The Potential Paths Cryptocurrency Regulations Could Take (And Which One’s Most Likely)
The Three Swords of Damocles
Disclaimer: This is not financial advice. I am not a financial advisor. What follows is my personal, subjective, biased opinion.In an ancient, Greek anecdote, Damocles of Syracuse lamented his king’s great fortune, for he seemingly had it all: power, fame, luxury. To show Damocles it’s not all fun and games, king Dionysius offered Damocles his throne during a royal dinner.
However, once Damocles sat down and reveled in the king’s conveniences, Dionysius had a sword hung right above Damocles’s head. Attached to only a single thread of horse hair, ever-looming impalement quickly left a bad taste in Damocles’s mouth, no matter how good the food. Eventually, he asked to be dismissed of his new, ‘fortunate’ position and the pressure that comes with it.
Anyone who bought cryptocurrencies for speculative reasons in November or December is Damocles. Investors got to sit in the king’s throne, but now that the market has turned and regulators are making moves, everyone wonders whether to get up and leave, for the policy hammer might soon come down.
As the US Senate, US Congress, the G20, and plenty of other officials are starting to debate the issue, I see…
