I usually try to stay out of discussions as much as possible. In the crypto world, I'm the guy trying the Play2Earn Approach, avoiding anything that I deem to stressful while still trying to fill my bags. I'm no different in the "real" world, where I try to stay out of any fundamental political discussions. I've learned soon enough that my opinion isn't really welcome on either side of most discussions, so most of the time I just keep it to myself. Mostly, this is working pretty well for me. Not telling people you consider their opinion to be stupid is a surprisingly efficient way to make friends.
Nevertheless, there are topics that I feel need to be addressed, even if it means risking some people disagreeing with you on a fundamental level. To me, one of these topics is the question of blockchain regulation and blockchain adaption. Whether we like it or not, there's a war of opinion raging out there. It's not as openly fought as some other topics yet, but it's happening and the rhetoric is getting harsher. This morning, I've read an article in the German Manager Magazin detailing how the German Banking Association is calling for strict regulations of Bitcoin and crypto currency in general.
Their reason given is the extreme market volatility which retail-investors need to be protected from. Obviously, this is a phony argument. If the banking association was actually worried about retail-investors losing their money, they would first try to regulate (and probably simply ban) stuff like leverage trading which is actually going to eat retail-investors alive. Fun enough, though, that's not an issue. If they were bothered about the financial well being of the common man, they'd try do educate them, explain how markets are working, how people need to understand their emotions, how they should not invest money they intend to spend any time soon. But in reality, they are having none of this. They simply do not care about protecting retail-investors. What they do care about is their financial order. And that's what they are trying to protect.
In reality, there are two major reasons the Banking Association hopes to enforce strict regulation on Bitcoin:
- They currently don't control the flow of assets within the crypto world
- The crypto world endangers the very fundamentals their financial system is built on
The simple truth is, blockchain is probably the biggest threat to the financial order the German Banking Association is standing for. An asset that will make anybody rich that dares to just hold it for 5-10 years brings down the whole system. Our whole conventional financial world is built around a simple truth - you'll never get rich if you play by its rules. You are meant to go to work everyday, earn your salary, and spend it all on everyday goods, only allowing you enough to go on vacation every now and then or afford a new car. Even buying a house is next to impossible for many with what you earn in a lifetime in Germany. Repaying these debts is going to take you 30 years or more.
Taxes upon regulation upon more taxes will make sure that you can never get out of this vicious cycle of earning and spending as long as you stay within the boundaries of the system. Bitcoin though provides an easy way out and more and more people are realizing what blockchain can do for them. The German Banking Association doesn't care if you loose your money, but they care very much for their control over everybody within the system. Anybody that manages to accumulate and hold enough crypto currency to no longer rely on their money is a threat to the system. Have too many people make it and you risk to see the whole order collapsing.
The truth is, in a world running on blockchain technology, banks are no longer needed. If you need no banks, you certainly don't need a banking association. Ultimately, all the Banking Association is trying to protect is themselves, their own future, the sole reason they exist. I'm pretty much convinced that they will come down eventually, but I'm even more convinced that they won't go down easily. They'll claw and bite, and if they have to, they are prepared to take everything down with them.
In the end, we'll see the full propaganda machinery spring to live and that's why it's so important to talk about this. We are still early in the crypto era and the masses believe what ever the media tells them. And the media certainly is not on our side of things. So go out there, talk to people, explain to them what blockchain can do for them. Most importantly, though, make them ask questions themselves. Help them to see the bigger picture.
This whole thing might sound a little more extreme than what you are used to read from me and it probably is. Nevertheless, I'm not a radical. To tell the truth, I'm pretty much a conservative in many things. I live a comfortable life, I earn good money, I have a secure job, I'm about as good entrenched in the system as you could be. But I can also see that the system is bad for us, it's bad for the many. Those that benefit from it are in control of everything, the banks, the media, the government. We can either accept the status quo and make the best of it or we can start to change it - one mind at a time. Trust me, I'm a pretty lazy guy, I don't like stress, but even I understand that things won't change for the better unless we all work towards the common goal!
And that's all from me for today! Thank you all for reading, tomorrow I'll be back with a lighter topic when I bring you the next iteration of the Play2Earn Report!