Just a couple of things to consider.
The market always overreacts. Bitcoin is not going away. Blockchain is not going away. Cardano is not going away.
Congress has to do some saber-rattling. Libra is going to be built no matter what the news hype is. The main reason why Congress is not going to stop it is that Facebook, Google, Microsoft, etc. is their lobbies pay billions of dollars to Congressmen / Congresswomen. Congress being what they are, will not turn away that money.
What will come out of this is that there will be regulation - which we all have seen coming - including Charles Hoskinson. So those cryptos that are adaptable and can meet the meta requirements of the US and other governments, will succeed. That is why we are seeing foreign exchanges like Binance create specific US branches to meet government reporting requirements. Because of reporting and regulations, the IRS and Congress will not turn away crypto because it will be another avenue of income for the US government.
What we are witnessing is the maturing of cryptocurrencies. This maturing process is going to cause a majority of the alt-crypto currencies to disappear. This is a good thing.
- The market always over reacts. (no laws have been passed)
- Cardano is financially sound.
- It is built by the top software engineers, mathematicians, and cryptographers with sound engineering and mathematical principles.
- Congress is going to put on a show. But in reality, they are not going to turn away billions of dollars by lobbies to their campaigns and the IRS is not going to turn away a revenue stream.
- The industry will some regulation.
CONSIDER THIS A GREAT BUYING OPPORTUNITY!
I have listened to the full hearing (https://www.ccn.com/news/david-marcus-senate-facebook-libra-crypto/2019/07/16/). Basically trust issues with Facebook that needs to be resolved (given history of many previous mishaps.) Also several senators highlighted this was the future and important for economic growth and not a single one protested against the Facebook argument that if US do not build the infastructure for this others will and then the US will not have juristiction.
For me this actually strengthen my own thinking that the future is bright for the companies that survive in this industry and not only that but it will be a betterment for all the people they serve.
Also I should add that Facebook where on record saying other wallets can be built to Libra. Given how Cardano will have interopability this could lead to an interesting space where a wallet app from Cardano network could connect with Libra network. That for me is a positive for Cardano (and other coins with interopability).
Of note, congress is being very cautious with Libra because they realize that their decision will set a precedent for other companies. If they allow Facebook to proceed with Libra (even with strict regulatory guidelines) this will immediately give a green light for others like Google, Amazon, etc… to issue their own cryptocurrency and circumvent traditional banks in e-commerce. This, I believe, is one of their biggest concerns.
Yeah, its interesting how quickly the us government responded to Facebook jumping into the game (quick isn’t usually in their wheelhouse). Ive been listening to Mnuchin and Powell all week and I think all of their concerns can be addressed. Regulation is certainly coming but its by no means the end of things. Unless you are using cryptocurrency for illegalities lol.
I agree this is a great Buying opportunity and Cardano is indeed not going anywhere!! Here to stay building a nice future for lots of people!
You know it’s something bad when Tether is taking a hit too
I’m not certain what everyone is hearing or what parts are being consumed for analysis. Take comments relating to crypto issuers being treated like banks or Libra being a security. These have HUGE implications many of which are not good. Sorry I don’t see it as all promising. Regulation could impose huge changes to the code base, buying and selling of crypto, and a whole slew of issues. After listening to the full hearing, I have a ton more questions and 10x more items to research. How are you folks drawing up such positive conclusions so fast?
They will require KYC and money laundry protection yes that was part of it. This for me is very much expected and is going to happen one way or the other. Yes because they faciliate a transfer between person a and b they will be treated with same type of compliance as banks (but are not banks as the guy from facebook stressed several times during the hearing). See my other thread for a potential way around this legaly.
What it will mean is higher barriers to entry because it costs money and legal resources to get compliance. ADA is in a good position here and has previously discussed a layered technology where you could have KYC details on top of a base layer if needed by a nation.
Also some states have made new legislation giving a new type of lisence for these crypto currency type of “banks” such as the state where IOHK currently reside. For me this is not suprising and was bound to happen. It is still a far superior technology than current banking tech even if it will require complience.
Yes they filling their pockets with cheap crypto.
As it went up so fast they where missing out.
If they miss the boat they bring it back
Michael94588 regulations for crypto security trading are already implemented which means you wont be able to cash out 100K on cioinbase with no questions asked from IRS. Problem is that those questions are often delayed by few years and contain interest an penalty. I would bet that all fiat exit points are monitored.
Those are not complete regulations as defined as scope by the Senate sub-committee. Those regulations are minuscule in comparison to what is being discussed in committee. And, I think most of are informed as to reporting requirements for taxation. And for any US based exchange, yes they report transactions to Uncle Sam and provide documentation for filings.
I think your analysis is well grounded. I feel that there will be more besides KYC alone though that is one large aspect. I’m thinking along the lines of consumer protection. FB won’t be able to just to table that and say it’s all on you. Then there is the issuing party, etc. it wont be easy that for sure and you’re right, high costs will impose a significant barrier.