Cryptocurrency & The U.S. Government
I am a person who hasn’t trusted the Wall Street Stock Market and big companies from the beginning. And the 2008 Financial crisis and the beginning of the great recession reinforced my distrust. When the too big to fail and too big to jail bank situation happened, I knew something needed to change. Because of this event, there came cryptocurrency. I have wanted something like cryptocurrency to replace the Wall Street corruption and paid off government influence for years.
How does it work?
The concept of Cryptocurrency in the definition is a digital currency. It is cryptographic making it almost impossible to counterfeit or double spend. The system they use is called blockchain, where a central authority does not control it.
It is a decentralized system using blockchain which makes it so multiple systems are involved and verify the currency. This system makes it by theory almost immune to government control and from being influenced by the too big to fail and too big to Jail banks on wall street.
Where is Cryptocurrency from?
The very first type of Cryptocurrency was Bitcoin. Bitcoin was created by an individual or group of people going by name of Satoshi Nakamoto. It was the first cryptocurrency made and is now the most popular, valuable, and well-known cryptocurrency in the world.
Why cryptocurrency?
The idea of cryptocurrency was originally made to replace physical currency. It was first thought to buy things such as a coffee at Starbucks, or gas at the local gas station.
Cryptocurrency came out in 2009 during the great recession. To help keep it so banks don’t control all finances. Since the central authority banks have controlled finances for centuries and their modern self-purpose is profiting no matter the cost.
The Conflict.
Cryptocurrency is still, even being over a decade old, new to the world, and especially to the U.S. government. The U.S. government is now working on new laws to try and control the cryptocurrency industry. The government does not understand the cryptocurrency industry and doesn’t fully control it making the U.S. federal government fear it.
Experts believe that it may dismantle the financial industry. Because the financial industry has the most influence on the Federal government, and the financial industry is highly challenged by the cryptocurrency industry the federal government is investigating it. It wasn’t until 2021 before the federal government thought of getting any information on what and how the cryptocurrency financial industry works. The First serious hearing involving the cryptocurrency industry wasn’t till December of 2021.
I support more regulation on Wall Street and Giant Banks because of greed and the 1% being in control of more than 27% of USA income. Which is more than the complete middle-class controls now in 2022.
But I am skeptical of adding laws to cryptocurrency because it is a new type of finance. Most government laws are influenced by some sort of Campaign Fund or donations of some kind and not much else, which is influenced by the 1% mostly. Even with insecurity and the rapidly changing cryptocurrency market, laws and regulations created by the government influenced by the competition of cryptocurrency are dangerous.
It doesn’t help when the fuel behind the move for regulations is fear.
Just now the Federal Government has introduced new legislation involving cryptocurrency such as the cryptocurrency tax reform act, (H.R. 5083) made by Rep Soto and Darren transforming a cryptocurrency broker or modifying the definition of broker for tax reporting purposes to include any person. This makes it, if passed, that any person who effectively transfers digital assets on behalf of another person is an official broker. (i.e., a digital representation of value that is recorded on a cryptographically secured distributed ledger).
But only time will tell what the true effects are, of legislation like this.
For information on the current status of the law and the status of the cryptocurrency markets are at these links:
https://www.congress.gov/search?q=%7B%22source%22%3A%22legislation%22%7D
https://www.tradingview.com/markets/cryptocurrencies/prices-all/