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Land Of The FUD: Why America Is Wrong on Crypto

August 11, 2018
Devin Milford


Land Of The FUD: Why America Is Wrong on Crypto

Americans are, by and large, a trusting people.

American culture is one of trust. Just look at a syndicated police drama. I’ll bet that comes from America. Imagine that, the authorities as our friend!

A big reason for that is the legal system, the rule of law, the protections within its Constitution and decentralized government structure (Americans call that “federalism” and it allows for a national structure but also separate, sovereign “state” structures which are supposed to handle things of a more purely local nature). Indeed, the American legal system may be the envy of the world. If you have a lot of assets, you usually want to go to a “safe” country and deposit them in that nation where you know what the laws are. In America the government is very stable (no risk of coups), so you pretty much know what the laws will be in the future, and the legal system gives you the right and sometimes many, many opportunities “to be heard” (American phrase: “due process”) and there are laws and legal protections against things like government confiscation, again, without due process and various other procedural safeguards.

But despite all this, America is wrong when it comes to crypto.

It’s not all bad. A lot of crypto innovation comes from the United States, owing to its relatively favorable laws (its draconian regulations and taxes are a separate issue) towards innovators and entrepreneurs and its educational and scientific resources.

But the United States is a trusting culture and that’s where Americans don’t get the value of, and the need for, crypto.

Americans trust their stable currency. Their annual inflation rate is just a few percent per year and it’s been that way for decades. But most world currencies are volatile. They are not stores of value. In most of the world, crypto has that appeal.

Most of the world population will flock to crypto once exposed to it, once it becomes even more accessible, and once the price of computing falls so that smart devices can penetrate even the most rudimentary markets.

Worst of all, Americans dominate the world financial news (think CNN, CNBC, Bloomberg). That means that
the appeal for crypto is not felt by the reporters and commentators
the public interest in crypto is not realized, or ignored the news organizations depend on legacy banks for advertising, for news tips, and as landing spots for the next jobs for those same reporters. The news media is hardly objective anywhere, especially when it is “free.” At least a government run news source has a particular perspective that the audience knows when it lands on the site.

So, when you see and hear bad news about crypto, how “crypto is going to zero despite all major coins being up over their value one year ago” you should know all the mistakes in that worldview and assess the article accordingly.

FUDNews, anyone?