Misplayed Game: How Governments Have Failed To Regulate Bitcoin

Misplayed Game: How Governments Have Failed To Regulate Bitcoin

In March of 2013, Bitcoin entered into a third phase of its evolution. Whereas the first two represent creation (2009) and popular acceptance, the third began as FinCen published a guide on how virtual currencies such as Bitcoin would be managed by the US government (and thus, by extension, all governments under the thumb of anglo-americanism worldwide).  In the wake, government agencies began cracking down on exchanges and wallets such as Mt. Gox and Dwolla.

What this movement meant was that phase 3 would merely be a stepping stone along Bitcoin’s development.  This interim phase will see many of the main Bitcoin exchanges come under pressure from global authorities. The following phase? Well, that will see larger players entering into the Bitcoin space, in particular companies with money transmission licenses.

And thus is how Bitcoin will be partially compromised. It cannot exist as a strictly free market thing, for there is no such thing as a free market anywhere on the globe. Instead, transnational corporations will enter into the ecosystem of Bitcoin and drown out all smaller players with help of overreaching government regulation. But, this is merely phase 3.

Some phase in the future, as the remaining 11 million bitcoins are released into the wild, could give rise to something quite different: that is, a Bitcoin ecosystem of overwhelming wealth. Should the mining  aspect of Bitcoin not similarly get taken over by industrial titans, the Bitcoin usership could turn so diverse that once “small players” can take on in a meaningful way the already entrenched interests.

By showing their cards so early, governments have given bitcoin enthusiasts an idea of the future. Overreaching regulation has given the impression that governments are worried about Bitcoin. The state-enterprise complex will do its best to control the Bitcoin ecosystem. But, with 11 million coins outstanding, the wild ride of spontaneous order will give the general usership a chance to win big.