The Not-So Decentralized Crypto Market
Following the successful launch of the Venezuelan-backed Petro coin, it now appears that numerous other countries are ready to get in on the crypto action. The coming year should prove to be an interesting one, as countries such as India, Switzerland, Russia, and Mexico have all announced their plans to develop their own respective coins in the near future.
Yes, it appears everyone wants in on that sweet Satoshi pie. While all this hype is great for crypto adoption, it appears many have forgotten the golden rule of crypto - Decentralization is key. (Rule 2 HODL BTC)
Cryptocurrencies didn't start out as just some way to transfer money online as many misunderstanding politicians believe. Cryptocurrencies read almost as a mission statement against the tyranny of the centralized bankers. At their core, they represent the evolution of mankind onto a higher form of economics through the use of ungoverned decentralized mathematic equations. To put it in easy to understand terms; taking the decentralization out of the cryptomarket is like taking the cream out of the center of Oreos. It’s still a cookie but…uhhhh.
Don’t Be Stupid Coin
These countries are trying to capitalize on the fact that most new crypto investors are unaware of the true potential these cryptic codes contain. When a country such as Venezuela decides they are going to create a centralized crypto, they are in essence making a coin that is easier to hack than traditional forms of money.
Blockchain More like Buttchain
The entire point of a blockchain network is to remove any one point of failure. Once you add in a master node with the ability to alter the blockchain, you also produce a huge flaw in the system that can result in the entire blockchain becoming compromised. Basically, a hacker needs to only access their system to do some serious damage to the entire ledger.
What is going to happen when one of these countries get their prize crypto completely destroyed in cyber warfare? Only time will tell. It’s interesting to see the sudden upsurge in cryptocurrency development coming from these countries, as they most obviously are just looking for another way to tax their citizen’s pockets. To put it bluntly, in terms of use and mission, there is no difference between a fiat currency and a centralized cryptocurrency.
Everyone Better Get on the Blockchain
That’s the funny thing about a technology as advanced as distributed ledger protocols, they make it so that the competition has to upgrade or they are unable to compete. Death through efficiency.…..brutal. It’s like having to use typewriters while your competition has computers. You couldn’t compete and it would only be a matter of time before your business was slowly put to rest. (Lauren Hill in the background singing killing me softly)
How the Market Took a Turn for the Center of the Earth
Centralization really took hold of the cryptomarket with the growth of Altcoins last year. As profits soared, people became a little less worried about the core message of the coin and more focused on trying to 10x their investment through small ICOs. Penny coins blew up and nobody gave a flippity flop about the truth…the real reason for the Bitcoin season…decentralization.
More Cryptos the Merrier
It is hard to see the value of a cryptocurrency that can be produced at will and is centrally controlled. It can be expected that regulations will be needed to keep these rickety coins afloat. Fortunately for some of these hack coins, the market is still so new there should be room for growth in all sectors. There is already a high amount of regionalism seen in the marketplace with rumors of coins such as NEO being allowed to operate in some form in China.
Sanctions Deez Nutz
Perhaps one of the most unexpected events in this whole crypto transformation is the surge of countries under sanctions who are trying to start cryptos. This development could be bad for crypto as it could cause the US government to do what it does best and OOOOOverstep its boundaries.
What you think Steamaloos ….Do you think the US is going to try and enforce global crypto law…. And can they cryptomarket be stopped at this point? Let us know in the comments below.