China and America: What We Need
Great news! We are seeing that South Korea is going to be verifying their users, not banning the practice of trading altogether. They will begin identifying who exactly is tied to every single account. I think there will still be some backlash from disgruntled Finance Ministers (or whoever-the-hell), and we haven’t seen much crazy price movement that would come with a “we’re back open” announcement. I think this good news has wrapped the bad news in a bow. Koreans are okay to trade, and we want them to continue! That country loves speculating. However, this hits the Chinese traders right in the mouth.
China is pushing out miners, getting wiser to capital flight loopholes, and seemingly wanting nothing to do with cryptocurrency or blockchain. When Facebook is taboo, did you really think blockchain was going to be the bee’s knees? I think my two main worries going into 2018 are China and America. The way that these two economies react formally to cryptocurrency has not yet been fully developed. Probably because they are trying to figure out ways for it to work for them before they denounce it altogether. Let’s think about their problems.
The country who needs this the most! They have had a restrictive government that often places rules that can jeopardize the value of their hard earned savings. I love when San Francisco techies talk about de-centralization needs to happen in America NOW, when Chinese people are fighting for their financial lives each and every day. I feel for them! I want them to be able to access the things that can give them more freedom of choice in investment and storage. This Korea thing was a real stinker. When the people with the biggest problem that needs solving can’t access your products, it is tough. I am worried about this. I don’t take too much risk in this market, and this is one of those risks that could jeopardize a lot.
Here is what we are hoping to see: They deal with the devils they know. There are plenty of Chinese nationals who have dealt with government officials before, that are now putting up their crypto storefronts. I am hoping that these are the ones that they will work with to create a future that they determine. The entire internet will slowly migrate into the blockchain, I just think they want to set the rules for it. This may take a while, and I think Chinese volume will suffer for this. I really hope that better, more compromising things can come out of this government a little quicker. We are already seeing so much growth from the Chinese teams! Anyone see NEO last night? Walton, QTUM also making moves back. These are some of the best minds in the world at anything, let alone cryptocurrency. I think China will have to blink eventually.
America: Taxes & ICOs & Donald, Oh my!
I really strongly doubt that a low key tax announcement is all we will hear from the United States. Angel list is ripe with new exchanges desperately trying to get on the market before Coinbase realizes their app is the only competitive advantage they have. GDAX and Coinbase are the pioneers, they were able to come up with something good enough for a public that needed it. However, when the pioneer doesn’t put some more crypto logs on the fiat based fire, I start to get cold. We need more things to buy in fiat, and I want a 1099 for it. Ya, I said it. I want a tax bill. We will never get to full adoption without formalized procedures. Decentralization is wonderful, but it isn’t there yet. Just spit me out a tax bill so we can get this thing started.
Make no mistake, start-up currencies and platforms from the United States are coming, and quickly. The government will formalize the ICO (ACO was the proposed?) process so that we don’t have wide scale fraud and plagiarized white papers. This will be when people can buy Exchange Traded Funds with crypto constituents. You really think there won’t be a SPDR for this at some point? My other articles continue to point out working businesses (I argue platforms for Dapps & Smart Contracts) will be the main constituents of these financial products. I am desperately trying to find ALL the United States based working blockchain focused cryptos. I will keep you posted on my findings of course. I never, ever, ever talk about something I don’t know about. There is way too much money at stake for me to talk about things prematurely. Be careful on Youtube, please please please.
Donald. The Donald. We haven’t heard one thing BIG about cryptocurrency from him. Mnuchin can say what he wants, but clearly Twitter is running the show (especially for us cryptocurrency people!!). This is a huge unknown. This can affect the dollar. This can affect the banking industry. This can affect the loan industry. We already have robots working at McDonald’s, now shirt and tie people are at risk? I am hoping we craft a peaceful transition, but less money will be available to pay people. Think about what happens when you can get a rate for a mortgage on the blockchain, sourced by global crowdfunding through intermediaries? I don’t even want to know how low that rate can get when it becomes mainstream. Humans have always had power in numbers. This can be a very big number.
None of what I am saying is a recommendation to buy cryptocurrencies, in fact it was a warning sign. Let’s all be safe, do research, and know that this can, quickly, go to $0. Best of luck.
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