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Crypto Research

Crypto regulations are coming

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It’s pretty much the modern day equivalent of the Great Glass Ceiling: a looming regulatory wall that will keep crypto safe from hackers and other outside threats. But as is the case with any regulatory overhaul, there are tweaks and new rules to be added before we get to our untapped potential, especially after the FTX collapse. That being said, one thing is for certain: regulatory changes won’t completely eliminate cryptocurrency. And while they may make it less accessible to an untrained eye, they may also ease the way for more institutional investors and developers alike. We’ll discuss what those implications are below, but first let’s take a look at some of the most recent developments around cryptocurrency regulation in the U.S. We’ll also highlight where you can help fight back against these new regulations by developing your own — or already have one on hand.

What is Crypto Regulation in the U.S.?

The National Security and Immunities Act of 1952 started the modern era of cryptocurrency regulation in the U.S., when it was passed alongside the National Defense Authorization Act. The act established a formal regulatory framework for digital assets and Issuer Protection Laws, which established standards for who can own and operate digital assets and what those assets can do. It’s important to keep in mind that the National Security and Immuneities Act was passed during a period when crypto wasn’t yet a widely recognized form of money. Therefore, the act included only limited regulations on use and ownership of virtual currencies. It was the first major international regulatory change that focused on cryptocurrency and it’s immediate successors.

Crypto regulations in the U.S?

The following are the major regulations and uses of crypto in the U.S. today: 

– Investment. Any investment in virtual currencies requires an investor to obtain legal permission from the government before implementing any significant amount of capital. 

– Investment in banks and financial institutions. 

– Investment in financial products. 

– Investment in the savings and investment systems of other countries. – Investment in exchange rate systems. 

– Investment in know-your-customer (KYC) programs. 

– Investment in KnowYourExternalities (KYC-based) programs. 

– Investment in Blockchain technology. 

– Investment in Blockchain and software security.

But it does not prevent the fall of FTX US.

What Happens when a Regulatory Tackles Cryptocurrency?

Cryptocurrency was first developed in 2004 as an alternative payment system to the traditional financial system. It is a decentralized, digital money that is susceptible to peer-to-peer and other computer-to-computer transactions. Currently, the U.S. Securities and Exchange Commission (SEC) regulates cryptocurrencies as an investment and doesn’t regulate the market price or value of cryptocurrencies as an investment. There is main challenges with the current regulatory environment that requires crypto to become an investment asset under compliance with the law. There is a clear opportunity in the blockchain and cryptocurrency space. The blockchain is a decentralized computer network that is decentralized from centralized computers. It’s not controlled by any central authority and provides transparency and trustworthy data. The blockchain is also digital and offers incredible scalability, making it ideal for growing industries such as healthcare, education, and government.But the SEC also has an ongoing fraud investigation into the apparent misappropriation of funds. This is the first time that such a scandal has been detailed in full in the same report. The SEC also has a plan to implement oversight of blockchain and cryptocurrency companies. The agency has committed to creating a “comprehensive, uniform, and integrated blockchain and cryptocurrency oversight program.” But how about the CEX regulations that possibly will prevent another collapse in FTX is coming to reveal in years.

Bottom line

The U.S. Securities and Exchange Commission (SEC) has been regulating cryptocurrencies as an investment since December of last year and has committed to implementing updates to the rules for the next few years. The agency will also conduct market analysis of recent prices to identify emerging trends and provide updates as warranted. What’s important to remember is that the regulatory landscape in the U.S. is slowly moving in the right direction and cryptocurrency is only the latest regulatory change to consider. As more industries start to adopt blockchain and cryptocurrencies as an alternative payment system, the landscape will become more flexible and welcoming to new players. With that, there is a strong potential for the industry to grow in the future. But how about decentralization that people focus to work and develop on?! Will FTX collapse drag entire industry down into heavy regulations is a question that is going to reveal soon.

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Crypto Research

Say no to FOMO

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Do not FOMO into crypto. This is the rule that prevents you from becoming a bag holder.

ChatGPT suggested that FOMO is:

FOMO stands for “Fear Of Missing Out.” It refers to the social anxiety or feeling of regret over the potential missed opportunities, experiences or social events that others are enjoying or participating in.

You will see every social media platform where people shilled their crypto portfolios and told you how you missed the train.

This is not true.

Remember, there is never missing out of the train in the crypto because it is inefficient to sustain at the peak level for a longer time.

Rather, it will go down every time without problems.

You should do your research carefully and exam around the market sentiment.

When everyone says you are missing out, it is a time that the market is about its peak and hype.

You need to stay away from the social media and observe to see how the market performs. 

When everyone says the crypto is not more extended work, you should prepare to see how it may prepare itself to come back.

It is not always the case, but it usually works this way.

Do not influence by the social media shiller but trust your research!

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Crypto Research

Crypto is a good investment or not

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Many people buy crypto to believe it is a great investment. However, it may not be the case.

I asked ChatGPT about the crypto investment and here it is:

Investing in cryptocurrency can be a good opportunity, but it also comes with high risk and volatility. It is important to thoroughly research and understand the cryptocurrency market before investing. Additionally, it is recommended to diversify your investment portfolio and not to invest more than you can afford to lose.

Here are some misconceptions:

First, crypto is not a traditional investment that requires a conventional way to invest. Instead, it is a catch-or-miss investment that you really need to time the market to make profits.

Second, you do not need to hold for too long if you need money quickly. Crypto tends to perform badly long term than average assets did.

Third, high risk only sometimes has high rewards. Many crypto with high risks may not ever provide high returns eventually and many go to zero instead.

Last, do not go FOMO because you are likely to become a bagholder.

There is not missing out and it is too late in the crypto. Rather, you should always keep an eye on the market.

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Crypto Research

Mother of all bubble

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We are heading into a bubble economy and there is one that is about to pop.

ChatGPT suggests that a financial bubble is:

A financial bubble is a situation in which the price of an asset, such as a stock or a commodity, becomes artificially inflated due to excessive speculation and investment. This can lead to a situation where the market becomes overvalued and eventually collapses, resulting in significant losses for investors. Bubbles can occur in a variety of different markets and can be caused by a number of factors, including low interest rates, economic growth, and investor sentiment.

Let’s take Tesla as an example.

Tesla CEO is Elon Musk, who purchased Twitter last year and believed the company can help Tesla to make more profits.

Does it? Or he tried to inflate Tesla instead?

If you go to Twitter, there is less opposition than a supporting voice.

Elon Musk sells Tesla cars and Tesla stocks.

People purchase cars to help pump the stock price and when stock price goes up, people want a new Tesla.

Despite all the bad reviews about the car and its questionable autopilot feature, Tesla cars sold quickly and stock goes up no question.

Is this a Ponzi scheme?

Similarly, cryptocurrency is also highly speculative.

It goes up a time to time, but people buy the narrative without further investigating how useful the crypto really is.

What if people stop buying the crypto, will that still go up?

What if the economy is so bad and the interest rate is high that people have less money to buy more crypto?

We will see how it goes.

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