to fall in opposite direction.  

Domino effect model is also explains other events in crypto land. The more people join crypto, the more media attention it gets. The more media attention crypto gets, the more laws and regulation we see as government can’t ignore it anymore. Regulation and media attention accelerate user growth.  

The problem is the dominoes can fall in both directions. Negative coverage and regulation FUD push the process in the opposite direction. At this point we see bulls fighting against bears. 

The domino theory was a theory prominent from the 1950s to the 1980s that posited that if one country in a region came under the influence of communism, then the surrounding countries would follow in a domino effect. The domino theory was used by successive United States administrations during the Cold War to justify the need for American intervention around the world.  

Ideas of blockchain are very different from communism, but they spread very similar. From one side of dominoes line we have countries like Japan, who give a positive movement. Japan sees potential in crypto and embraces benefits for own economy. Countries like South Korea, Singapore and many others see it and follow the same path. The more countries adopt cryptocurrency regulations, the more others will join. On the opposite side there is Chain who pushes dominoes back. The main question is who pushes harder?

China is very unique country. It is the only state that can actually fight cryptocurrency. The Great Firewall of China can actually block accesses not only to exchanges, but actually to any news sources about them. It can’t actually block the blockchain itself (and they don’t want too). I don’t see China pushing as hard as it can. At the same time other countries who may want to do the same can’t as they don’t have infrastructure for this. Russian government blocks sites with illegal content every day (mostly torrents). Do you think it stops someone here from using them? The same will be with crypto. World governments are not blind. They understand that can’t really win the fight, and so they will look to align with crypto on their turns. 

Disclaimer  

I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose. 

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