You Can't Stop Crypto
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You Can't Stop Crypto
And the federal government knows it
This is a big week for Bitcoin, and by extension, for crypto.
The fact is—this revolution cannot be stopped, and the US government is now admitting it. On Wednesday, President Biden issued a major executive order regarding digital assets, something those who follow the sector had been waiting for most of the last year.
And that executive order seems to be extremely bullish on the future of cryptocurrency and other digital assets. First and foremost, it’s a major acknowledgment of the sector.
Back in 2009 at the dawn of Bitcoin, few could have imagined that it would rise to the level of prominence that it has, and do so in a less than fifteen years. Satoshi Nakamoto himself seemed a bit unsure his creation would have major impact, though he recommended obtaining some “just in case”.
Fast forward to now. Millions hold Bitcoin and cryptocurrency assets. It’s a major investment class for many people.
You can read President Biden’s entire executive order here.
Among other things, the order discusses implementing a framework to protect consumers, investors, and businesses as the investment class grows. It also asserts a desire by the administration to keep the United States at the forefront of digital asset growth, making it a “leader in crypto” as some might say. Further, the decree says the administration will explore the development and use of central bank digital currencies (CBDCs).
Personally, CBDCs make me nervous. Since they come from a centralized bank, they are the very opposite of the decentralization and freedom that is the promise of Bitcoin. I’m not overjoyed about the federal government’s increasing interest in them.
But overall, the market loved this announcement.
Bitcoin jumped more than 7% in price on the day, and other cryptocurrencies followed with strong rallies. Bit Mining Limited ($BTCM), one of the few mining companies listed on the NYSE, rose over 6% on the day. Coinbase ($COIN) popped too, with about a 10% jump.
Still, despite the bullish day of trading, Bitcoin retraced overnight, and the sector gave back some gains. Why? Well—have you seen the news lately? No one knows which end is up these days, and people are trading on short term information that is highly tied to emotion. There are no straight lines right now, and you can expect that for much of 2022.
Regardless, the future of crypto seems just a little bit brighter. It’s not going anywhere. Act accordingly.
Plus…
Ever considered using NFTs to expand your small business? Think about it…
We’re about to get another inflation report (at 8:30 EST). Expect it to be bad.
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.