• Crypto is coming under increasing attack from regulators and politicians.
• Speculative investment can be a valid part of cryptocurrency markets.
• There is value in layer 1 protocols, even if it is not fully understood.
Crypto Under Attack by Regulators
The first quarter of 2023 was a great time for cryptocurrency prices, but a terrible time for sentiment about the industry. Increasingly, crypto is coming under attack from regulators and politicians, including Sen. Elizabeth Warren (D-Mass.), who recently called for an “anti-crypto army”. In response to this crackdown, CoinDesk has posted editorials on the federal government’s actions and Biden administration’s politicizing of the sector.
Speculative Investment in Crypto
What drew me into crypto initially was speculative interest – something that many view as a dirty word. Deploying capital with the expectation that it will decrease in value is often frowned upon, however there are other ways to look at speculation which can be valid parts of any market.
Value in Layer 1 Protocols
There is clearly value in crypto, especially layer 1 protocols – though this may not be understood by those critical of the asset class. It’s important to recognize that bad actors should be targeted instead of attacking whole asset classes or technologies.
How Do We Move Forward?
In order for crypto to move forward positively we need more education around these protocols and potential use cases for their underlying technology. By understanding how they work and what their applications could be in the future we can start to move away from speculative investment and towards an understanding of why these asset classes have become so popular over recent years.
Conclusion
Ultimately, it’s important for investors to understand layer 1 protocols if they want to make informed decisions when investing in crypto assets – particularly as regulatory challenges continue to present themselves in both traditional finance and digital currencies alike.