Crypto is bouncing a bit today, but bitcoin’s price is stuck in a pretty tight range between $32,000 and $35,000.
Just as an exercise, let’s take a quick look at one of crypto’s potential short-term headwinds.
The primary risk is regulatory. We’ve seen what China did by essentially shutting down all crypto mining in the country. It caused a massive shift in mining power from east to west.
This gives America and other western countries a huge opportunity to gain market share. However, our politicians may not play nicely. See CoinDesk’s recent piece “Elizabeth Warren Gives SEC July 28 Deadline to Figure Out Crypto Regulation.”
This is a little worrying, but it could actually turn out to be OK in the long run. There are an incredible amount of scam projects happening in crypto. If the SEC focuses on taking down scams — and not legitimate operations — it could actually help the crypto market.
But I’m concerned regulators will paint all crypto players with the same brush. They may crack down on exchanges and maybe even miners.
Crypto owners need to stand up against unhelpful legislation and let our representatives know our feelings on the issue. I believe there are enough of us out there now that we have the power to push back. If you’re interested in this type of action, check out Coin Center. It’s a bitcoin think tank that supports a range of positive initiatives on behalf of the crypto community.
I expect many more crypto nonprofits and think tanks to pop up over the coming years. We should support them and help spread the word. By doing so, I think we can push back against legislation and regulation that would harm crypto in the long run.
Have a great weekend, everyone!