Over the last few months, we have provided numerous articles detailing how most do not understand what is taking place. This is something that we focused upon with the general public yet, we are now seeing it spread.
Operation Choke Point 2.0 is the United States Government's attempt to stamp out cryptocurrency. This is turning into a full blown war. It is time that everyone wake up to this fact. The Biden Administration is intent on eliminating this industry and, whatever remains, will be in the hands of the banks and Wall Street.
At the head of the table is the Securities and Exchange Commission (SEC). There is no doubt that Gensler is operating with full White House support. In fact, he is doing a marvelous job from that perspective. His role is to reign this in by whatever measures necessary. The legality of what he is doing will be worked out later, after the job is done.
It is best to look at what is taking place and how Hive truly is the solution.
Operation Choke Point
This is a government scheme that was instilled a decade ago. The idea was to target industries that were legal yet unsavory to the political establishment. At the time, it was Obama who occupied the White House.
The basic concept is to cut industries such as gambling, firearms, and other risky ventures from gaining access to banking services. As we can see, if there is only a limited way to engage commercial, an industry is going to suffer. Basically, without banking services, an entity is screwed. This is a point to keep in mind.
We can debate the effectiveness of Operation Choke Point yet it did seem to have an impact. Many of the services that were targeted did go away. Gambling, as an example, ended up moving offshore. This is another important fact.
Governments operate within a specific geographic location. Even though they can often span national boundaries, there is a limit to what can be implemented. Nevertheless, they made it difficult for hundreds of millions of people.
Operation Choke Point 2.0
Here we see the next iteration of this concept. The target now is cryptocurrency as the establishment deemed them a threat to the population. Of course, the action throughout 2022 did not make things any easier on this end. Ultimately, the ammunition was provided although it is not cryptocurrency. What we witnessed was nothing more than typical Wall Street antics which were done numerous times by firms over the last few decades.
The difference is we were not dealing with those from the inner circle.
We saw a recent push were SWIFT decided not to message transactions relating to cryptocurrency under $100,000. The idea is not to eliminate cryptocurrency but, rather, get it into the hands of the banks. Financial institutions have no problem moving $100,000 around; retail investors do.
The evolution of this is going to be a continued eradication of services that entities (and individuals) tied to cryptocurrency enjoy. We are going to see the banking services tightened just like the aforementioned industries.
Here is where the U.S. Government believes it will win this battle.
Unfortunately for it, there is a completely misunderstanding of what cryptocurrency is all about.
Monetary System
People discuss cryptocurrency and debate its merits as money. How many times have you heard the focus being upon the monetary system as opposed to money?
Cryptocurrency, through blockchain, is a new monetary system. Here is where the first miscalculation takes place. Trying to destroy crypto without understanding it is doomed to fail.
It is also why those who are advocates of it have to be optimistic. When looking at the situation, the fact we have a new monetary system being created means the old is rapidly becoming obsolete.
From this perspective, I maintain Hive is one of the most powerful monetary systems there is. It is truly decentralized along with the fact that it is an advanced network. When it comes to speed, cost, and settlement, there is little that can match it. Make no mistake, communications is a big part of the monetary systems we utilize. Few, if any, are better than Hive.
Therefore, trying to attack a monetary system by excluding it from the monetary system it is designed to replace is pretty foolish. Viewed through this lens, we can see how flawed the plan is.
Operation Choke Point 2.0 is trying to unbank the cryptocurrency realm. What they overlook is this was designed to bank the unbanked.
Global And Digital
In the original version of Operation Choke Point, the goal was to drive industries offshore. The United States Government could care less if firearms or gambling took place in other countries. Its focus was to eradicate it from within the nation.
Of course, industries such as gambling picked up and left. This was a hit to the industry as liquidity most likely dried up. However, the industry survived. Ironically, a decade later, it is was legalized by the United States Supreme Court. Again, the legalities are always worked out later, after the damage is done.
The difference in this situation is that blockchain is already global. We are dealing with the digital world. There are no building, jurisdictions, or headquarters. Instead, we have a decentralized network that is operating on servers all over the world. This means that shutting it down in one country has no effect. China's ban on Bitcoin mining proved that. It was nothing more than a temporary reduction in hash rate.
What ends up happening is the bucket springs a leak. Operation Choke Point wants to attack the on and off ramps meaning the access to the banking system. The idea is to stifle the industry by cutting it off from the money.
To make this effective, everyone has to agree. The ban on Bitcoin mining was ineffective because other locations were rolling out the red carpet.
A bank in the Philippines just started Bitcoin and Ethereum trading. This is an example of a hole in the bucket. We are going to see this happening all over the world.
Hive Is Out Of Reach
The decentralization of Hive puts it out of reach from any government. They would all have to align to wipe it out. That means, as a monetary system, Hive will keep chugging along.
There is another factor to this. The ones behind the crackdown below that cryptocurrency value only comes from fiat currency rushing in. This is not surprising since that is how most of the industry approached it. Mooning and Lambos were the mantra so long most overlooked what happens when building takes place.
Hive excels in the fact there are many projects that are developing platforms that extend outside the financial arena. These are going to have interest from the average person. Of course, the fact that this is Web 3.0 means there is a merging of social media with finance[.
Network effect offers enormous value. This results when large numbers of people start to utilize an application. The exponential nature of the growth means the value skyrockets.
Of course, we have a way to capture that via tokenization. While not having access to exchanges might be a problem, the reality shifts when we see off ramps through the ability to purchase real world goods. Again, the global nature of things makes this impossible to stop.
We are already seeing a small group in Sucre, Venezuela who are accepting HBD as payment. Here is where Hive also can excel. This is a stablecoin that cannot be regulated. That means it cannot be hindered by the USG (or any other government) for making purchases.
Here is the real kick in the pants: HBD is appealing to many people outside the US because it effectively gives them access to a digital dollar since there is a peg. This is desired when you have currencies such as the Bolivar that are total train wrecks.
In the end, the US Government is going to help Hive because it is one of the few systems that cannot be messed with. Of course, we cannot rest on our laurels and more work is required, pushing decentralization even further out. The addition of smart contracts is crucial.
Over time, Hive can expand in value simply by offering more services and applications that people desire. We are already seeing a plethora of front ends being created. The social media spectrum is slowly being covered.
At some point, we are going to approach DeFi. There is already a bit of fixed income without counterparty risk on the blockchain. This will continue to evolve over the next couple of years.
Finally, we are bound to see commercial applications popping up, especially as HBD gains a hold in some areas. This is a major counter move to Operation Choke Point 2.0.
To Hive, it does not matter where, geographically, it comes from. The only criteria is that it happens.
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