And Bitcoin commoditizes governance: It takes governance’s corrupting power and turns it into a “toothless commodity,” which anyone with an internet connection can supply.
This week, the cryptocurrency markets displayed a more sophisticated understanding of regulatory and technology risk: shrugging off mining thunder from Washington and Beijing, and staggering at the news that U.S.
Hours after disclosing it had recovered bitcoin sent to the Colonial Pipeline attackers, the FBI was named in a Europol press release describing a multinational operation in which law enforcement agencies stood up an encrypted-messaging service and marketed it to criminals as a Trojan horse.
The increasingly crypto-curious world has a thing or two to learn about how this works.
If bitcoin’s price rises, more miners will turn on, motivated by rewards and providing security commensurate with the value of the network.
There is also risk of slow progress on crypto-friendly regulation, such as banking oversight and a bitcoin ETF approval.
The market seems to be gaining a better understanding of that distinction – between technology risk and regulatory risk in cryptocurrencies.
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