This part 1 in a new series of videos where we'll explore what it will take for crypto to really take off, based on a recent survey of financial advisors. --------------------------------------------- Resources --------------------------------------------- UK Crypto Assets Taskforce: Final Report October 2018 https://ift.tt/2Dba31l Global Bitcoin Political Support & Public Opinion https://coin.dance/poli Metcalfeβs Law On Wikipedia https://ift.tt/1nGzQzS Dictionary Definition For βRegulate https://ift.tt/2RgC6SB Andreas Antonopolous YouTube Channel https://www.youtube.com/channel/UCJWCJCWOxBYSi5DhCieLOLQ ---------------------------------------------------------------------------- More From Me ---------------------------------------------------------------------------- Free video series: Why The Crypto Revolution Is Bigger Than The Internet: https://ift.tt/2zDMPxk Support this channel on Patreon: https://ift.tt/2Qot2J6 Follow me on Twitter: https://twitter.com/ChrisConeyInt -------------------------------------------------------------------------------------- Video Transcript -------------------------------------------------------------------------------------- In a recent survey of financial advisors, the number 1 answer to the questionβ¦ βWhat is preventing you from investing more in crypto?β Was βregulatory concernsβ. To quote the great Andreas Antonopolous, when someone says βthatβs illegalβ you have to ask βwhere?β. Regulation is a set of government rules that are intended to βregulateβ, which means to control or direct. As the world becomes increasingly complex, it gets ever more difficult for small groups of people like government regulators to develop the understanding they would need in order to govern effectively. But more than that, crypto assets donβt exist in the physical realm and thus they simply do not fit into frameworks designed for physical assets that are restricted to geographic areas. The fact that crypto assets exist beyond geographic limitations is (ironically) what makes them so bloody useful. The other problem governments have is that by the time they take some kind of position on crypto, the dynamics may well have changed simply due to the rate of innovation. This is what you would expect from a worldwide collaboration due to Metcalfe's law, a law which states that the effect of a network is in proportion to the number of connections between users, rather than simply the number of users. So why does regulation remain a concern? Because governments are taking their sweet time in publishing clear guidelines. Many western governments took a βwait and seeβ approach only to retrospectively punish a number of companies for not complying. The British government has gotten closer to understanding crypto than most by saying that the tax regulation depends on how the asset was behaving at the time. While this is still as clear as mud, at least it accurately reflects the dynamic nature of crypto. The answer to the question βWhat is Bitcoin?β depends on what you use it for. Value transfer, payment method, store of value etc. Coming back full circle then. Remember that this was a survey of financial advisors, so there is no wonder that regulation came out as the most popular concern. For the sake of their career, financial advisors absolutely have to wait until there are financial products that have definitively passed regulatory approval before they can put their clients money into them. Even then theyβll more likely be investing in derivatives rather than the bearer assets. And that brings us to the very core of the issue, the fact that crypto assets themselves cannot be regulated because they are autonomous. So what ends up being regulated are the financial institutions and individuals that create and handle crypto assets. Ultimately itβs an impossible problem due to the mismatch between the amount of resources available to regulators and the speed at which crypto is changing and growing in complexity. So what is an individual to do? There are two general paths one can take. Stay well away from crypto and donβt get involved until somehow the regulations become crystal clear. Or take it one year at a time and do your best to comply with whatever regulations are in place. Iβm taking option B because Iβm prepared to embrace a bit of unpredictability in order to be involved at the time of maximum opportunity. So thatβs all for part 1 in this series of videos exploring what it will take for crypto to really take off. Checkout the resources Iβve put in the description and hit subscribe if youβd like to be ready for part 2 when weβll explore the second barrier to crypto taking off, price volatility. Until then, itβs me Chris Coney saying, bye for now.
Home The Cryptoverse Why Isn't More Being Invested In Crypto? (Part 1)
Next
Electroneum 2020 Adoption! Will It Impact ETN Price?
Previous
How FILIPINO is HONG KONG? (Domestic Helpers)
Home
Subscribe to:
Post Comments
(
Atom
)
