The crypto wars aren't over! They're just heating up.
With the Trump victory, new SEC regime, and lots of pro-crypto overtures in the US, and clear regulatory frameworks being adopted in Europe thanks to MiCA, it can seem like the worst is over.
It's not. We still have to fight. Here's why (saved the worst one for last):
💀The regulated stablecoin to CBDC pipeline is real
The biggest, realest threat is that stablecoins are overwhelmingly becoming the most popular crypto payment solution. And those increasing their market share are overwhelmingly centralized and regulated.
In the future, stablecoins may be made fully-KYC by default. Decentralized ones are way behind, and may not get significant enough market share to become viable alternatives.
Then, we're essentially living the CBDC nightmare, with extra steps.
💀Different treatment for different cryptos
Already Trump is talking about tax advantages for "made in the USA" cryptos. Even if this is a good idea and his intentions are pure, governments offering specific advantages will funnel capital and users into cryptos they have stronger control over.
If most hashrate, validators, and developers for popular cryptos are in one country, doesn't that make them easier to compromise?
💀The "national security" argument
As cryptos become more important to the global economy, nation-state arguments for exerting XYZ control over the protocol for "national security" reasons will start to crop up.
51% US government-owned/subsidized Bitcoin hashrate after a strategic reserve is one such thing I can think of.
💀Crypto, especially privacy (or lack thereof), is now understood by governments!
This is the big one!
Most crypto, crypto users, and crypto usage have terrible privacy! They have remained effectively anonymous just because it took governments a while to catch up with the tech. But trust me, by now they have.
Most people's ability to operate with the feeling of complete autonomy and anonymity are in for a rude awakening soon. This could be the lull before the storm.
Yes, crypto is winning. Yes, it's here to stay. But we're still in a precarious position in regards to freedom money.
Keep up the fight! ✊