Governments and cryptos are considered to be on the opposite ends of the financial spectrum. While governmental workflows are largely centralized with trusted third-parties overlooking various operations, the world of cryptos presents forward the idea of decentralization where the users of a network are in control themselves with no intervention needed from a third party.
As bitcoin is getting more and more attention from the financial world, institutions and organizations are demanding regulations to put in place when it comes to the world of cryptos. Since the bitcoin and crypto arena is rife with illegal and negative activities, regulations might help put a general layer of trust. But then again, with governmental intervention, the idea of decentralization seems to be violated. Regarding this matter, Everett Millman of Gainesville Coins recently shared his views with BlockPublisher.
- Will bitcoin replace fiat or act as a reserve currency in the future?
Everett: “Yes, with the caveat that in the future is a very vague time horizon. Cryptocurrencies (or something like them) will replace our existing government-issued currencies someday — but that may not be for 50 or 100 years. It’s certainly not going to happen anytime in the near-term.”
- Is it the digital gold?
Everett: “Bitcoin is digital gold insofar as it is considered the top cryptocurrency. It’s the gold standard for the crypto sector. However, that dominance is subject to change and is highly unlikely to be as durable over time as the value of gold.”
- Should this market be regulated?
Everett: “There needs to be some regulation of cryptos, but concepts like regulation, centralization, and bureaucracy are all anathema to the principles that underlie most cryptocurrencies (e.g. decentralization, freedom of exchange).”
- What can governments do to curb out the negative elements linked with bitcoin?
Everett: “Governments really can’t do much to mitigate the negative elements of Bitcoin. The whole idea behind BTC in the first place is to be free from government intervention. The chances are good that a government solution for cryptocurrencies would be self-defeating, or defeat the original purpose of cryptos in the process. Moreover, governments have had a hard enough time taking advantage of the positive elements of crypto, such as failed efforts in Venezuela.”
A very interesting conflict is going on right now. While some are demanding regulation in the crypto space so that more people can trust it and it can grow bigger, others are of the view that it should set free by the governments owing to its idea of decentralization. Let’s see which side of the swing rises upward and which side comes down as we move forward into 2019.
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