And so here we are, A little over 11 years since the Satoshi Nakamoto White Paper was revealed and what has this promise of a peer-to-peer system become?
While the digital currency space is arguably in its infancy and the uses of blockchain are being more widely adopted, the ideal of a decentralized economy servicing even the smallest user has largely been derailed.
What we do have is the new elite, the new 1%, i.e. the strangle hold on mining by the mega rich, exchanges, trading houses and whales all manipulate this space to their whims making it more and more difficult for the average person to be involved.
Mining itself has turned from the idea of proof of work (POW) to proof of wealth (POW). They look the same, but the reality is only the 1%’ers are reaping the rewards from the network.
Enter the traditional equities and commodities institutions backed by the federal government and we see rules and regulations designed for the haves instead of the have nots.
Whales, market makers, exchanges, trading houses and now as we introduce futures all are manipulating the market in ways that make them enormous wealth.
In October of 2017 Jaime Dimon of JP Morgan said “I couldn’t care less about Bitcoin” “Bitcoin is a fraud” only to launch their own JP Morgan coin.
CME Group’s Leo Melamed said, “We will tame Bitcoin”, and it seems they have, and by “tame” they meant manipulate so the rich get richer and the rest of us get scraps. He went on to say “We will regulate, make bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules.” And “institutional investors will take part in futures contracts rather than just speculators.” So, the rich get to play and then there is the rest of us.
Facebook prohibits the advertising of cryptocurrency only to work in the background to launch Libra, in essence, creating their own money just like a nation state. In Facebook we trust? I’m not buying it.
When we look at exchanges and trading houses, they have created a problem called custody which was never the design of a peer to peer system and they make massive profits on the fees that are associated with transactions and transfers.
The SEC is dragging their feet with regulations which has in part created a situation where US citizens can’t even open accounts on exchanges in foreign countries. In addition, there is no clarity as to how these instruments are being classified, who does that serve? It serves the elite, the Us exchanges and trading houses who have a strangle hold on our ability to invest.
There is and has been a consolidation of wealth in the cryptocurrency space by the ultra-rich. This monopoly/manipulation of the crypto industry is accelerating.
Make no mistake, as the industry continues to be infiltrated by historically traditional institutions the initial intention of cryptocurrencies to level the playing field, help the unbanked and provide opportunity for the common man slowly fades.
How are we to realize the dream of mass adoption on an even playing field when cryptocurrencies are in the hands of the same people and institutions that have purposely prevented exactly that.
Is this the vision Satoshi hoped for? I think not.
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