#AskLeo - Would crypto survive without the USA? What would happen?
Hi,
for the #AskLeo of today, I want to ask you if crypto can survive without the USA? All the world knows, that there is a lot of money coming into crypto from the USA, most of it I would say, and we all are aware of the self-centred belief system the USA has.
But, as there is always a but, there is a regulatory system in the USA, that aims at crypto, as it can't control it. We will probably see in the next future, some more regulations coming in, which are not crypto-friendly, or constructive coming from the USA. Maybe a whole blocking on crypto, which can block the most major investor in the field, the USA.
My take on this is that there is too much money involved and too many USA citizens involved. I'm not saying Americans, as people from Honduras or, Chile are as same as Americans as the ones from the USA.
There are 401k funds, which are the pension funds for the USA, which are heavily invested in crypto, especially into BTC. As the USA is facing some big social issues, having the next generation run into elderly poverty, would be a financial fiasco for the government.
Also, there are funds that have been approved by the financial institutions, that are dealing with crypto. If these funds keep the guides and laws, there shall be no issue with crypto, maybe more regulations on individuals, to get more taxes on them, as governments love money from taxes.
The USA has local laws, for each state. States as Nevada, Montana, and some others are definitely more crypto-friendly with a more socialist approach.
In the worst case, if crypto is banned in the USA by the federal government, we will probably face a massive crypto winter, as most people will sell fast. That would bring a lot of liquidity and a big price drop in most assets. Of course, we will have partisans that will use VPNs and will do business as usual.
The funds that administer the crypto assets, will most sure the government, as it is a big loss. Also, the pension system will be affected and loads of trillions of USD need to be printed to cover the social problems coming with it.
For the rest of the world, this can be a warning shot, but there will countries like Switzerland, will keep on building the tech and ecosystems around, of course, with regulations.
There are countries like El-Salvador who will profit from it, as more crypto will be coming towards them, shipped by the ones working in the USA.
On the long run, crypto will prevail, and maybe the USA will need to pull back, when the first funds win the lawsuit that caused them the big loses.
As I always say, these are my views, and I'm no financial advisors and have not the qualification to be so. I write this, like the micro oven manufactures write not to put living animals and babies in the oven, just to underline, what shall be common sense.
How do you see it? How would be the crypto market affected on the short and long run?
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