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The Attack on Crypto

Validated Individual Expert

The atmosphere in the cryptocurrency market has been changing recently, have you been able to feel it? All of a sudden, the US and other powerful governments around the world have taken an extreme interest in the cryptocurrency market, and have begun to attack it after years of paying little to no attention to it. Perhaps it has grown large enough that governments finally recognize the power it has. How it could be the catalyst that results in the governments losing control of their largest strength; money.

As the famous phrase goes; first they ignore you, then they laugh at you, then they fight you, and then you win.

The fighting stage has officially begun. Bitcoin and crypto are about to enter a fight for its life.

To understand how this battle is going to play out, you first need to understand how governments operate. The smart governments won’t come out directly and announce that they are banning cryptocurrency. Instead, they like to operate more behind the scenes. Slowly manipulating the market and making moves that make it much more difficult to participate in this market. Or, they will try to destroy the image of this market to such a degree that you won’t even want to be involved with cryptocurrency any longer. If you have been paying attention to the market, it’s likely you have already noticed this happening.The atmosphere in the cryptocurrency market has been changing recently, have you been able to feel it?

Attack on the Crypto Banking System

All of a sudden, banks have begun fleeing the cryptocurrency market. Perhaps it is a result of the FTX fraud and banks aren’t wanting to be associated with this industry at the moment. But it also could be that banks have been instructed by governments to leave the industry. With the goal being to make the on/off ramps of crypto to fiat much more difficult. If people aren’t able to buy crypto with their cash, then buying crypto altogether becomes a much more difficult process.

As always, banks are likely “quietly” quitting the crypto industry as well by raising the fees and rates that they charge. The end result is that it becomes much more difficult for crypto exchanges to partner with them and remain profitable. This is exactly what happened recently with Binance when they decided to temporarily suspend fiat withdrawals. Binance was the first, but this trend is likely to continue and will only become worse.

Attack on Staking

CEO of Coinbase

Unfortunately, that isn’t the only attack that is being thrown toward crypto. Rumors are that the US government also has its sights set on banning staking. Besides giving people full control over their own money, one of the real benefits of crypto is that it allows people to earn great passive income by staking. It’s theorized that holders of the best cryptocurrencies that offer staking will someday earn enough to live solely off of that.

While the government speaks a different game saying that they want to help people escape from poverty and finally have tools to improve their lives. The truth is that they don’t want this to happen. For the country to run smoothly, they need both poor and rich people. They’d actually prefer to keep you right where you are. And so they must “protect” you from being able to earn a passive income from staking. All the while hoping that if they remove one of the “killer features” of crypto; people will begin to lose interest in it.

The SECs Attack on Crypto

Next, we move on to the SEC. Not only has it been attempting to delay the growth of the cryptocurrency industry, but it has also been attacking it at the same time.

Most analysts have agreed that the one decision that could instantly bring heavy adoption to the market is the acceptance of a US Bitcoin Spot ETF. It’s estimated that this alone could propel the price of BTC up to $100k. However, the SEC has refused time after time to accept it. Even though there are already countless spot Bitcoin ETFs in other large countries around the world. Most notably our friendly neighbor to the north, Canada.

Instead, the SEC has accepted multiple futures-based Bitcoin ETFs. While this was a bullish factor in the price of BTC going up towards the end of 2021. The truth is that they accepted these because they can easily be manipulated to control the price of Bitcoin. As the days go by, it seems that this is their real goal.

They have also gone on the attack, claiming that nearly every cryptocurrency other than Bitcoin is a security and that they will be going after them. Just ask owners of XRP and LBRY how this badly affects users. While the SEC's original purpose was to protect users, it seems that they have gotten lost along the way and have a completely different purpose now. Keeping the status quo and not allowing crypto to take over.

FTX Conspiracy

Get ready to put on your tin foil conspiracy hats. This is just a conspiracy theory at the moment, but if we have learned anything over the years. It is that sometimes where there is smoke, there is fire.

The theory is that SBF and FTX were government plants to destroy the cryptocurrency industry. The plan was for FTX to grow even larger and become the #1 exchange in the world. And then it would go under similar to what we saw actually happen. With that kind of perfect timing, they were hoping that it could be a death blow to the crypto industry that it could never recover from.

However, perhaps due to a few CZ tweets, and then mass panic withdrawals from FTX we learned much sooner than anticipated that the exchange was insolvent. While it was a painful event to the crypto industry that did extreme damage. The truth is that it could have been even worse if it happened a few years later. Something to keep an eye on is what kind of jail-time SBF receives. If it is much shorter than expected, the conspiracy theories will be spreading like fire. While this is likely just a conspiracy theory, it is interesting to think about.

One thing is certain. Bitcoin and cryptocurrency won’t be backing down and therefore we should expect governments to fight back even more in the future. Governments aren’t likely to give up their power freely and will do everything within their power to keep it.

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