Satoshi’s Dream or Satoshi’s Nightmare, After 10 Years Which One Has Bitcoin Become?
Bitcoin was created to be an independent decentralized financial asset. Surprisingly the very institutions Bitcoin was designed to work independently from are the same institutions breathing life into it.
- What are those institutions?
- What part do they play in crypto adoption?
- How much influence do these institutions add to crypto adoption?
- What are four of the major components necessary for crypto adoption?
Satoshi Nakamoto, the creator of Bitcoin, envisioned a new currency. A currency that would be free from the bureaucracy of governments. And free from the tyranny of the old world financial cartels. But in order for cryptocurrency to advance and gain value. Adoption of this digitized monetary system by the masses of people on our planet Earth needs to take place. Bitcoin and other cryptocurrencies are beginning to be adopted by the people of the world. But adoption has come with a compromise to Satoshi’s vision.
- Government endorsement.
- Government regulations.
- The enhancement of the banking cartel’s services utilizing blockchain technology.
- National economic failures.
These are the key factors bringing on the adoption of Bitcoin and other cryptocurrencies to the everyday lives of ordinary people. Satoshi’s creation was supposed to free Bitcoin owners from these institutions. Instead they are the same institutions that are bringing his creation to life.
In an address to the 73rd session of the General Assembly of the United Nations, the Premier of Malta publicly proclaimed cryptocurrencies are the “future of money.” The President of Venezuela recently added another incentive for the citizens of Venezuela to adopt the use of cryptocurrencies. Citizens of Venezuela must now pay the fee for passports and passport renewals with the Petro, the national cryptocurrency of Venezuela. The significance of that policy may not be immediately apparent. Consider this, now every citizen from Venezuela that has the means to travel to international locations will be equipped to purchase goods and services with cryptocurrency.
Venezuelan President, Nicolás Maduro, encouraged his citizens to be involved with the world’s 6 largest cryptocurrency exchanges that have been enabled to operate within the borders of the nation. Venezuelans are free to purchase other cryptos besides the Petro. Those directives from the Chief Executive of Venezuela have thrust the people of Venezuela into a state of crypto readiness. Making Venezuelans the 1st nationally sanctioned population of crypto consumers, everyone almost simultaneously, a tremendous accomplishment in the evolution of cryptocurrency adoption. Despite the unattractiveness of the Petro as an investment vehicle the people of Venezuela are at the leading edge of crypto adoption.
Globally accepted regulation of cryptos has become a hurdle that must be overcome as crypto adoption marches forward.
The US and China are at the forefront of this crypto adoption crises. The US has limited the level of participation in some crypto products for the unqualified investor. China has in effect banned its citizens from participating in cryptos. Yet the three leading manufactures of Application Specific Integrated Circuits (ASIC) specific to crypto mining hardware, Bitmain, Canaan, and Ebang, are owned and operated by business conglomerates based in mainland China. The United States and China are two countries with the largest population of consumers and investors when combined. The residents of these two nations when empowered to fully participate in all aspects of cryptocurrencies and blockchain technology will even further the progress of crypto adoption.
The regulatory environment for these two nations is still a work in progress. The financial market makers of the US are unable to create and offer exchange traded funds (ETFs) based on Bitcoin and other cryptos for the retail sector of investors, referred to as unqualified investors. Unqualified investors are individuals that earn less than US $200,000 a year or $300,000 combined income with a spouse. Or they have a total net worth less than $1,000,000 when the value of their primary residence is excluded. Market makers are awaiting the approval of ETF applications that have already been submitted to the financial overseers of America, the Securities and Exchange Commission (SEC). Meetings have taken place between market makers and lawmakers on Capitol Hill, in Washington D.C., to help install regulations for digital assets and securities.
China’s law making body has not made any public statements regarding any proposed legislation for Chinese investors. Although landmark decisions have been ruled on in the Chinese courts regarding the intellectual property surrounding the manufacturing of ASIC chips. Market makers, manufacturers, and investors from both nations are forced to wait for the regulatory environment to be in place before they can participate fully in all aspects of cryptocurrencies and their associated derivative financial products.
Mainstream banking is adopting blockchain technology.
The adoption of Ripple’s (XRP) xRapid payment platform by some banks caused the value of XRP to gain more than 70% in value within the last 30 days. Integration with the current banking system, surprisingly, is helping crypto adoption. Even though cryptos were created to be free from the banking cartels. The integration of blockchain technology, the underlying cryptocurrency, and their implementation in the systems of bank payments and cross border transfers has helped all parties involved. Banks have been enabled through the xRapid payment platform to move money around the world cheaper and faster than ever before. We have yet to see and understand the full scope of that achievement.
On top of the xRapid platform there is 5G internet which promises still more benefits with its high speed capabilities. The financial world is about to explode with technological advances. The entertainment world will be enhanced with the addition of 5G technology as well. The combination of rapid global payments and enhanced entertainment are still not able to be fully appreciated until we try it and become addicted to the new internet speeds.
Turkey and Venezuela have gone through some economic turbulence involving their national currencies. The currencies of both nations were devalued rapidly. This devaluation caused their respective citizens to run to cryptocurrencies in order to save whatever they could of there devalued nest eggs. The crisis catapulted the people into a state of crypto readiness. People with the financial means to participate in high value cryptocurrencies like Bitcoin and Dash have for all intents and purposes abandoned their respective national currencies, the Turkish lira and the Venezuelan bolivar. They have fully adopted the purchasing power of cryptocurrencies. This last example may be the situation many envision regarding the definition of a decentralized currency replacing a fiat. A point of note is that neither government hindered their citizens from making the switch from the national currency to cryptocurrencies.
The New Age Industrial Revolution is unfolding. Cryptocurrency is positioned to be an integral part of it. Crypto adoption needs the cooperation of banks, governments and the catalyst of economic turbulence to advance. Independence from governments and banks envisioned by the creators of Bitcoin and other cryptos are far from the reality taking place concerning the adoption of cryptos by the world’s population.