What’s happening to crypto ?

Note : This writing is for informational reading only and is not meant for investment advice.

“Any Asset that is against the constituents of the state (the country’s currency in this case) is bound to become regulated over time”. In simple words, the idea of a state looses meaning if it looses the ability to control or regulate an asset.

We do not live in a world where there are no boundaries, there are lines drawn between countries , difference cultures , different ethnic preferences etc. Although the advent of internet has over time made the world a smaller place, the differences in boundaries from the idea of a “State” still remains. The introduction of crypto to the world made a dent in that Idea where the state lost its relevance in controlling the flow of money.

Now the idea that flow of money should be in the hands of people sounds exciting but it has its own consequences. Humanity has been shrouded with greed and people who stand to benefit first are the people who have unregulated businesses like drugs, hawala, the cartels and the terrorists.

When it comes to the field of investing, crypto as assets are a confused asset , sometimes it is seen as a inflation hedge i.e replacement of gold , which means that when the overall economy is in doldrums assets like gold and crypto should rally. But that was not the case, when equities rallied crypto also rallied. Similarly there were situations when equities rallied and crypto mirrored gold a few times. Hence it becomes difficult to put a correlation to it. However as the asset matures maybe we will see some kind of trend over time, maybe it is to do with the usability of crypto and only time will help us understand it better.

An asset matures over time when regulation is applied to it, however the idea of crypto thriving where there is no regulation makes it a difficult asset to ascertain if we should invest.

Maybe there is a dystopian future where boundaries are not enforced and even regulations are ‘for’ decreasing boundaries between lines, until then i’d postpone investing into crypto as an asset.