REGULATION, A PENDULUM THAT KEEPS THE CRYPTOCURRENCY MARKET HYPNOTIZED
On more than one occasion we have seen how a hypnotist is able to control someone's will with the use of a pendulum and a soft voice. As simple as that, the hypnotized person will do whatever is ordered mechanically, such as imitating an animal's behavior or performing acts that normally would not do under any circumstances. However, according to the professional perspective of hypnosis, this is a tool used for therapeutic purposes in which the person never completely loses his will, which means that he can make decisions for himself in the middle of this state.
In a similar way, we can see how society sometimes seems to react before certain events as if hypnotized , that is, although it has the power to decide what is more convenient or wiser, it is carried away by what the hypnotist he says and voluntarily relinquishes his will.
The community of investors and users of cryptocurrencies has also witnessed and participated in this phenomenon. Especially at times when announcements have been made about regulatory measures , which may range from the intention to measure and control the use of these technological-financial tools to the total prohibition of the operations carried out with them.
Such announcements often significantly affect the confidence of cryptocurrency holders, to a point where demand or supply may be so high that prices and the market are drastically impacted, up or down respectively. Especially if we talk about bitcoin (BTC), a cryptocurrency that for a long time concentrated more than 50% of the value of the global market of cryptoactives and that currently shows a dominance close to 40%.
Among the cases where this reaction of the crypto-investors was evident is what happened on September 8, 2017 when, after the suspension of operations in local currency exchange houses by the Chinese government, the BTC price and the value of the Entire market dropped 10% in just one hour. It should be noted that the Chinese exchange platforms were those that had the highest volume of cryptocurrency transactions worldwide at that time.
A more dramatic effect and related to the aforementioned fact was experienced in early February of this year, after the Chinese government announced the prohibition of operations of currency exchanges of cryptocurrencies, both local and foreign, in its territory. Added to this was the refusal on the part of international banks to allow the purchase of cryptoactives with their credit cards and a strong correction that the market had been experiencing, after reaching record prices in mid-December.
On that occasion, the drop was close to 40% in a matter of a couple of days for the cryptoactive market and, for bitcoin in particular, 30%.
As is known, announcements of regulatory or prohibitory measures are commonly made by governmental entities such as central banks, ministries, agencies and financial commissions, as well as by private institutions, such as banks and technology-related service companies. the finances.
In view of how easy it is to predict the response of investors to possible regulations, it is not unreasonable to think about the possibility that the market is being manipulated through this kind of advertising. However, it would be a manipulation that would be allowing the same investors and users of cryptocurrencies ; since it is enough to stop looking at the regulatory pendulum for a moment to rediscover the benefits of the advances of blockchain technology and the decentralized nature of cryptocurrencies and their market.
This is the main motivation of each bitcoiner to continue supporting the use, development and expansion of this technology. Innovations such as SegWit and Lightning Network (LN) should be the main drivers of the increase in the value of bitcoin. So far in 2018 has been evident the great improvement that brought the development of tools such as LN to Bitcoin; which, together with SegWit, has managed to increase the efficiency of the blockchain's operation by decreasing the average cost of transaction fees . Although it is still being refined, LN is already operational and a number of Lightning applications ( LApps ) are being built in compatibility with this network.
Under this perspective, if the developers, miners, investors and users of a cryptocurrency (driven by the ideals of decentralization and financial freedom) are the main responsible for their growth at the technological and adoption level (factors that should directly affect their value in the market) then there is no reason to put into the hands of bankers and governments the power to influence the price of a decentralized cryptoactive .
REFOCUSING THE LOOK
Regulations are undoubtedly necessary, especially when they seek to protect the user and the investor from those who seek to benefit from deception and cheating. But that is the only incidence that these measures must have in the blockchain ecosystem. It does not make sense that a regulation has the power to sink the value of an instrument that was born with the aim of freeing its users from the yoke imposed by the institutions that dictate these rules.
Bitcoiners in countries such as Russia and China , which have experienced strict regulations regarding the use of cryptoactives and exchange houses, have managed to keep the cryptocurrency market moving in the most creative and astute ways possible. Something that has allowed the continuous growth of the crypto community in these regions and shows that the relevance of cryptocurrencies can not be hidden behind a series of laws, created with an obvious level of ignorance or ignorance of the concept that defines this technology and the ideals that he defends.
Advances in blockchain technology and its adoption are what should mark the real value of a cryptocurrency , and not the intentions of regulation of an entity, which very likely end up being erroneous, since they insist on fitting cryptocurrencies in a framework that it is not made to measure , as has happened with the SEC, when trying to classify certain crypto-assets as financial values or assets.
Therefore, it is time to remove the look of that pendulum that hypnotized the community with fears about regulations and focus on supporting and promoting the development of cryptocurrencies, as well as the principles under which the first one, bitcoin (BTC) ), was created.
¿Open To Debate On The Subject?
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by alfonzo5 from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.