The Case For Urgency In Cryptocurrency

Advocates must act quickly if they hope to have a voice in policy making

Years ago pundits and politicians in the US would make the bogus claim that alternative energy sources like wind and solar shouldn’t be pursued given their high costs. Of course, their lie of omission was the fact that these sources cost more, because they were at their early stages of development and if they were to receive government support it would likely increase demand, which economics prove would drive prices down. In fact, nuclear energy prices were only ever competitive due to decades of government subsidies. A 2009 Taxpayers for Common Sense study found that since 1948 more than $85 billion was spent on the nuclear industry. Unlike solar and wind energy, nuclear never really captured private investment and still remains reliant on the federal and state governments.

Why do industries like nuclear and coal still exist?

Simple: They have thousands, if not millions, who currently or at one point relied on these energy sources. For many this meant jobs that their parents or relatives held or jobs they may have held themselves. Communities that relied on nuclear or coal plants for jobs supported peripheral economic activity meaning that everyone from the local barber to the school principal provided products and services to people from the largest local employer.

It is this infrastructure and tradition that must be fostered and expanded to provide cryptocurrency supporters leverage against attacks from traditional banks and financial systems as well as others, like politicians, who stand to profit. And it needs to be done quickly!

Over the last few months leaders of major banks in the US, such as Bank of America and J.P. Morgan Chase, have publically announced or stated in their investor presentations warnings of cryptocurrencies being a major threat to them. They have also taken action by banning cryptocurrency purchases using their credit cards. Moreover, just a few weeks later the Securities Exchange Commission – perhaps at behest or at least encouraged by pressure from these banks – stepped up its pressure on the industry. By March, the SEC issued dozens of subpoenas of individuals and companies in cryptocurrency.

Now, to be fair, the cryptocurrency could use some regulation given the scams, hacks and unethical and illegal behavior of certain actors. Still, given the timing of the warnings from banks as well as criticisms from several of the wealthy and powerful from Warren Buffet to the Bank of England’s, Mark Carney, and Davos coupled with the clampdown just months later demonstrates the heavy influence of these institutions and individuals and the lack of an influence from the crypto world.

So, how does the crypto world fight back?

It must become adopted by enough people in which politicians risk alienating a significant portion of the population, businesses or campaign money in favor of the other. Simply put, if enough of the population supports and uses cryptocurrency a politician must have full confidence the other portion of the population is larger and more likely to vote or else risk losing support and elections.

To use another example, Americans were quite divided when in 2009 congress passed the Affordable Care Act, otherwise known as Obamacare. Politicians, especially Republicans, could rail against the policy knowing very well that enough donors, lobbyists and voters support that stance. Today, it’s a bit trickier. Just last year a “Health Tracking Poll from the Kaiser Family Foundation found that 48% of Americans view the law favorably…the highest level of favorability measured in more than 60 Kaiser Health Tracking Polls conducted since 2010.” Similar results were found in a Pew Research Center poll that also saw the ACA have its highest level of favorability at 54%. Once people realized they liked Obamacare politicians have had to form less firm stances, even conceding support for portions of the bill like covering pre-existing conditions.

Unfortunately, for cryptocurrency supporters the country is nowhere close to reaching similar adoption rates. In fact, a survey from Global Blockchain Business Council concluded that while 60% of Americans had heard of Bitcoin only 5% own the digital asset. The survey goes on to state that 21% of that number claim to be considering adding it to their portfolios, while 58% of holders are male and under 34 years of age. Furthermore, the country faces a potential educational and technological ceiling when it comes to adoption of cryptocurrencies.

Still, there appears to be hope in the demand not only for cryptocurrency, but products and services associated with the industry. Bitcoin ATMS are popping up across the country providing retail establishments opportunities to monetize otherwise dead areas in their stores. Computer manufacturers, like Samsung, are increasing production of graphic cards to assist with mining. In late December 2017, Forbes reported that “Bitcoin- and blockchain-related jobs on LinkedIn have risen roughly 306% in the 12 months ending mid-November.”

Still, the cryptocurrency community must increase its rate of expansion, especially in infrastructure, adoption rates and jobs – and not ridiculous ICOs endorsed by Steven Seagal - to protect itself against the institutions, especially in banking and government. It is only once the cryptocurrency world has been so ingrained into the American psyche and day-to-day life will cryptocurrency earn enough leverage to maintain its survival.