Will Jack Dorsey Destroy Bitcoin: Twitter founder Jack Dorsey Who Also Appears To Be Opposed To Freedom Of Speech Wants To Stop The Government From Regulating cryptocurrency – January 5, 2020,
The problem with a Big Government is eventually the Big Government comes after you, although it’s pretty clear that Donald Trump is not a perfect human being, Big Tech made the decision to align with the Democrat Party which is ok if you ask me, but it’s important to remember that historically it’s the Democrat Party who are the political Party of regulations.
Now, because Twitter publically took a Partisan position even censoring the President of the United States, while giving the current Presidents detractors free rein on the platform he founded, he’s now set his sights on escaping government tyranny via cryptocurrencies.
I personally don’t think $50 million dollars is a lot of money for Jack Dorsey, however, the new proposed regulation from the Financial Crimes Enforcement Network (FinCEN) is extremely problematic. As it allows the government to basically turn social media into a financial institution.
My concern with Bitcoin has always been what will happen when the Government starts treating Bitcoin like Gold. I thought one of the dumbest things believers of cryptocurrencies did was compare cryptocurrency to Gold. Gold and Silver is heavily regulated, in a digital fractional reserve system, Gold without the Government would enrich the world and potentially shrink the size of Government, by forcing Government to spend within its means.
From what I know about Bitcoin, I’d consider Bitcoin a unique invention that could be considered an asset but for far different reasons. The limited amount of bitcoins in existence, in my opinion, doesn’t mean much if Bitcoins can be fractioned off, similar to a pyramid.
This doesn’t mean that the foundation of ‘a Bitcoin pyramid’ wouldn’t be strong, but what it does mean is that Bitcoin and Gold are entirely different, cryptocurrencies are very different from Gold and should be labeled as such.
I’ve often written that a Gold Standard working outside of the Government could work anywhere around the world, especially now, because retail dealers could profit selling Gold certificates/notes and the physical gold wouldn’t have to be moved around unless it was called.
All that aside, the unnecessary attention Jack Dorsey is going to put on Bitcoin could be its downfall or the reason why the cryptocurrency universe is able to bypass the regulators. Stranger things have happened on planet earth, so I’m not going to simply count out cryptocurrencies yet, it’s just that I don’t see Jack Dorsey as a good thing for cryptocurrencies.
Some basic information, the proposed new cryptocurrency law would require companies to collect the names and addresses of people if they make cryptocurrency transactions over $3,000, which with the fluctuating price of bitcoin next to fiat dollars could be extremely hard to monitor.
The regulators might as well say $1 because at the end of 2020 Bitcoin went on a tear surpassing $30,000USD for 1 Bitcoin, so in that instance, 10% of a bitcoin at any given time would put Twitter in the FinCEN crosshairs, which means Twitter would have to hire a team just to monitor the fiat price of Bitcoins.
It’s regulations like the ones being offered by FinCEN that suppress the Gold and Silver markets. At the very least Gold and Silver have industrial value, Bitcoin is software and once the government gets involved, it will find willing participants to tinker with the market price of Bitcoins’ to as an example bring down what FinCEN considers a criminal organization.
I thought this would have been common sense when Mark Zuckerberg attempt to launch Libra which is now called Diem. Immediately the regulators and governments worldwide recognized the threat to their monopoly, this is why I personally thought Zuckerberg learned to take a more hands-off approach to politics.
Both Mark Zuckerberg and Jack Dorsey are young and in my opinion shortsighted, because neither the Political Left nor the Political Right has any incentive to allow any medium of exchange to usurp their power. The Chinese Communist Party has already made it clear that its digital currency will be used and Bitcoins will be banned, however, the Chinese Communist Party isn’t dumb enough not to allow Bitcoin to ascend, even the CCP understands that something needs value before you confiscate it(Late-stage Capitalism)
So, from my point of view, Jack Dorsey has made a tactical error, but we’ll wait and see what happens, I’ve seen stranger things happen and I like that the cryptocurrency universe is young, energetic, and rebellious. I’d really like to see if cryptocurrency can break the regulators and it appears Jack Dorsey will help me to get a glimpse into future of cryptocurrencies.
Interesting times ahead!