The Misguided US Government War on Crypto and Why Crypto Will Win

President Biden is stepping up the attack on Bitcoin and crypto. Combined with banking failures and inflation increases, the crypto asset class has lost 14% in value over the past week.

“They are coming for us” by Dall-E.

President Biden’s newest budget proposal includes a 30% tax on electricity used for mining Bitcoin. The tax even applies to miners using renewable energy. Effectively, Biden is telling the miners, “Get the hell out of here!” He also wants to eliminate wash sales that allow US crypto investors to harvest tax losses.

The US government attack is relentless. So far, we have a lawsuit against Ripple, an outright attack on Binance, a staking fine that will cripple major exchange Kraken, and an increased tax attack against the crypto industry and investors.

However, there is quite a bit more to this attack. The government constantly spreads fear about crypto exchanges, which they refuse to regulate. In addition, the government is threatening banks that want to expand their crypto services and are throwing around the idea that all cryptos not named Bitcoin are securities.

In response to these attacks, coupled with a Fed hellbent on breaking the economy, Bitcoin and the crypto asset class are succumbing to negativity and fear. Of course, it doesn’t help that crypto’s friendliest bank, Silvergate, is shutting down and further constraining the rails between traditional finance and decentralized finance.

While all of this pressure from the government may make many investors question having their portfolio in crypto, I am taking the opposite stance. The government is throwing everything it can at the industry and isn’t stopping anybody. Innovation is happening.

Meanwhile, the fiat monetary system is approaching its breaking point. The US is raising its debt ceiling for nearly the one-hundredth time, and prices aren’t going down even though interest rates are highs not seen in over a decade.

Let me explain why the government won’t win this fight and is blowing an enormous opportunity to continue being the world’s economic leader.