In an atmosphere charged with nervous speculation, it might seem like the world of cryptocurrency is on the brink of disaster. The U.S. government's encroachment on Coinbase, Binance, and a host of others appears to be stirring the pot. Those claiming to be the sages of the cryptosphere are quick to argue that this represents a severe threat to the very existence of blockchain within the U.S. and beyond.
Well, I'm afraid I'll have to rain on their parade, for today is not the day for such doomsday prophecies.
Unpacking the Crypto Conversation
We need to infuse this discussion with a bit more subtlety and critical thought. All too often, I see people categorizing all blockchain assets into one indistinguishable mass. The reality, however, is that they are as diverse as they come.
Public vs. Private Blockchains
Critical to this understanding is the distinction between public blockchain cryptocurrencies and other digital assets. The two should not be confused. There exist numerous legitimate and lawful platforms operating on private blockchains, generating immense value for their users.
Private Blockchain Innovations
Private blockchains and digital assets are at the forefront of innovation. CBDCs (Central Bank Digital Currencies), bank-issued stable-coins, swaps, and a myriad of smart contracts move various types of digital assets within private networks. In parallel with public blockchain spaces, these platforms are exploring tokenization of real-world assets (RWAs). Yet, these private entities do not fall prey to the same hazards or slapdash strategies seen in the likes of FTX, Binance, and others.
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Beyond U.S. Borders
The world extends beyond the boundaries of the United States, you know. As the clichéd trope of the once-popular bully losing his power to the underdogs in a high school movie, the U.S. is experiencing a shift towards a multipolar world. Many jurisdictions, spanning Asia, South America, and the Middle East, are far more welcoming. Digital assets and public blockchain projects have the liberty to migrate to more favorable landscapes.
They can, ironically, realize the quintessential 'American Dream' far more abundantly beyond the confines of the United States.
Profit or Principle?
The big question is: do you want to be right, or do you want to be profitable? The crypto maximalists tend to expend quite a bit of energy lamenting about how the game is rigged, or how the mathematics of crypto is the ultimate solution. But why remain and partake in a game you believe to be unfair? Why not relocate your assets, resources, and talent where they would be warmly received? Now, doesn't that sound appealing?
Facing Reality with Courage
This requires genuine bravery. A clear-eyed, realistic view of the current situation is necessary, not a romanticized or idealized version of it. Real entrepreneurs, real investors prioritize profits over being proven correct. The empty grandstanding on social media platforms like Twitter and LinkedIn is just that, empty.
I pose a simple question: "Do you want to make money, or do you want to be right?"
Conclusion: Betting on Mobility
Smart money and entrepreneurs will place their bets on the power of mobility.