Towards the end of 2017 we made various posts predicting that Crypto market’s biggest challenge in 2018 would be regulation.
This has clearly been the case as governments, big institutions and regulators have all been stressing the importance to regulate this ever growing market. The market has since turned bearish (for the most part) as investors and adopters have been left facing uncertainty as to how this market will operate in the future.
Whilst we are not opposed to proper regulation, which we actually believe could benefit the market in the long term, we are concerned as to just how far that regulation will go. Regulators and governments should be quick to remember the reasons why Bitcoin was formed in the first place. If attempts are made to suffocate Cryptos and prevent it being used as a peer to peer, then they are likely to push the Crypto creators to react.
The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. ~ Satoshi Nakamoto
if regulation goes too far
There are extremely intelligent Cryptographers, computer scientists and computer programmers out there who are behind some significant advances in technology. Should regulators seek to stop these advances in technology by putting tight restrictions on how they operate, this could cause Cryptos to become more private with operations taking place over decentralised exchanges.
These computer geniuses will look at ways to get around the strict regulations imposed on them, keeping regulators a step behind them.
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HOW THE MARKET COULD BE REGULATED
Regulators and governments will do well to work with, rather than against the creators of Crypto in order to create a regulated framework that products consumers and users but allows the technology the freedom it needs to flourish. Of course, regulators have the right to prevent criminal activities taking place but their focus must not be to prevent Cryptos from advancing technology as we know it.
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We are not investment or financial advisors and are here to provide news and our opinions. Please be fully informed regarding the risks and costs associated with trading the financial markets and the Cryptocurrency market, it is one of the riskiest investment forms possible.