IF you wanted me to categorise where we are just now in crypto land, I would have to say in a state of flux.
True, we don’t have the 47th )and 45th) President of the US of A installed yet, and hence the actual policies are not as yet entirely clear.
We are all holding our collective breath to see what emerges.
That said, Trump’s stance on crypto is entirely different from Biden and the Democrats. Interestingly, Kamala and her lot swung towards crypto as the campaign went on, as well they might.
A lot of people own some form of crypto in the States and they are in no mood to have the ground whipped out from under them. From what Trump said before the election it looks as if he and his people are going to let regulation rip in the States.
I wouldn’t be surprised if once inaugurated there are a slew of new coins coming to market with the sort of business plan once enjoyed by near relatives of The South Sea Bubble – “An undertaking of great advantage, but nobody to know what it is”. You don’t need to be a genius to see that describes crypto and blockchain pretty accurately for the vast majority of the population.
Homo Economicus (that’s most of us) has a desire to increase what he has and crypto, by its very nature and perceived wisdom is a quick way to do that. Unfortunately the people who make a lot out of it are actually very small in number. More than 70% lose money one way or another. As time goes by I would expect crypto to revert to the mean of Tradfi – everything always regresses to the mean given time.
In the UK we are sitting waiting for the other shoe to drop. Current Government policy is so wrong as to beggar belief.
It was as far back as 1931 that a certain A Rogers propounded the absolute truism: “The Government cannot give something to someone without first taking it from someone else.”
He said much else but has mostly been discredited for his support for the Nazis and as a holocaust denier, and that from a Baptist Pastor. But that doesn’t alter the truth of that particular sentence.
Unless I have completely misunderstood the last budget of Rachel Reeves, the government is taking lots of money from various productive elements in society and giving most of it to the non-productive or economically inactive. That’s not a recipe for growth, that’s a recipe for bankruptcy.
Say what you like about Trump, he is economically literate. The tax breaks he enacted during his first Presidency have without a doubt kept America at the forefront of economic growth. If you care to you can read thousands of endorsements of how the breaks helped businesses of all sizes and individuals by the million. And his dealing with Covid (say what you like again) economically had a much more beneficial effect than for example the UK’s statist approach.
We are still living with the consequences whereas America has mostly now escaped.
I was reminded the other day of the Ferengi. In case you don’t recall they are the people who undertake all business and commerce in Star Trek. Which is interesting as elsewhere in the series it says you don’t need to buy or sell anything as it is all provided.
But still the Ferengi – possibly the most avaricious and cut-throat businessmen there have ever been – thrive enormously.
They wrote 285 Rules of Acquisition. Having found them again I shall almost certainly talk about them another time as circumstances dictate, but for now I leave you with rule 269.
“Never purchase anything that has been promised to be valuable or go up in value”
Ring any bells?
Temple Melville, CEO of The Scotcoin Project CIC
