February 25th 2022.
As some of you know I am currently leading a team with IHub Global getting hotspots placed and building out the IOT (Internet of Things) network. We have a weekly Zoom call with our team and I
have been graduallly introducing them to my thoughts on cryptocurrency investing and some of the passive income opportunities that exist within this space.
I received this question this morning in response to last nights team zoom, and felt sharing my thoughts here may be of benefit to others. Keep in mind, I don’t know anything, I am not a financial advisor, always do your own research and make your own decisions. Never invest more than you can afford to lose in any investment, crypto or otherwise.
QUESTION
“ I just watched the video you recommended last night. Fascinating. I agree with him.Here’s my question, what happens when the government decides to get into the crypto game? I’m hearing that they are looking at having a federal crypto coin, distributed by the federal reserve bank, of some sort and getting rid of cash. That way they can have complete control. What happens to all other crypto currencies? Will that hurt other crypto currencies? “
This is an excellent question. Here is my opinion at this time, (which is subject to change). I suspect that at some point the USA government will come out with a digital stable coin in an attempt to compete with bitcoin and other cryptocurrencies. However the truth is the cryptocurrency market is so big I don’t feel it cannot be stopped, or competed with. On most exchanges operating in the USA that accept new investors to trade on their platform like coinbase, require proof of idenitity before they allow you to participate. In the early days it wasn’t like this, but cryptocurrency is regulated in the USA from that perspective. From an investor stanpoint I don’t care as long as I have the opportunity to look for the next goose as I spoke about on this podcast.
Regarding the USA creating a digital stable coin, the challenge is the crypto world is already way ahead of them. When given the opportunity to use a USA backed stable coin and an establish coin already on the market like USDC, most existing traders will probably use USDC or whatever coin they have been comfortable with instead of supporting the USA government. With that said I feel a USA backed stable coin will attract many more investors into the crypto space and will help the movement towards mass adoption.
Like today we have fiatt currency like dollar, yen, ero etc. used in different countries around the world. In the future there will be many more, most of which will be digital coins, bitcoin, ether, polygon, manna, WHICH CAN AND WILL BE USED IN ALL COUNTRIES, daily around the world.
There are already many stable coins in the market that are pegged to the USA dollar. They don’t move up and down and they will always be worth a dollar within a penny one way or the other. Coins like these are needed in multiple crypto investment strategies.
7 best stablecoins list:
- Tether (USDT)
- Dai (DAI)
- Binance USD (BUSD)
- TrueUSD (TUSD)
- USD Coin (USDC)
- TerraUSD (UST)
- Digix Gold Token (DGX)
The underground movement of the bitcoin trend originally had an anti-government tone and still does. The focus has been on developing a currency that is not effected by inflation. The government continues to print more and more money making our hard earned cash worth less and less and crytocurrency investing help negate this.
They entire concept of decntralized finance is giving control or people’s money, back to the people and out of the hands of banks, financial institutions, and the government.
What Is Decentralized Finance (DeFi)?
Definition from Investopedia. Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services.
My belief is that everything is moving towards a cashless society. The financial system of today’s world is the product of centuries of innovation. What began as a barter economy moved through various incarnations in response to the limitations inherent in the evolving systems. Changes will undoubtedly continue to occur in response to social and technological progress. Contemporary discussion of likely changes has focused increasingly on the possibility of a cashless society. The technology for such a society exists, it called the blockchain and the backbone for all layer one cryptocurrencies.
So to answer your question. Other than Ted Cruz, most politican sound like rambling morons when talking about cryptocurrency, they don’t have a clue. Crypto is worldwide, virtually private, anti-government and cannot be stopped. Governments who embrace crypto like Elsalvador (See article below) will be the big winners over time. Those are my thoughts at the moment. Bottom line, in the future I expect every government to replace their fiat currency with digitial currency. However, if a country tried to mandiate the use of their crypto it would be virtually impossible to enforce and at this point, and not in their best interest.
http://CONTRIBUTORAlex McShane Bitcoin MagazinePUBLISHEDSEP 30, 2021 2:49PM EDTArticle Originally published on NASDAQ Website CONTRIBUTOR Alex McShane Bitcoin Magazine PUBLISHEDSEP 30, 2021 2:49PM EDT
Federal Reserve Chair Jerome Powell: U.S. Has No Plans To Ban Bitcoin and Crypto
Federal Reserve Chairman Jerome Powell has confirmed that the U.S. has no plans to ban Bitcoin and cryptocurrencies.
On Thursday afternoon during the Oversight of the Treasury Department’s and Federal Reserve’s Pandemic Response hearing Federal Reserve Chairman Jerome Powell confirmed that the U.S. has no plans to ban Bitcoin and cryptocurrencies.
During the hearing, House Representative Ted Budd (R-N.C) questioned Chairman Powell about the state of inflation in the United States. Powell deflected the inflation questions, claiming the inflation in this country is due to the oft-repeated supply chain crises caused by the Government’s pandemic response.
Effectively the chairman said that the Fed’s hands are tied when it comes to inflation and that relief will come. Powell suggested inflation should go down in “the first half of next year.”
Ted Budd then cited Powell’s previous comments on central bank digital currencies and their impact on stable coins, Bitcoin, and other cryptocurrencies. Budd quoted Jerome Powell from a July hearing: “You wouldn’t need stable coins, you wouldn’t need cryptocurrencies if you had a digital U.S. currency.”
Budd continued, “So Mr. Chairman is it your intention to ban or limit the use of cryptocurrencies like we’re seeing in China?”
Jerome Powell replied “No,” and went on to explain how he had misspoken at the time.
Budd restated his question, “But you have no intention to ban them?”
“No intention to ban them,” Powell responded, he went on to explain that stable coins ought to be brought into the regulatory
For many Bitcoiners such exchanges in congress are frustrating to listen to as the Fed’s understanding of the differences between Bitcoin and cryptocurrencies leaves much to be desired.
However, the incessant grouping of Bitcoin with other crypto currencies by the Fed and members of congress means that we can safely assume Chairman Powell was speaking to Bitcoin as well.
From a regulatory standpoint, there is still much work to be done by Bitcoiners and politicians to accurately represent and define where their interests align, and thereafter make an informed decision whether and to what extent to regulate Bitcoin.
BUSINESS
El Salvador Just Became The First Country To Accept Bitcoin As Legal Tender
September 7, 20214:57 PM ET
El Salvador’s President Nayib Bukele (shown here at a news conference in May 2020) spearheaded efforts to make Bitcoin legal tender in his country.Yuri Cortez/AFP via Getty Images
El Salvador has become the first country in the world to make the cryptocurrency Bitcoin legal tender.
Advocates of the digital currency, including the country’s president, Nayib Bukele, say the policy that took effect Tuesday morning was historic.
But the first few hours of Bitcoin’s official status in El Salvador were marred by technological hiccups as the country opened its digital wallet app to residents and consumers for the first time.
Why El Salvador is choosing Bitcoin
Bukele previously suggested that legalizing Bitcoin would spur investment in the country and help the roughly 70% of Salvadorans who don’t have access to “traditional financial services.”
“We must break with the paradigms of the past,” he said Monday in a statement translated from Spanish. “El Salvador has the right to advance toward the first world.”
Bukele also has said that using Bitcoin would be an effective way to transfer the billions of dollars in remittances that Salvadorans living outside the country send back to their homeland each year, the Associated Press reported.
El Salvador’s government holds 550 Bitcoin, Bukele said, which is equivalent to about $26 million.
The country’s other currency is the U.S. dollar.
The rollout included success stories and tech hang-ups
Among the stories on social media Tuesday were those of people successfully using Bitcoin to pay for goods.
“Just walked into a McDonald’s in San Salvador to see if I could pay for my breakfast with bitcoin, tbh fully expecting to be told no,” Aaron van Wirdum said in a tweet that was retweeted by Bukele.
“But low and behold, they printed a ticket with QR that took me to a webpage with Lightning invoice, and now I’m enjoying my desayuno traditional!” he added.
Still, there were some minor hiccups during the official introduction of the new currency.
After the launch Tuesday morning, officials took down Chivo, El Salvador’s virtual Bitcoin wallet, so they could attempt to increase the capacity of the image capture servers.
Opposition to Bitcoin … and to Bukele
While much has been made across the world of El Salvador’s historic economic move, excitement within the country may be much lower.
A recent poll by the Universidad Centroamericana José Simeón Cañas, a Jesuit college based in El Salvador, found that 67.9% of people disagreed with the decision to make Bitcoin legal tender. Many respondents said they didn’t know how to use the cryptocurrency, the poll found.
Critics of the experiment — including some of Bukele’s political opponents — wore T-shirts to parliament on Tuesday to express their opposition to the new Bitcoin law.
But it’s not just the economy. Bukele’s government is also facing pushback from the international community over a recent court decision that was widely seen as unconstitutional.
On Friday, judges appointed by El Salvador’s parliament, which is dominated by Bukele’s party, concluded that the president could run for a second term in 2024, according to CNN. Experts say that is barred by the country’s constitution.
The U.S. Embassy in El Salvador said in a statement that the decision “undermines democracy” and “further erodes El Salvador’s international image as a democratic and trustworthy partner in the region.”
