Biden’s war on cryptocurrency

After years of mismanaging money – and devaluing the dollar in record time over the past year alone – the Department of the Treasury has now stated that it plans to impose greater restrictions on crypto transactions. Chief among them is a requirement that any and all transactions valued at $10,000 be reported directly to everyone’s favorite agency, the Internal Revenue Service. This policy announcement comes paired with the Treasury’s apparent intent to curb the use of crypto in “criminal activities”. Those “criminal activities” presumably be people avoiding the loss of their buy-power by hedging against the flat-lining USD – over 35% of the total of which were printed in just the last 365 days.

But let’s stop for a moment and consider the circumstances here.

Without a doubt, recent events have caused a significant drop in the value of BTC, ETH, and, subsequently, many of the smaller currencies and altcoins. Flaky support from Telsa’s CEO, Elon Musk, and China’s CCP announcing restrictions on Crypto-trade being perhaps the two largest factors. As a result, the gold standard in crypto, Bitcoin, lost almost half of its total market cap from its record high of $1 trillion (with a T) in mid-March of this year. Panic-selling clearly viable in the data. And at a time when large firms are conveniently planning to implement crypt-trading programs. Many investors in the crypto market have, and rightly so, been suspecting shenanigans are afoot.

But there is also an entirely separate, less malevolent aspect to this supposed need to curb crypto. One that government officials display in spades on a daily basis. Ignorance.

Tracking crypto transactions can be as easy for the Treasury as spotting people in suitcases is for the TSA. Blockchains – the digital ledgers by which crypto transactions are cataloged – already track each and every purchase, transfer, and stake on their systems. The idea that crypto is somehow more stealthy than a group of mafiosos sliding each other cases of bills is objectively ludicrous. That being said, if someone did have need of a more covert coin, Monero would be the way to go.

Additionally, if the only transactions being monitored to any meaningful degree are those above $10,000 dollars, what’s stopping people from sending $5000’s worth in one transaction, and another $5000 in another? Transaction fees to the hosting site may apply, but if you have multiple Bitcoins, you’re probably not worried about those. The potential for circumvention in these policies is great, and the current favorability of government agencies is, currently, low. A combination of factors tells a tale of prolific laundering and under-reporting in the future.