The crypto space has been doing rather poorly as of late. Bitcoin, for example, has lost more than 70 percent of its value and is trading in the low $20,000 range after hitting a new all-time high of roughly $68,000 per unit in the final months of 2021. Many other digital currencies are following suit, and it looks like the industry has lost trillions – not billions or millions – in value.
Crypto Startups Remain Popular
Despite all this, crypto startups keep popping up everywhere, and they are still attracting investors as though nothing has changed. It appears that the digital asset arena has become far more mainstream and legitimate in recent years, and while volatility is higher than ever before and prices continue to sink into oblivion, many traders and investors are finding new ways to make crypto part of their portfolios and investing in blockchain-related companies may be a plausible way to do that.
Andrew Howard – chief business development officer at bitcoin brokerage firm Bitcoin Reserve – claimed in a recent interview that bitcoin is far more “honest” than other monetary systems. Therefore, everyone keeps flocking to it no matter how much value it has lost. He says it is the only asset out there that can be fully trusted. He stated:
Bitcoin is honest money. It is the most moral monetary system we have… The more users a network has, the more valuable it is, and there’s a clear parallel between bitcoin, the monetary protocol, and TCP/IP, the internet protocol. TCP/IP was created in the 70s, battled in the ‘protocol wars’ during the 80s, and clearly had the winning network effect in the 90s, rendering its competitors obsolete. The Internet community was nimble – able to develop in months what took the Open-Source Initiative years [to do], but it scared off some potential adopters because nobody seemed ‘in charge.’ Even more so, absolutely nobody [oversees] bitcoin. Bitcoin is the TCP/IP of money.
People Like the Independence
He says one of the big things that attracts people to crypto is it provides monetary autonomy and independence. There are no prying eyes or third parties regulating what you can and cannot do. There is nobody there to deny you service. All you need is a valid internet connection and a digital wallet and voila! You can begin trading with anyone in the world. He says this is very refreshing, and people like the freedom that comes with the digital currency arena.
As a result, crypto regulation – which has been a rather hot topic as of late – comes in the form of a double-edged sword. While regulation can ultimately ensure protections for individual traders, the entire space has been built on the idea of monetary independence, and if regulation becomes too big, this independence will likely diminish in some way.