There have been multiple times in crypto history that the community has found itself under attack by regulators. Each occurrence has led the industry to adapt and become more resilient. Understanding how to survive and avoid these issues should be a top priority for any serious crypto saver. Here are the best ways to protect your crypto savings during unsure regulatory times.
The Reality of the Economy
The crypto market has expanded considerably over the last 14 years. The market went from Bitcoin and a few clones to a massive industry that at one point peaked at over a trillion in capitalization. All of this growth occurred during times of unsure regulatory framework.
In most countries around the world, there are no regulations surrounding digital assets. As such, those who were ahead of the curve and got in early are now facing an unusual scenario. After years of success and savings, they now are forced to wonder if regulators, who still have trouble grasping the concept of decentralized finance, will make the right decisions regarding these game-changing assets.
Only a few countries globally have taken the necessary steps to prepare for the decentralization of the global economy. For example, El Salvador made Bitcoin a legal tender which has helped it to gain an edge in the market and international notoriety for its forward-looking stance. Countries like Japan have also been long-time champions in supporting the technology and not stifling innovation.
The market has reached a crucial point where it could hit another massive growth spurt and regulators are not going to miss this push. As such, you need to be prepared for whatever regulatory maneuvers to protect your wealth. Luckily, today’s savers have a plethora of options that previous generations lacked.
Bad Regulations Lead to Bad Results
One of the quickest ways to cut your country out of the blockchain race is to install bad regulations. Of course, from the perspective of central bankers, there are no good cryptocurrencies except for the ones they issue and control called CBDC (Central Bank Digital Currencies). The central bank understands that its power originates from its control over the population’s monetary supply and economic actions. As such, they are in no hurry to give up any control of the community.
Whenever you reach a point when regulations don’t keep up with technology, it becomes an issue. For one, it stifles innovation as people are unlikely to pour funding into R&D if they are unsure about the industry’s future. It also slows adoption for the same reason. People are unlikely to place their funding in an asset that can be made illegal for no other reason than a desire to retain control over the population.
Examples of Crypto Crackdowns
There have been multiple instances when regulators have taken a negative stance against cryptocurrencies and it has affected the market. The most notable instances occurred in 2017 during the Chinese crypto crackdown. The Chinese government, which is known for its tight restriction, decided that they were going to ban all crypto exchanges from operating in the country.
The Chinese crypto crackdown hit the market hard with most tokens losing over 30% before regaining their value months later. Even today, China is still very hard on digital currencies. They have even enacted several laws to make it very hard to mine cryptocurrencies or use them in any fashion.
The results of their actions were swiftly felt. Billions in funding fled the Chinese mainland for more open markets. The country also lost its edge in terms of blockchain advancement as it has since been surpassed by other nations in the region as the blockchain epicenter. In the short term, these actions helped the Chinese government keep its tight control, however, in the long run, it put the average Chinese citizen far behind in terms of blockchain education.
How Bad Regulations Affect Your Savings
Bad regulations can have a resounding effect on your ability to generate and save wealth. Bad monetary policies have already led to massive inflation due to overprinting and other factors. It’s difficult to save wealth when using fiat currency for two obvious reasons.
One, fiat currency decreases in value over time. This decline in value is obvious when examining the buying power of million dollars today versus in the 1960s. Fiat currency will always decline in value in the long run as it’s a debt-based system that requires more supply to function rather than value.
In the crypto market, bad regulations can have the same effect. If you live in a country where they have been critical of cryptocurrencies, it may be hard to trade or use your digital assets which decreases their value due to less usability. DeFi networks help to resolve this issue because they add usability to the equation and are open to a global community.
Usurping Technology
One of the most disturbing trends that continues to emerge globally is a regulatory bight back on crypto projects while at the same time pushing for more CBDCs. Central banks have a lot to gain from integrating CBDCs into the market. These digital assets provide banks with higher efficiency and real-time monitoring capabilities.
CBDCs enable banks to eliminate printing and delivery costs associated with money creation. Most people are unaware that it costs millions to even print the money they use. Digital currencies save banks money and enable them to monitor the effects of their monetary policies in real-time.
The downside to CBDCs all falls on the average person. These digital assets aren’t like Bitcoin in that they are not decentralized. The community will have no say in the CBDC’s evolution. CBDCs will give the bank complete control over your finances in real-time which raises many concerns for privacy advocates and those worried about the high potential for abuse.
Decentralized Networks Have Stood the Test of Time
When you look at early decentralized networks, you notice a pattern. Most decentralized networks have proven to be very difficult to shut down. There are still major streaming sites that operate with impunity because their decentralized structure makes them nothing more than code that connects people.
The concept of connecting people through direct transactions is what makes cryptocurrencies so powerful. Even Satoshi Nakamoto’s now famous Bitcoin white paper describes Bitcoin as a peer-to-peer electronic cash system. The peer-to-peer aspect means that there are no centralized groups to take the profits or censor your actions. It also means there is no central group for people to shut down in many instances.
Networks like Bitcoin and META 1 Coin that have strong followings could become impossible for regulators to completely shut down. However, it is worth mentioning that regulators have found other unique ways to make it difficult for crypto users. For example, they may not choose to regulate the platforms but rather impose steep taxes. This roundabout way of abusing the market is sneakier and prevents regulators from having to declare an asset illegal.
DeFi networks that operate as pure code are the perfect solution to this issue. These platforms don’t require any personal information to join or use. As such, they don’t have a personal date to share if asked. In this way, they help to protect your privacy from hackers or other groups that may want to know more about your actions.
Why You Should Consider Using a DeFi Platform Outside the Jurisdiction of Centralized Regulators
One option that some savers are now turning to is using DeFi networks that are incorporated outside the jurisdiction of centralized regulators. The central bankers and many governments work hand in hand when creating regulations. Sadly, this structure often means the average person’s needs are far from their goals.
Lately, more savers have turned towards networks like META 1 Coin. META 1 Coin is incorporated outside the jurisdiction of centralized regulators which means that it can offer features and services that other platforms can’t. The network’s developers purposely decided to incorporate it in this manner as a way to buffer against anti-crypto regulations in the future.
This structure makes sense as META 1 Coin is one of only a few safehaven tokens in operation today. Safehaven tokens are designed to store value. They will often combine aspects of stablecoins like reserves to help eliminate volatility. They are also known for incorporating community protections to defeat centralization.
META 1 Coin’s Founder Robert P Dunlap has spoken on how he envisioned META 1 Coin as a tool tohelp the average person escape the endless financial struggle that is the norm for most people today. He explained that one of the most important aspects of this approach is that the asset you use needs to be protected from outside influence. This is the mindset that helped him to develop the first and most popular safe haven token in the market today.
Creating an Open Economy for the Future
When you look at projects such as META 1 Coin, it becomes obvious that there is a drift in the market. On one hand you have the projects that support a free and open economy. These are decentralized networks that offer open enrollment and operate as pure code. They eliminate human intervention and make it possible for the community to benefit and offer financial services to others.
On the other hand, you have projects that are designed to strengthen the current centralized system. These networks were built to take the efficiency and security of networks like Bitcoin and integrate them into the outdated fiat systems in use today. They don’t champion the same causes such as transparency and equality. Instead, they were built to supplement the current system.
The wise saver will go with the networks that were built with their long-term benefit in mind. For the first time in financial history, technology has made it possible to have direct digital p2p commerce. The ramifications of this shift in structure mean that for the first time, people can be the bank. As such, more savers are taking this option due to its longevity and protection against bad monetary policies.
Safehaven Assets Provide Relief
When you look at the best options savers have today, Safehaven tokens rank high on the list. They provide stability and many even include protections against sudden market drops or whale manipulation. The META 1 Coin has a human-only requirement that helps to lower volatility due to eliminating malicious traders and bots.
Trading groups and hedge funds bring liquidity to projects but they also create major fluctuations in trading volume. This fluctuation can create problems for long-term savers. For example, trading bots can suddenly start a cascading event if they all start hitting their automatic sell points in succession.
META 1 Coin requires all users to prove they are human for multiple reasons. For one it ensures the community is run by individuals which was the overall goal of the project in the first place. It also prevents groups from coming in and usurping the network. Even regular users are limited to a $5M wallet per person to prevent centralization. All of these added steps have made META 1 Coin a highly decentralized and stable option for savers.
Savers Need Options
On top of the protections, META 1 Coin is only a small part of the METANOMICs DeFi ecosystem. This platform provides access to a host of powerful solutions to improve your savings and generate wealth using your current assets with minimal risk. There are features like the META EXCHANGE that provide high-performance trading to the market in a secure manner.
Don’t Let Bad Regulations Ruin Your Financial Future
If you want to learn to save successfully, you need to learn how to avoid the common pitfalls and mistakes that savers fall into. You’re not limited in your asset selection like previous generations. Today, savvy savers know that they can leverage multiple assets to get the best results and avoid serious issues such as unsure regulators and those seeking to make it difficult for the average person to succeed. Stick to the tips in this guide and you are going to get results you can count