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5 Difficult Truths About Cryptocurrency You Need to Accept Now

You might love crypto, but that’s a problem for the governments and banks who want to keep control of you and your money.

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Cryptocurrency is a bit scary for most people, and with good reason. Heck, even the name is cryptic, both figuratively and literally. It works more like stocks than regular money, and it’s volatile in nature. We don’t like uncertainty. And with the way the world is right now, we’re clawing for some solid ground.

However, it’s not the everyday person who is the most scared of crypto. No. Indeed, big banks and their pals, the government, dislike crypto’s decentralized and anonymous nature.

Cryptocurrency rests mainly in the hands of the people who use it. That’s what makes this a win for freedom and democracy! But, unfortunately, while crypto is becoming more mainstream, taking business away from banks has caused them to feel threatened by its existence. They just can’t stand how much good cryptocurrency does for individuals’ power over their own finances.

Yet, there are multiple reasons for banks and governments to fear cryptocurrency, and I don’t believe that’s a bad thing. In this article, I’ll discuss five of the most difficult truths about our future with crypto and how we can still have a chance to have a currency for the people.

Cryptocurrency is decentralized, making it out of the control of governments and banks

If you can manipulate the flow of currency, you control the population. You dictate who gets jobs, who can afford to buy houses, and how much they pay, too. This is an excellent example of why the government wants control over the currency. So they can rig it in their favor.

In my opinion, cryptocurrency is made for the average person. With crypto, you don’t need permission from anyone to receive money, and you don’t need permission from a bank or government to send it.

With cryptocurrency, the people are in control. Open-source is here to stay because it’s a better option for the public at large than closed-source centrally-controlled infrastructure. And as long as that remains true, it’ll be difficult for banks and governments to stage a hostile takeover of crypto. But not for lack of trying.

As we now know, central banks control the flow of money in our economy. They decide who gets credit, who doesn’t and even choose how much money is in circulation at a given time. Centralized financial institutions such as this have their fingers inserted into every corner of the financial world.

One thing you should know about these central banks is that they are profit-seeking institutions, but, surprise, you’re not their client. You’re merely a resource to be exploited for their benefit. The more money they generate without serving you, the better it is for them. They don’t care if you get rich or not in the process. I would argue they prefer you poor.

But cryptocurrency has changed all that. You don’t have to go through a bank or government institution to buy crypto coins. You may even decide where you send your funds from and where they end up without having to explain why you sent it there. And if the cash flow in crypto is excellent, it will upset banks and governments. And believe me, they won’t sit idle while it happens.

A decentralized financial system is an excellent thing for the average person. Because it would take power away from big banks and give the population more control over its money.

Cryptocurrency moves money away from the 1%

Banks and hedge funds are losing money to cryptocurrency. This has resulted in them creating schemes and regulations to strangle crypto before it wrecks their cash flow.

How do you think the stock market would feel if a new company came out and threatened its control over stocks? But, of course, it’s not so different with banks when they see people using decentralized currency instead of their centralized fiat currency. So, will it be better or worse if banks manipulate crypto in their favor?

It’s no different than what Wall Street, the SEC, and the U.S. government did with the IPO market. They created methods to control it and boost their profits at any cost. The same can be said for how these institutions are trying to manipulate crypto down as much as possible so that they can later exploit it for maximum gain.

If you think about it, banks have always taken advantage of investors by controlling what they could and could not do. For example, banks have complete control over anything that occurs before an IPO goes public. In addition, lawmakers and the SEC have their gatekeeping. So not much has changed for the entire history of money.

In fact, the stock market is the same today as it was in 1929. It’s still controlled by big banks and hedge funds which can manipulate stocks any way they see fit to boost profits. This isn’t necessarily the worst thing, but I think it should be more egalitarian.

People will always need banks and governments for help with taxes or any other complicated task. They shouldn’t have to pay “transaction fees” on every purchase made to appease these central banks. And if banks can’t adapt to the rise of cryptocurrency, that’s their problem, not ours.

With crypto being decentralized, the average person now has power over their money. There is no need for an intermediary institution to make a transaction. We live in a world where information is supposed to be free, and transactions should be too. Now, both of those things can finally happen because of cryptocurrency.

Criminals love crypto because it can be hard to trace

Although cryptocurrency contains a ledger attached to every block in the blockchain, it’s a lot easier to hide the identity of a criminal behind the blockchain’s anonymity.

Many people say that cryptocurrency is mainly used for illegal activities such as drug trafficking and money laundering. The truth is, although this decentralized currency may be used more often by criminals than regular folk, that doesn’t mean that crypto was made for them in mind.

Yes, some bad actors may be using crypto to commit crimes because it’s easier to use than cash or credit. In addition, the blockchain ledger that contains all the transactions makes it harder for authorities to track them down. But let’s not forget all of the crimes committed with fiat currency and its counterfeiting throughout history. So cryptocurrencies problems can be ironed out.

Even though cryptocurrency has a criminal component, I don’t think we can point fingers at decentralized currency and say it’s all bad. The fact is that it changes the way we look at money by allowing people to have more control over their finances. However, suppose criminals continue to use it for their own dark purposes. In that case, I’m sure there will be a better system built on top of cryptocurrency that can help law enforcement track them down much easier than cash or credit cards.

Cryptocurrency’s most significant hurdle to overcome is regulation

As I said before, banks will do whatever they can to protect themselves and boost their profits. That includes regulations placed on crypto by the government to control it, ensuring that no one messes with the way money has always been made. As a result, many cryptocurrency companies could be forced to shut down immediately.

Look at the SEC’s Initial Coin Offerings (ICOs) comments if you don’t believe me. The commission warned investors in an official post made on their website that ICOs are “high-risk investments” and must be sold as such. But, of course, with regulation comes protection, but will it be too much?

ICOs have become huge in the crypto world, allowing companies to raise tens of millions of dollars in just a short period from investors who believe in their company. However, suppose we start overregulating ICOs and, by extension, cryptocurrencies. In that case, it will stifle innovation at its core and make it hard for new companies to enter the space.

I feel that most governments in the western world will side with cryptocurrency rather than try to shut it down. The fact is that if a company created its own proprietary coin or token, it could potentially be worth millions of dollars. In my opinion, this is another reason why we haven’t seen too many regulations placed on the space.

I believe that regulation will come to the cryptocurrency world eventually. Still, it will be a slow process rather than an immediate clampdown by the government. But, whether we like it or not, there needs to be some sort of regulations placed on crypto because if the SEC says something. They don’t follow through, criminals would have no incentive to follow any of the rules either.

It’s easier to create a cryptocurrency than a business that produces a product and sells stocks

If you went to university or college and studied economics, you probably remember the supply and demand curve. It’s a curve that shows how much of a good or service is available in an economy compared to its price. Unfortunately, the cost of cryptocurrency is at the mercy of its creators. A company can create a token or coin and then put it out into their market with no clue how many people will buy it. This uncertainty causes prices to rise drastically or drop as quickly as 90%.

With that being said, it’s straightforward for anyone to create a cryptocurrency and sell it online for almost any price they want because it’s still in the early stages of this technology. Most cryptocurrencies are marketed as investments rather than actual products.

At any rate, it’s a lot harder for any company to create an actual product and sell it on stock exchanges because there are more regulations in place. However, the SEC is “cracking down” on companies doing initial public offerings (IPOs). This means we’ll have to see how many companies will sell their products on the stock market with little to no repercussions.

I believe that as cryptocurrency continues to grow, more and more companies will try to jump into the fray of ICOs. With that being said, I don’t think many of these companies will actually have a working product by the time they hold an ICO. Still, it will be interesting to see how many of them actually try.

Conclusion

Today, the goalposts are shifting as we move from a digital world to a crypto world. But some people want to stop us. For example, governments and banks don’t like what cryptocurrency has done to banking fees or how governments have lost control of their economies. So they’re doing everything in their power to ensure that doesn’t happen — but it’s up to all of us if we really want this revolution!

As usual, it’s us against the 1% and the capitalistic system they’ve created. However, I believe that shortly, we will see more and more people switch to cryptocurrencies from fiat money. Still, it will take time because many people are set in their ways, and power brokers are scared.

Do you think we’ll ever see a total shift to cryptocurrency?

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