Why China (or governments) can’t stop crypto. How Chuck Norris proves this fact from communist history
Hello fellow Steemians,
Being born and raised in Cuba (currently living in Miami) I’m very familiar with how communist governments operate and also how the black market and decentralized networks grow, resist their power and eventually fundamentally change or topple them.
In order to understand the past, present and future of the decentralized crypto networks I believe one of the best comparisons from history (that has already played out) would be that of the illegal importation of westerns films on VHS cassettes to communist Romania in the late 1970s and 1980s and the “El Paquete” phenomenon (currently playing out) in Cuba.
The widespread circulation of pirated VHS tapes in Romania corrupted the very ideological bases of the regime, contributing greatly to its collapse on December 1989. There were many decentralized “sneaker networks” that spanned the entire country back them and supplied every household with fresh western movies every week. No matter how much the then dictator Nicolae Ceaușescu, tried to stop this, it was completely impossible for the regime to crush it because his own officials were corrupt, were profiting from it, and also consuming it with their families every night.
The Cuban El Paquete
In Cuba, we have a very similar phenomenon currently playing out called “El Paquete”. It’s a collection of foreign multimedia files that circulates throughout the entire island and bypasses the government’s monopoly on information. The government likes to think they control it (see the Five Stages of Grief below) but they really don’t since there are as many offshoots of it as there are Cubans. Most of its content consists of American action movies, South Korean glamorous and colorful capitalist soap operas, Miami TV shows that openly criticize the dictatorship, Discovery and History Channel documentaries etc, hardly the kind of content that would be "blessed" by the Cuban Stasi trained government censors.
Corrupt officials are the main source and also consumers of all this content never before allowed in the island. Only these officials have access to the high speed internet connections required to download it and later sell it to street distributors.
The ideological bases of the formerly entrenched communist regime from the 80’s are completely corrupted today thanks to this, not even they believe in communism anymore. It’s only a matter of time before the regime collapses or is replaced silently and subtly by a completely different version of it. Some might even say this has already happened since they are embracing state capitalism more and more every day.
The Cuban “El Paquete” explained on this video by Vox
In both Romania and Cuba they passed through the five Stages of Grief that governments and banks are going through right now with crypto.
The five stages of grief - Government reactions to decentralized networks
Deny it (it’s too small to have an impact, they say at this stage)
Ban it in anger (this thing is growing, we have to crush it)
Realize impossibility of a ban (because of their own corruption mostly, they use it themselves but don’t want the common folk to use it)
Try to control it, coopt it, and mold it to their likes. They believe their own illusion for a while and think they have managed to do it but the reality is they have lost control completely. (This is the stage the Cuban government is at right now with “El Paquete”)
Capitulation and collapse of the monopoly. The old regime is fundamentally changed or violently toppled.
In China, they will go through these stages as well, corrupt officials will be the main users of crypto currencies to protect their wealth and profit from the arbitrage opportunities in the black market. Eventually, the Chinese financial landscape will look very different from what it is today. Those same corrupt officials will fight tooth and nails to secure their elite status in this new order. It’s very unlikely they will protect and move their wealth around the world with Yuans or devalued Dollars…
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Happy crypto investing!
Keep it up..
nicely done
“You can't hold a man down without staying down with him.”
― Booker T. Washington
Regulating Cryptos will hurt the Chinese government in the long run. They have a very myopic approach.
History has proven time and time again that free markets lead to development and prosperity.
Amen to that mr! Just look a satellite pictures from South Korea and North Korea and compare the lights... Hey what's up with the Soros pic?
I dunno, really. I write about his wicked ways quite a bit so I thought I'd add him as a profile pic.
Haha cool! As long as you are not him collecting steem in disguise for killary haha
Wow, I really love your insight to this very important issue.
You having experienced it, really adds to the credibility of what you are saying also.
Nicely done.
Upvoted and resteemed.
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Thank you for commenting big silver. BTW, I also have some silver in my portfolio, I'm not all about cryto only, I love me some heavy metals too as insurance against the next global crisis ;)
Agree completely.
I have much more in silver than I do in Crypto. :)
good morning friend
Good morning mr Prash!
Excelente post amigo. Te sigo. saludos desde Venezuela.
Interesting view of facts, i do not agree 100% but your text give me some thoughts to consider, thank you!
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interesting and informative post... thanks for sharing upvoted!!!
Spot on...you nailed it.
Thank you for the insight into Communism...something that most of us dont have...an inside view.
Even without that knowledge, I know that China has no prayer of banning cryptp (I believe they dont want to anyway...they want to control it, not ban it). People say the Chinese wont be able to be buyers....bull crap...much of the Chinese money is out of China. In the US from 2013-2015 many single family homes were bought for cash using...wait for it...Chinese money. They also were investing in gold mines, copper fields, and probably '57 Chevys...anything to get out of the Yuan.
The Chinese will buy crypto regardless of what the Chinese government wants. There are more technologies coming about that will allow the chinese inside the country to bypass the state's filters and get on the world wide web.
It is a done deal...cryptos are beyond government control.
By the way, it looks like Dimon is at stage 2 of grief...lashing out like a little kid.
I have great expectations from descentralized exchages. Already own some bitshares to play with this new technology. Communism is the worse thing to have happened to humankind but it can't survive with so many liberating technologies around. I'm optimistic. Thanks so much for commenting taskmasfer as usual! My best regards
I agree although the system in the US, while not as bad as communism, is still a banker run system meant to enslave. While not quite as overt as in Cuba or China, there still is a definite caste system where only the certain few at the top profit while the rest are left with scraps.
That is why I am a big fan of crypto...picks some more up when I awoke this AM including some steem...
I think the entire sector will be huge....decentralized exchanges will only add to it.
BTW, did you notice how close "Dimon" is to "Demon". In Spanish we would actually pronounce the "i" as the "e" in "Demon", spooky right? Always nice to talk to you!
LOL I never noticed that and get the pronunciation....studied some spanish and italian...enough to know how the vowels are pronounced.
Many believe the international banksters are devils...or reptilians...or arcons....David Icke has a whole series on that stuff if that is your thing LOL
Either way, he is a snake and a crook along with the rest of them....I will love watching (and helping all I can) the demise of the banksters. They enslaved the world for far too long.
Well, I do believe they are demons, just not the reptilian kind... ;) Reptiles would be offended by the crimes these people make. He however provided an unintended good service this time, thanks to him I bought the millionth of supply of some of the top coins I didn't have yet on the very cheap. Saludos