The world of crypto finance is rapidly evolving and what worked yesterday is outdated tomorrow. Everything is changing so fast that it is hard to tell what is right for the crypto market and what is not. Not only does the market surges and drops a hundred times per day but the investors change by the hour. We see millions and billions raised through initial coin offerings, we see projects fading away, we see institutional investors stepping in, and even the authorities have their eyes set on the crypto world these days.
For years Bitcoin remained on the sidelines. Only a few hundred tech-savvies knew what it is and how it works. Until last year, cryptocurrencies were only for the geeks. However, their prices started to move upwards and this drew the attention of many people how wouldn’t have otherwise been involved in technology or stock trading. The more average Joes joined the party, the higher the prices went. Though this unexpected growth was crucial to the technological development of blockchains we refrain to say it necessarily did well to the sector. Mainly because many people decided to run fake projects just to squeeze some cash from their naïve supporters. Yes, exit-scams are perhaps the single most important thing that made the authorities crack on cryptocurrency projects.
Point of no return
Let’s face it, the authorities are going to regulate the sector sooner or later. The question is, how do we make the most of it? Bitcoin was originally created with noble intentions such as freedom and independence. However, thanks to dark web vendors, cybercriminals, hackers, exit-scamsters, and money launderers Bitcoin and especially privacy-oriented tokens like Monero, Zcash, and DASH are mainly associated with illicit activities.
How do we clear the image of cryptocurrencies then? Well, one way is to try to educate people who are new to them. Check our survival guide, for real-life examples. The other way is to regulate the space. By designing proper regulatory frameworks the authorities can cut down fake projects without completely destroying the decentralized nature of cryptocurrencies.
Think about it for a second, we can stop hacking or at least diminish it if we all migrate to decentralized exchanges. Let’s assume both blockchain experts and lawyers participated in their creation. What if smart contracts have legal bindings as well? I am pretty sure, if someone tries to deceive a smart contract it can automatically reveal his identity. In such case, the officials will know who tried to cheat. Sounds great, doesn’t it? After all, we all think hackers deserve prosecution.
What about the regulators?
Don’t get us wrong, we are in no way supporting centralization. However, the crypto world needs regulation either from the authorities or from its strong community. Otherwise, it will bury itself. Come on, Bitcoin wasn’t meant to launder money or to finance criminal organizations. It was meant to serve the ordinary men. We should stick to that when designing regulatory frameworks. No, it wasn’t meant to make you quick-rich either, it’s not about money all the time. Think about independence and proper governance instead, think about mainstream adoption and real-life use cases.
Of course, those who will be in charge of the changes should be under the strict surveillance of the community. Did you know that Zcash, which usually recognizes itself as a privacy-oriented token is not prioritizing ASIC resistance anymore? Why do you think its governance panel voted against ASIC resistance? We dare to say it is because many members of the crypto community had forgotten why cryptocurrencies emerged in the first place.