The UNs may ban crypto but this would only be a catalyst for growth, and here's how.
We've seen this time without numbers, a certain nation steps up to restrict something but it only becomes even more powerful, there's always a better chance of getting rid of things if allowed to lay out its effects with no restriction.
An example of this is the hard drugs market, citing cocaine as it's amongst the widely termed illegal drugs for sale and consumption. In 1920, cocaine was first made illegal by the Dangerous Drugs Act.
How did this all stop the substance from circulating?
The short answer is: it didn't!
In 2019, a report stated that Americans' Spending on Illicit Drugs Neared $150 Billion Annually, now the first thing to note is that what we're looking at here is only American’s market size data, which cannot exactly capture all global figures. Another thing to note is that this is actually a rivalry figure when compared to the inflow on alcohol.
Transnational Crime and the Developing World report estimates the size of the global illicit drug market was between US$426 and US$652 billion in 2014 alone
Despite the imposed restrictions, these prohibited drugs have well enough found their way into the global markets. That said, let's things back to crypto and understand the similarities and what keeps it at a corner of greater impact.
Utility is a dangerous factor to oppose
Naturally, we're all created with freedom, just into an economy that forcefully takes that in exchange for worthless things. Notwithstanding, it's one thing to create a law, another is to actually get people to follow it.
One fact will always remain in the system, and that's that value is created when utility is sensed! Is it true that crypto has been a part of the criminal tools to move value? Yes, it is, but that doesn't near the value that passes through the traditional banking system.
But what's here to note is that once people find usefulness to something, you're only fighting a worthless fight trying to stop its adoption! Drugs are physical properties, even easier to spot and control, but how will the government control crypto transactions that literally happen every minute?
This is apparently what the UN has to say about the industry, citing that the risks overlap the benefits, but if we fall back to the risks of hard drugs, we see people risking a lot to acquire them because to them, it's useful and the risks really don't matter! There are similarities, but of course not the same.
Crypto's growth is a product of utility, putting a ban on it won't stop its adoption, the fact remains that the system will always build around the centralization of free money. The effects might be even crazier and I sense this to be a catalyst of massive growth. The Chinese couldn't kill the markets, what makes the UN think urging other countries to do the same will? Have they learned nothing from the past?
Maybe developments are a fat joke to them as they operate a currency-based system that's backed by absolutely nothing, but all of that is phasing out as crypto opens people to a new world with utility-powered currencies, with no centralized regulatory body.
It would be fun to watch the governments help things move faster, it's a matter of time and we'll see more conversations citing risks that already exist in the financial system while ignoring the solutions it brings to the table.
Posted Using LeoFinance Beta
