A note on cryptocurrencies and government regulation
This post is a double recording from my Telegram channel. I wanted to conduct a small survey and understand the attitude of Habra residents to cryptocurrencies.
You probably already saw the news that France and Germany rejected Libra in the European Union. And many were so outraged by the desire of these countries to defend monetary sovereignty that, in their criticism, they reached a certain antithesis in which states appear in the person of the Illuminati, holding back technological progress in order to maintain dominance over you, dear friend.
It is long and difficult to talk about cryptocurrency grace or economic chaos that came with absolute freedom of crypto circulation. So let's talk about the technology itself with the product / market fit categories. Yesterday, the transaction volume of the entire crypto variety amounted to $ 48 billion, according to oinMarketCap . And in January it was 3 times less, and 3 years ago it did not even reach a billion.
What will we compare with? To begin with, I want to help you realize these billions. On the World Gold Council website you can see that the average daily trading volume of antediluvian gold in 2018 amounted to $ 112 billion, US bonds - $ 485 billion, S&P 500 shares - $ 124 billion, euro / yen - $ 79 billion, dollars - $ 469 billion. money equivalents that you’ll guess and you will realize that crypts are extremely small in the global turnover of financial instruments.
Now let's look at the consumer market. In 2018, WeChat Pay had a transaction volume of $ 41.5 trillion. If we divide this number by 365 days, we get a value of $ 112 billion. I want to remind you that money transfers in the Chinese messenger appeared in 2011, and the crypto has been around for more than 10 years. It is also important to add that the first attempts to regulate cryptocurrencies began only recently.
That is, nothing prevented the crypt from having time to penetrate everyone’s pocket. But she couldn’t, and WeChat Pay could. But besides WeChat Pay there is also Visa, MasterCard, PayPal, a lot of other things and trillions of dollars in cash. By the way, the Global Cash Index claims that 31% of all purchases in the United States for 2018 were made using physical banknotes, 27% - using debit cards, 18% - by credit. And these are the states where the largest consumer market is. States where the digital dollar barely defeated the classic.
That is, the "real figure" has not saved us from archaic candy wrappers and coins, and the ephemeral result of senseless sorting of the hash will get rid of both? Suppose yes, but the question “when” will interest only futurists and biased, not pragmatists. And please leave your evaluative judgments about the shortcomings of fiat in front of the crypto.
Let’s better talk about crazy volatility and speculative value, in which a “serious” attempt to match the crypt with the same gold looks infantile. And we also admit that the gray economy provides the cryptocurrency trading volume to a greater extent, and the consumer market as such does not exist. Yes, there is drugs, exotic and private transactions, but the crypt is not interesting to the mass audience.
Why am I all this? The cryptocurrency problem is in the product / market fit or in our high expectations from it. And the states have not yet managed to hinder the development of libertarian commodity-money relations, for any technology at the beginning of its path is an elusive wild beast. Look for reasons in the technology itself.
You probably already saw the news that France and Germany rejected Libra in the European Union. And many were so outraged by the desire of these countries to defend monetary sovereignty that, in their criticism, they reached a certain antithesis in which states appear in the person of the Illuminati, holding back technological progress in order to maintain dominance over you, dear friend.
It is long and difficult to talk about cryptocurrency grace or economic chaos that came with absolute freedom of crypto circulation. So let's talk about the technology itself with the product / market fit categories. Yesterday, the transaction volume of the entire crypto variety amounted to $ 48 billion, according to oinMarketCap . And in January it was 3 times less, and 3 years ago it did not even reach a billion.
What will we compare with? To begin with, I want to help you realize these billions. On the World Gold Council website you can see that the average daily trading volume of antediluvian gold in 2018 amounted to $ 112 billion, US bonds - $ 485 billion, S&P 500 shares - $ 124 billion, euro / yen - $ 79 billion, dollars - $ 469 billion. money equivalents that you’ll guess and you will realize that crypts are extremely small in the global turnover of financial instruments.
Now let's look at the consumer market. In 2018, WeChat Pay had a transaction volume of $ 41.5 trillion. If we divide this number by 365 days, we get a value of $ 112 billion. I want to remind you that money transfers in the Chinese messenger appeared in 2011, and the crypto has been around for more than 10 years. It is also important to add that the first attempts to regulate cryptocurrencies began only recently.
That is, nothing prevented the crypt from having time to penetrate everyone’s pocket. But she couldn’t, and WeChat Pay could. But besides WeChat Pay there is also Visa, MasterCard, PayPal, a lot of other things and trillions of dollars in cash. By the way, the Global Cash Index claims that 31% of all purchases in the United States for 2018 were made using physical banknotes, 27% - using debit cards, 18% - by credit. And these are the states where the largest consumer market is. States where the digital dollar barely defeated the classic.
That is, the "real figure" has not saved us from archaic candy wrappers and coins, and the ephemeral result of senseless sorting of the hash will get rid of both? Suppose yes, but the question “when” will interest only futurists and biased, not pragmatists. And please leave your evaluative judgments about the shortcomings of fiat in front of the crypto.
Let’s better talk about crazy volatility and speculative value, in which a “serious” attempt to match the crypt with the same gold looks infantile. And we also admit that the gray economy provides the cryptocurrency trading volume to a greater extent, and the consumer market as such does not exist. Yes, there is drugs, exotic and private transactions, but the crypt is not interesting to the mass audience.
Why am I all this? The cryptocurrency problem is in the product / market fit or in our high expectations from it. And the states have not yet managed to hinder the development of libertarian commodity-money relations, for any technology at the beginning of its path is an elusive wild beast. Look for reasons in the technology itself.
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