It seems as hard as we try, politics can never be completely avoided. It’s a highly competitive world where countries are trying to outdo each other, and potentially become the next world leader. And then there are rival countries, where relations are tense, to say the least. There is a famous phrase; “The enemy of my enemy is my friend.” As the days, weeks, and years go by. This quote is becoming more and more relevant in the crypto world.
A clear example of this is what has been happening between the United States and China during the last few years. They are in a hotly contested battle to be the leading country around the world, and they are both trying to outmaneuver each other. They also have polar opposites in terms of beliefs, politics, and actions.
During the peak of the covid pandemic, China decided to ban Bitcoin, crypto, and mining within its borders. The US’ biggest fear is being considered similar to China, and therefore they proclaimed that they are the farthest thing from them. That the USA was fully open to Bitcoin, crypto, and mining. It was the “land of the free.”
However, that was during the peak of the bull market when people were making large amounts of money, and donations from crypto-related organizations were flowing into politicians' campaigns like a free-flowing river.
But then began to change. The bull market came to a halt, and the summer of crypto insolvencies began. Causing companies and funds such as Celsius, 3AC, BlockFi, Voyager, and several others to become insolvent. With that said, the final nail in the coffin was when FTX’s fraud came to light. It was the 2nd largest crypto exchange in the world. Even more importantly, SBF was the 2nd largest donor to the Biden Democratic party. They were caught with their hands in the cookie jar, and they got embarrassed. When politicians become embarrassed, they come back with a vengeance, and that is exactly what we are seeing now as the SEC is seemingly trying to take down the cryptocurrency market.
It’s a story as old as time. As always, China and the US are always doing the exact opposite of each other. With the US currently clamping down hard on the crypto industry, and even pushing out crypto companies from within its borders. At the same time, China is doing the opposite. They have begun to make it legal and tradable in places such as Hong Kong. Bitcoin mining is slowly coming back to China, and it seems they are opening up to it.
This is the game theory of Bitcoin at work. There will always be countries competing to be the world leader, and there will always be countries whose relationships are tense. At the same time, there will only ever be 21 million Bitcoin. It is global and isn’t dependent on a single country to adopt. However, if a large country does finally adopt it, that is when a stampede rush toward Bitcoin will begin. While the US is pushing crypto out of its borders, and trying to defend the US dollar with everything they have. The rest of the world is trying to find an alternative to the dollar, and the power that it holds over them.
It’s entirely possible that these countries will opt for a currency that cannot be controlled by a single party and also maintains its value. A currency that could make them a lot of money. Something just like Bitcoin. Even throughout all of the FUD, as each day passes, the likelihood of this happening gradually increases.
How about you? Is the US heading in the wrong direction?
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