The US Treasury Secretary's warning against cryptocurrencies and why it can't do much to "brake" it. The threat of restrictions and the ... gift to competition.
A few days ago, Steven Mnuchin, the US Treasury secretary, told the Senate Finance Committee that he would soon announce "significant new requirements" for cryptocurrencies. Specifically answering a related question he said:
"Especially for cryptocurrencies, we spend a lot of time in them, in consultation and cooperation with regulators. We want to make sure that technology is advanced, but, on the other hand, we want to make sure that the cryptocurrencies are not used like the Swiss bank accounts used to. You will see the results of our studies very soon »
From 58 'on the following video:
Mr Mnuchin, who poses with his cute wife holding freshly printed dollars with his signature, was not the first US official to parallel the Bitcoin network with a Swiss bank. Former US President Barack Obama was first.
When they explained to him what was going on with Bitcoin, he had figured out that it was like having a Swiss bank in your pocket. Obama had realized only half the truth. The whole thing is like having a Swiss bank in your pocket, but you're not a mere customer. You're her manager. You have the ability to open multiple accounts, send and receive remittances worldwide. And all this anonymously, although in fact the transactions are not anonymous but pseudonymous. Whatever the case, Bitcoin gives the ordinary citizen the opportunity to enjoy the privileges of the very wealthy.
So should those who own Bitcoin worry if the US government decides to attack it? It will definitely cause disruption. It's not so nice to get the loudest in the room. But what could the US government do? Not many. There are many theoretical ways to attack Bitcoin, but practically none are applicable.
Every aspect of Bitcoin is text: The whitepaper is text. The software from which it runs is text. The ledger is text. Transactions are text. The last 15 years. the Supreme Court has repeatedly ruled that money is a form of discourse. As stated in the US constitution,
"Congress shall not pass any law establishing or restricting the establishment of religion or restricting the freedom of speech, press or the right of the people to assemble peacefully and ask the government. to remedy his complaints. "
If the US government, backed by the powerful bank lobby, dares to legislate on cryptocurrencies, they will make the best gift to competing countries, and China will be the first to celebrate. However, this gloomy scenario ignores one important detail: banning Bitcoin is not in their interest. It will cause dissatisfaction as it attempts to stifle one of the most innovative technologies of this century, which will affect technological development at all levels.
Add in the legal issues, as it will certainly be contested in the courts, and you will have the full picture. Supporters of crypto will be affected, as it is about their freedom to choose where to put their money. Something that they have not dared to apply to regimes like China. Especially in Western-style democracies, citizens will react. They will feel threatened by their freedom, their privacy.
After all, the key question is: can some government order Bitcoin to change its specifications? The answer is unequivocal and absolute: no. Why not; Because the rules governing its operation are mathematical. It's like making a law that prohibits proliferation. All they can do is ridicule.
After all, there is no uniform attitude between the states and there is unlikely to be genuine coordination between them. Prior to the official endorsement of Chinese President Xi Jinping, who hailed blockchain technology, China in 2017 banned the operation of cryptocurrency exchanges in its territory. So we saw in practice what the ban is doing: Nothing. In the beginning there was panic, the price of Bitcoin fell. But then they realized that it could not be implemented. These businesses simply changed their headquarters.
What did they do with the ban? They sent them elsewhere. Other countries have created a secure legal framework for exchanges, digital asset managers, traders, the blockchain scientific and business community. Many states, such as Malta, Cyprus and Singapore, have seized the opportunity to gather all this business on their territory. Why are they aiming to become a tax haven for cryptocurrencies? Because they will reap the side benefits. New businesses and new jobs, transfer of know-how.
The market today
As we see in the Bitcoin chart, the green support line we had pulled in close to $ 9,600 bore. For many, the important thing about Technical Analysis is how the so-called golden cross was marked. A relatively rare event that occurs when the 50-day moving average (blue curve) breaks up the 200-day moving average (purple curve). It is considered to be an indication of a large upward movement.
Personally, I do not attach much importance to such indications, but since many have calculated it, it is not bad for us to follow it.
