The fight between crypto and governments is “just getting started,” according to ShapeShift CEO Erik Voorhees. Voorhees believes that the battle between the U.S. government and the crypto industry has only just begun, despite the unprecedented regulatory pressure crypto has been facing recently.
Voorhees believes that governments are still not taking crypto seriously as a threat to the state monopoly over money. He sees the recent crackdown on crypto as an opportunistic response to the collapse of fraudulent cryptocurrency companies last year.
Why are governments fighting crypto?
Governments are fighting crypto for a number of reasons, including:
- Loss of control: Cryptocurrencies are decentralized, meaning that they are not controlled by any government or central bank. This gives governments less control over the economy and the financial system.
- Tax evasion: Cryptocurrencies can be used to evade taxes, as they are difficult to track.
- Money laundering: Cryptocurrencies can be used to launder money, as they can be easily transferred anonymously.
- Consumer protection: Governments are concerned that cryptocurrencies are risky investments and that consumers could lose money.
What is the crypto industry doing to fight back?
The crypto industry is fighting back against government regulation in a number of ways, including:
- Lobbying: The crypto industry is lobbying governments to create more favorable regulations.
- Litigation: The crypto industry is challenging government regulations in court.
- Education: The crypto industry is educating the public about cryptocurrencies and the benefits of decentralization.
What does the future hold for the fight between crypto and governments?
The fight between crypto and governments is likely to continue for many years to come. Governments are unlikely to give up their control over the economy and the financial system without a fight. However, the crypto industry is growing rapidly and becoming more sophisticated. It is possible that the crypto industry will eventually be able to overcome government opposition and achieve widespread adoption.
What does this mean for crypto investors?
The fight between crypto and governments is a risk factor for crypto investors. However, it is important to remember that cryptocurrencies are a new and innovative technology. It is possible that the crypto industry will eventually be able to overcome government opposition and achieve widespread adoption.
Crypto investors should carefully consider their risk tolerance before investing in cryptocurrencies. They should also do their own research before investing in any cryptocurrency.
Additional tips for crypto investors
- Invest for the long term: Cryptocurrencies are a volatile asset class. Investors should be prepared to hold their investments for the long term.
- Diversify your portfolio: Investors should not invest all of their money in cryptocurrencies. They should diversify their portfolios by investing in other asset classes, such as stocks and bonds.
- Be patient: It takes time for new technologies to be adopted. Crypto investors should be patient and wait for the crypto industry to mature.
If you are considering investing in cryptocurrencies, I encourage you to learn more about the technology and the risks involved. You should also consult with a financial advisor to get personalized advice.