In today’s Exponential Investor

  • Show me the proof! OK.
  • Jerome said “No.”
  • Visa’s smart contract

I’ve been involved in the crypto market for over a decade now. And for the last eight years, I’ve been writing to people like you about crypto to explain how it all works, what it means and what is the incredible opportunity that is available.

And, for eight years, I’ve had people call me crazy for it.

The tide seems to be turning and I think I’ve got most people in agreement now than before.

However, there is still quite a cohort of people who are still not quite sure what to make of it all. They aren’t quite yet convinced of the future of decentralised, distributed networks, cryptocurrency and the open-source future that awaits us.

Those seeds of doubt are easy to understand. In fact, I don’t blame anyone who still isn’t sure of the potential that this market, indeed the entire crypto revolution, can offer.

I understand that you need proof, that you need facts, and that you need real-world evidence. All this is something far bigger and greater than what you might hear from the Telegraph, Guardian, Sky News, BBC, Reuters or any other mainstream news outlet.

That’s why recently I put together a new briefing not on cryptocurrency, but on something that’s far greater. In fact, it’s an idea that has been coming for some time. An idea that will again make you rethink how we connect with each other in the world.

An idea, that could have an astronomical impact on the way we all live, and your financial future.

I want you to watch my briefing here, now.

If you’ve already seen it, watch it again. Let it really sink in as I show you how the world as we know it is undergoing one of the most radical changes in human history… and how you can potentially profit from it.

Now even after watching my briefing, you still may not be sure.

You still might think everything I write about with regards to decentralised networks, blockchain technology and cryptocurrency is hogwash and that it’s all going to end in one giant market crash.

I know some people will still doubt it because of a repeated question I’ve been getting for the last eight years. It’s a question that I’ve answered countless times, and that finally I might actually be able to put to bed…

But, but, governments!

For the last eight years there’s always one question I can never seem to shake about cryptocurrencies. The question (or sometimes statement) is this:

Governments will ban bitcoin and crypto as it’s a threat to their power.

As recently as last week I got this from a reader, who had the same concerns.

I believe the US government has plans to ban crypto as a currency, i.e. bitcoin etc. China has a current policy which outlaws cryptocurrency also? So the question is what is the future of cryptos.

This is the same question I’ve been fielding for eight years.

I even addressed this very point in my book, Crypto Revolution: Bitcoin, Cryptocurrency and the Future of Money.

In it I explained that while some governments may ban bitcoin, other governments in smaller countries (in places like Asia, Africa and South America) would look to embrace it as a way of advancing their citizens’ wealth and economic prosperity.

I started writing that book in 2016. We updated it in 2019. All of this was before the government of El Salvador (a small Central American country) decided to adopt bitcoin as a concrete measure to help its citizens.

I didn’t see the future. I just could see the power of crypto, and how the world works to figure out its direction.

And what I’ve been saying about governments banning bitcoin and crypto remains the same as what I was saying in 2013, 2017, 2019…

Banning crypto is not something you should worry about. It will not, cannot, kill bitcoin or the wider crypto ecosystem.

But China has banned it!

Here’s something I wrote in September 2017,

… in late 2013, China’s government decided that bitcoin was great and everyone in China could benefit from it. Then weeks later, it decided to ban all financial institutions from dealing in bitcoin. This was a tumultuous time for bitcoin, and its price jumped all over the place.

I wrote this as China was putting in place a ban on initial coin offerings (ICOs) in 2017. It was not the first or last time China tried to intervene in crypto. While its bans may stick in place, it doesn’t impact the future of crypto.

The word from the Fed

But the US is going to ban it!

Is it?

Not according to the chairman of the US Federal Reserve (the United States’ central bank, often simply nicknamed “the Fed”), Jerome Powell.

Speaking at the House Financial Services Committee meeting last week, Rep. Ted Budd (R-N.C.) asked Powell some questions regarding previous statements Powell had made about stablecoins and cryptocurrency:

Budd: I think I quote you correctly here, “You wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital US currency.”

Mr. Chairman as a matter of policy is it your intention to ban or limit the use of cryptocurrencies like we’re seeing in China?

Powell: No. And I immediately realised I’d misspoken…

Budd: No intention to ban, no intention to ban them?

Powell: No intention to ban them.

Now that’s not to say they’ll never ban them. But they might also ban gold, owning property, driving a petrol car, or leaving your house.

Those in power could ban loads of things. But at this stage, no, they’re not banning bitcoin or cryptocurrency.

Why?

It’s clear there’s an economic benefit for embracing such technology. A multi-trillion-dollar industry has sprung up in really the space of the last five years. That’s enough for power brokers of the traditional finance world to stand up and take notice.

And take notice they are indeed.

So, don’t worry about banning of crypto. In particular, don’t use that as an excuse to sit out what I consider to be the biggest wealth-creation event in the history of everything.

Powell has said they’re not going to ban it, what more proof do you need?

More?

OK.

Visa goes deeper down the rabbit hole

No doubt you’ve heard of Visa Inc (NYSE:V), the $488 billion payments giant.

Cuy Sheffield is the vice president and head of crypto at Visa Inc.

That’s right, Visa has a crypto division. Well last week, Sheffield tweeted about Visa’s first smart contract sample:

Source: Cuy Sheffield on Twitter

A smart contract is a type of application code, used to build out functions on a blockchain. More specifically in this case, it is on the Ethereum network (or a part of it).

This smart contract from Visa is currently on the Ropsten test network, a network that enables testing of applications and smart contracts to ultimately be deployed to the Ethereum mainnet (public blockchain).

This might not appear like much at first. But it’s a sign that giants of traditional finance see the potential of the crypto revolution.

Remember, Visa also recently bought a “CryptoPunk” non-fingible token (NFT) for $150,000. Sheffield said that this move was to “learn more about the growing NFT market.”

Visa is also currently working with Crypto.com, where Visa will look to settle transactions using USDC with Crypto.com and its partners.

USDC is a stablecoin issued by Centre, a joint development between Circle and Coinbase.

So when Powell says they’re not banning stablecoins, or cryptocurrencies, he’s saying they’re not going to get in the way of companies like Visa diving in deeper to the crypto revolution.

How’s that for proof?

Until next time…

Sam Volkering
Editor, Exponential Investor