The United States have been going through quite a bit and that is true. Cryptocurrencies are now an issue worth looking into and they are in all likelihood going to be part of the Presidential discourse in the 2020 elections.
If you are not sure what cryptocurrencies are, let us jog your memory a bit first. Think Bitcoin, which is one of the most notable examples of what the crypto craze can do to people. In 2017, the cryptocurrencies almost reached the eye-popping $20,000 inspiring many people to quite some lengths.
Many mortgaged their houses only to see the cryptocurrency collapse in 2018 and leave them all the poorer. Well, such have been the vicissitudes of crypto gambling. However, cryptocurrencies are not all about Bitcoin.
The Cryptocurrency Technology Is Bigger than Bitcoin
Cryptocurrencies are important believes Andrew Yang, one of the candidates for the US Presidency. There are many reasons why the US should be encouraged to develop the technology, study it and understand it, Mr. Yang believes.
Understanding how cryptocurrencies work is of the utmost importance and it definitely stands to reason to expect to see cryptocurrencies enter the mainstream. There seem to be no way around it, really.
Mr. Yang is a tech entrepreneur who is also among the 18 Democratic challengers to contest Donald Trump’s Presidency. He’s definitely one of the candidates that you will have to watch out for, as his charisma and knowledge of new technologies are often mesmerizing.
According to Mr. Yang, the technology that underpins Bitcoin, i.e. blockchain is worth a closer examination an it should be studied up close. It’s not a mere obsession, he believes.
Its indeed the future of all monetary and financial transactions and not embracing it now risks leaving the United States behind even behind China, which is experimenting with its own digital currency.
Understanding Cryptocurrency to Fix Its Problems
Understandably, Mr. Yang wants to focus the attention on cryptocurrencies so that he can help fight some of the most persisting issues around the segment – the cryptocurrency security vulnerability. There have been perfect examples of initial coin offering (ICO) scams and criminal payment uses.
Bitcoin has been found out to be one of the world’s criminal elite’s favorite ways of settling transactions. Whatever the circumstances, you needn’t have to worry if you are a crypto investor and Mr. Yang does somehow win the Presidency.
However, in the meanwhile, you will do well to be a little more cautious about your investment. Mr. Yang may be a presidential candidate, but he is also an outspoken expert in the world of digital finance. He has reiterated on multiple occasions that the US has not upheld its commitment to develop and enforce the proper digital currency laws, which leaves the country largely vulnerable:
“Uncertainty in what regulatory framework will develop is causing US investment in the area to lag behind the investment of other countries.”
Cryptocurrencies remain quite the complicated subject matter. Why? Well, because there are thousands of them these days and they are all worth a closer examination. However, not all of them can be understood so simply.
People continue to think that the rise and fall in the price of Bitcoin is where cryptocurrencies begin and start. This is not true at all. Estimated $100 million worth of cryptocurrencies are being used for gambling.
There have been nearly $1 billion worth of cryptocurrency stolen from various cryptocurrency storages around the world. Yet, Yang believes that blockchain has an immense potential and he is very much right.
However, to leverage this potential people will have to focus on enforcing laws that are designed to safeguard the industry and keep things vibrant.
Is Every Crypto Asset Treated as a Security?
Now, there is one issue that only few people have been addressing. Is cryptocurrency a security or is it rather a currency? The answer to this question is difficult, but it’s also fundamental to moving the debate onward.
Put in simple words – currencies would need to be taxed on the spot whereas securities are treated like company securities you invest in and seek the long-term profit. Of course, just like with a company security, you will have to keep in mind that there is always a risk.
However, the risk is present all over in the financial world. That’s why the majority of people are trying to invest in various assets, upstart businesses and more. Dividends do matter and it’s interesting to see people try even harder to diversify their portfolio.
It’s important to make sure you are prepared for the challenges of the world, and sometimes this means preparing for various activities. Here’s a quote from the CNET article which explains the difference between securities and currencies:
Today, the IRS treats cryptocurrency largely as a security. If you buy some cryptocurrency and it rises in value, you have to pay tax on any profits you make when you sell it. That tax treatment is at odds with the idea that cryptocurrency can function as money.
Some people are much more belligerent than Yang, though. People have been calling for tough taxation on cryptocurrencies earnings that will be taxed with a back date. That is definitely not the best-case scenario and many people are perfectly aware.
Looking at the Facts, Do Cryptocurrencies and Blockchain Have a Future?
It’s difficult to argue in the case of cryptocurrencies. After all, you need to address one specific issue in particular – it’s difficult to trust cryptocurrencies. People associate the digital gold with quite a few nefarious undertakings, which are quite understandable.
However, there are quite a few reasons why cryptocurrencies can and should be invested in. The thing is that cryptocurrencies allow you to move your money around quickly and safely. But they require a fair deal of conscientiousness to be used properly. Put simply, you will need to be honest about your money, its origin and more.
However, the majority of people will be looking for loopholes. So, how does Mr. Yang think that it is possible to establish a crypto industry that is driven by cryptocurrencies. Surprisingly, this is his entire presidential bit, too.
Mr. Yang Believes in the Future of Technology in the United States
Mr. Yang is a big fish in the world of technology. He is the son of an IBM researcher and he is passionate about technology. He teaches and preaches it. He is also a firm believe that shedding actual cash will have great effects on the economy, to say nothing of the environment of course.
There is a lot that can be said in favor of cryptocurrencies, but the main question that Mr. Yang will have to be addressing moving forward is to convince the people who re willing to back him that blockchain can be leveraged for the greater good with a great deal of success.
Blockchain is a more likely candidate though and Mr. Yang seems keen on arguing the case for the sake of blockchain. Blockchain can help optimize a lot of the industries today, providing them with great alternatives to existing problems.
The centralized ledgers quickly allow individuals to sort out through a multitude of tasks that used to be difficult. Blockchain will automate much of the future of finances, which will make it very easy for everyone to enjoy.
Can Yang Make a Successful Run on Technology Alone?
He is inspiring and he is savvy but are these qualities really enough to make sure that a presidential run is enough? In this age, Mr. Trump has set a precedent that stupidity and incompetence can get the job done.
However, it only gets it done if you have been given a very big head start. We live in a world that is politically hypocritical. People are ill-informed and disinformation is actually happening in real time. Mr Yang’s honest is inspiring, he intends to make sure that he is running on an honest bid.
Technology can do a lot to benefit the country. This is particularly so in the case of the United States which wants to remain the leading technological giant. The world is very dependant on technology and that’s why it’s important to put extra effort into maintaining technologies at the highest level possible.
Mr Yang’s bid is honest, but we are really wondering whether it will be successful in the long term.