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by COINS NEWS 77 Views

Once again, refraining from sounding like an alarmist conspiracy theorist madman, I strongly believe that the actions from the U.S. Government and the SEC against cryptocurrencies have been carefully calculated.

In February 2021, Gary Gensler was nominated by president Joe Biden to become the chairman of the SEC. If you've been around any crypto forum/discussion at the time, the sentiment was positive, as everyone believed he would vouch for bitcoin and decentralization in the face of congress and US politics. We all thought that he would help impose new and clear regulations that support innovation in the US and around the world. There are videos of him explaining how most cryptocurrencies are not securities.

Joe Biden on the other hand, has always been against cryptocurrencies. On March 2022, he signed an executive order against crypto. Ever since, we've seen the collapses of Terra/Luna, 3AC, Celsius, Voyager, FTX etc. (is this a coincidence?) We've also seen him publicly criticize "wealthy crypto investors", where he was basically referring to the opposing party members. Just go look at any financial data/chart ever since Biden came into office, it's been catastrophic.

Note: I am not supporting any political group. I'm not even from the U.S. or live there. No horse in this race.

Look, it's simple: The U.S. is against crypto. Why? Because the US Dollar is the world's reserve currency. They don't like it when smaller countries use bitcoin or other crypto as it hurts the dollar. They don't like it when North Korean hackers use DeFi to steal from them, it hurts the dollar and the U.S. economy. They don't like when the average U.S. citizen buys cryptocurrencies or stores btc in their own wallet, it hurts the precious dollar.

Now, Gary Gensler (who's Joe Biden's appointed knight) is now launching his hail mary attack against crypto. The plan is simple: Try to declare most major altcoins as securities (bitcoin can't really be regulated) and this should force most crypto adoption to halt. Here's why the timing is calculated:

  1. The economy goes through cycles. The signals are mixed right now, in terms of whether we're heading into a recession or the stock market is going to continue it's current bull run. However, nobody can deny that an expansion cycle will come around once interest rates are lowered again (probably around 2024 and later - coinciding with bitcoin halving). They know that's when the next crypto bull run is more likely to happen. They don't want cheap dollars (liquidity raising due to lower interest rates) going into crypto. They want them in the stock market. They want other countries that trade with them to shove their dollars into the american stock market. It's that simple.
  2. Not only the economy goes through cycles, but politicians as well. U.S. elections are happening soon and crypto crackdown is just a tool in the shed for them.
  3. Their strongest weapon: SECURITIES. Do you understand why they are claiming that cryptocurrencies are securities? Because they are not sufficiently decentralised.... yet. Most coins are not sufficiently decentralised because major adoption has not happened yet. What would happen if another bull run occurs? More crypto buyers - more crypto users - more nodes - more validators = decentralisation. All projects strive for decentralization. But it's not that simple to achieve. It requires more people, more good actors, more believers. This will only be achieved when adoption increases. What's the difference between Ethereum and Cardano? Ethereum started as a company incorporated in Switzerland. Original founders got paid in ETH. Why isn't ETH a security now? Because it managed to become "sufficiently decentralized".Why is BTC a commodity? Because Satoshi (who controlled the original supply in the first days) disappeared and more and more people started picking up on it. It became fully decentralised. That's what *most* cryptocurrencies are trying to achieve. But it takes time. And not every cryptocurrency will achieve it.

So the current attack is obviously aiming to suck off as much liquidity as it can from the crypto markets. Less liquidity and adoption is good for the U.S. dollar. They can't have another bull run happening, it will be great for crypto and bad for the dollar. The #1 goal of the U.S. is to maintain the world's reserve currency. If they lose that title, some other country (or currency) will claim it.

This is all a major opinion, based on facts. If you disagree with me, I look forward to reading your opinions.

submitted by /u/DerpJungler
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