Cryptocurrency: Washington’s New Bargaining Chip
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Cryptocurrency is proving to be a powerful force on the world stage. Developing countries are adopting crypto faster than ever. It’s a power play that makes total sense. But in the reverse, we see countries like the United States fall deeper into unnecessary bureaucracy. Suddenly we’re in a stalemate. Progressives vs narrow-minded fools whose only goal is to hold things up. It’s funny to see how blind they really are. Politicians in the United States are under the false illusion that they alone can keep crypto on the outskirts, under their control. How egotistical is that?
This conversation matters now more than ever, as policymakers in the US continue to hold up progress. We saw this take over headlines last week when the latest crypto tax bill got shot down. So, why did this happen? How is it impossible to reach a compromise in the US government? Let’s break it down.
What’s Happening with the U.S Government?
To everyone in the crypto world, this news wasn’t super surprising. The United States has hardly been a major supporter of cryptocurrency. So, why would anyone think that this bill would be different?
Basically, the proposed amendment would exempt a lot of groups from the definition of a broker. This would just lessen the burden on people who this rule really shouldn’t apply to. The amendment wasn’t even anything radical. It would simply define brokers as individuals who conduct transactions where people buy, sell, or trade digital assets. Seems pretty straightforward, right? All they wanted to do was make sure that the language was as targeted as possible. But it looks like the bill didn’t make the cut. So, now people who don’t deal with customers directly will be responsible for reporting data they don’t have. Even if you’re not in the crypto world, you can see how this would be a problem…
And why did this even happen? Well, one senator decided that he would use this as an opportunity to introduce more military spending. He decided to use cryptocurrency as his bargaining chip. And Bernie Sanders wasn’t having it. Without unanimous support, the amendment failed to pass. Crypto became an arbitrary bargaining chip in a fight about military spending. Typical United States.
Why do they even care so much about taxing crypto? Well, I think that’s pretty clear. For the United States, it’s all about keeping control. Making sure that they can profit from crypto as much as possible. It’s not that they want to squash crypto. They just want to force crypto into a system that makes as much money for them as possible. They’ve got to be able to recoup the trillions of dollars that they’re printing somehow.
If anything this shows how much the U.S government really believes in crypto! They wouldn’t bother trying to tax it if they thought that it wasn’t going to be around for very long.
So, What Happens Now?
Some crypto advocates are crying out that this is going to stifle crypto adoption. News outlets are reporting that this is the end of crypto. That this is something the industry can’t come back from. Well, I’ve got a different take.
The media is sensationalizing this story for clicks. They’re portraying this as a make it or break it moment for cryptocurrency. That’s just not the case. The United States is not doing itself any favours by pushing back on crypto adoption. Even if they make things difficult for crypto companies in the short term, the US is losing more of its relevance every day. They’re just digging themselves into a deeper hole.
Simply put, the United States is putting itself into a terrible position. In the next 5 years, cryptocurrency is going to reach every corner of the world. It’s going to become a key catalyst for change in our financial system, and this is where the United States is making their biggest mistake.
While the United States continues to think that they’re still the biggest global power, the rest of the world is moving on. They’ve got their army, but that’s about it. In the innovation space, the United States just isn’t a top contender anymore. As the U.S huffs and puffs with their rules and regulations, crypto is going to blow the whole house down.
So, if you’re worried about how crypto companies are going to recover from this, don’t. At NetCents, we’re continuing to lay down roots in other parts of the world. Regions that show way more promise than the United States. We may have started in North America, but that’s definitely not our end game. I’ve seen this coming for a long time, and that’s why I’ve lined up NetCents to be at the forefront of what’s coming.
I can’t speak for every crypto company, but I certainly think that most will begin to cut ties with the United States. Their political system is just so predictable at this point. This is one toxic relationship that we don’t need anymore. You can only hit so many roadblocks until you decide to take the ultimate detour.
Now, not all companies are going to leave the United States. Innovative companies just won’t want to toe the line much longer. Why try so hard to stick to the rules of a country that’s going out of its way to make things difficult for you. It’s becoming a lot easier to look towards countries that support innovation. That’s one of the reasons why we put down roots in Munich. We saw early on that the city was going to become the Silicon Valley of Europe.
But that’s the U.S in a nutshell. They overcomplicate things so much that innovation gets stifled. Even though that might not be their intention, the U.S government continues to force innovative companies into a box that they don’t belong in. And those companies are about to break free.
The way we manage our day to day lives is about to see a major shift. We’ll see individuals in complete control. We don’t need big data, and we certainly don’t need governments trying to get us to play within their rules.
How do you feel about this? When do you think most tech companies will leave the United States?
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