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The Misguided US Government War on Crypto and Why Crypto Will Win

Validated Individual Expert

President Biden’s newest budget proposal includes a 30% tax on electricity used for mining Bitcoin. The tax even applies to miners using renewable energy. Effectively, Biden is telling the miners, “Get the hell out of here!” He also wants to eliminate wash sales that allow US crypto investors to harvest tax losses.

The US government attack is relentless. So far, we have a lawsuit against Ripple, an outright attack on Binance, a staking fine that will cripple major exchange Kraken, and an increased tax attack against the crypto industry and investors.

However, there is quite a bit more to this attack. The government constantly spreads fear about crypto exchanges, which they refuse to regulate. In addition, the government is threatening banks that want to expand their crypto services and are throwing around the idea that all cryptos not named Bitcoin are securities.

In response to these attacks, coupled with a Fed hellbent on breaking the economy, Bitcoin and the crypto asset class are succumbing to negativity and fear. Of course, it doesn’t help that crypto’s friendliest bank, Silvergate, is shutting down and further constraining the rails between traditional finance and decentralized finance.

While all of this pressure from the government may make many investors question having their portfolio in crypto, I am taking the opposite stance. The government is throwing everything it can at the industry and isn’t stopping anybody. Innovation is happening.

Meanwhile, the fiat monetary system is approaching its breaking point. The US is raising its debt ceiling for nearly the one-hundredth time, and prices aren’t going down even though interest rates are highs not seen in over a decade.

Let me explain why the government won’t win this fight and is blowing an enormous opportunity to continue being the world’s economic leader.

Reason #1: The population is waking up

Ordinary people are feeling the pain of inflation. After being cooped up for a couple of years and enriching the top 1%, people realized central banks’ increasing the fiat money supply at obscene levels wasn’t a good idea. Of course, they will never admit this, but most inflation directly correlates with the central bank’s loose and reckless monetary policy.

These same central banks are trying to build a brick wall to stop this inflation train by raising interest rates…but it’s not working. On the contrary, now ordinary people are being hit with an economy slowing down and persistently higher prices for everything.

People are tired of seeing their savings accounts devalued by expanding the money supply and rewarding the riskiest actors. They recognize that the government completely controls the stock and real estate markets. And many are deciding they want a better alternative.

Bitcoin and crypto provide them with that alternative. But unfortunately, the mainstream media portrays Bitcoin as a risky asset. Heck, I include the disclaimer at the end of my articles to cover myself.

However, Bitcoin will keep growing in value as more people can identify with what it provides- a digital financial instrument governed by programmed rules. You can’t raise the Bitcoin supply 100 times like the debt ceiling. And you can’t simply hit print and generate money funded by debt with Bitcoin.

The narrative for Bitcoin grows stronger as each dollar loses its buying power. Once normal people are enlightened about this concept, they can’t go back.

Reason #2: Everyone wants in on crypto

Blackrock, the world’s largest asset manager, is advancing in the crypto realm. So when the most powerful financial establishment decides to launch a Bitcoin trust for institutional investors, it means we have surpassed the tipping point.

Everyone with half a brain understands how Bitcoin and crypto can make us more productive, efficient, and wealthier. Just as the internet increased people’s knowledge and access to the stock market, digital assets open society up to infinite use cases and benefits.

At a simple level, value can be transmitted in seconds to minutes for extremely low costs at any moment. In a more abstract sense, digital assets can represent ownership of anything in the physical world. They can be used for entertainment, education, collateralizing, social organization, and numerous other sectors and categories relating to everyones’ lives.

If 21% of Americans own crypto, the leaders will be unable to retain their positions if they attack crypto too hard. When elections are won and lost by a razor’s margin, it is politically and fundamentally idiotic to write off 21% of people who probably vote.

Reason #3: They can’t fight the future

In the war of humanity vs. progress, the progressive side always wins. Imagine traveling back two hundred years and having a smartphone connected to our current internet. It would easily be the most valuable item in the world. Today, nearly everyone has access to a smartphone.

In less than one century, everything will be digital. Our offices won’t be messy with papers and folders because papers and folders will be obsolete. Instead, think of everything you can do from your couch today…Watch millions of television and movie programming, order food from your favorite restaurant, access the internet from your smartphone, read nearly any book on an e-reader, and meet your future date, lover, or spouse.

Soon, technology will allow us to have entire experiences from our couches. For example, if your child lives across the country, you can have a cup of coffee with them while you are in your living room and they are in their kitchen. Imagine being at your favorite music artist’s concert or a sporting event without dealing with the traffic, expensive beer, or rowdy crowd members.

I’m not here to say our digital world will be better. I may be like the old ignorants running the country, saying, “things should be the way they were because that’s what I’m comfortable with.”

But I’m not an idiot. Kids want smartphones more than bikes. People want likes more than they want sex. YouTube or TikTok is more compelling than reading a book or talking with a stranger. Even having someone else cook your food for you isn’t enough. Now people expect it delivered to them.

Fighting Bitcoin and crypto hurts everyone.

The governments are all trying to build digital financial rails on the blockchain, but they are starting about 13 years too late. Instead of financial freedom, they dream of monitoring all spending, controlling the money supply to the penny, and gaining complete domination over everyone by controlling their money (also known as freedom).

You may read this and think, “This guy is a nut. He needs to take off his tinfoil hat and sell his Bitcoin.” And you may be right. But ask yourself, “in your lifetime, do you feel that today, your financial position is more determined by your actions or what the government is doing?”

As people break free of the financial constraints we take for granted and recognize that we are responsible enough to handle our finances and wealth, the Bitcoin and crypto asset class will only grow.

The governments that embrace the future are the ones that will thrive the most as we segue into a digital society. If the US government wants to fight innovation, progress, and freedom, it will only harm its citizens.

Share your thoughts in the response section. Let me know if I am a nutjob or if these ideas resonate with you. And if you haven’t researched or considered Bitcoin or crypto, I would encourage you to do so today.

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