Last year, the financial industry damage suffered by crypto investors was huge. Not only from FTX International, but also from other enterprises: Three Arrow Capital, Celsius, Genesis, Gemini, Voyager Digital and BlockFi.

The Bitcoin market has still not been repaired from the continuous bankruptcy of cryptocurrency, although it has avoided some losses caused by the failure of FTX. According to encryption interchange,BTC has been greatly discounted throughout the year. Each new bankruptcy article title has caused the Bitcoin market to fall.

It's hard to say that the recent rise of Bitcoin to $21K is an increase or a trap in January's bull market. In addition, the bankruptcy case of the previous year was repeated in the bankruptcy and criminal courts.

Bankruptcy lawyers said on Wednesday that FTX had seen US $5 billion in quick assets. In the process of being detained with a ransom of US $250 million, Rob Bankman Fried first wrote an article on Substack on January 12. She wrote in an article entitled "Brief introduction to FTX before death":

"In November 2022, an extreme, rapid and purposeful crash triggered by BinanceCEO led to Alameda's bankruptcy."

It must be noted that SBF's view of "after death" is not that FTX has no customers' money. The CEO of the competitor told the masses that FTX did not have customers' money.

Sam Bankman Fried is not an uncontrolled jeans with advanced data. The quantum chain is. In fact, SBF is a big ideological donor and has established a good relationship with American regulatory organizations.

In addition, TradFi's attitude towards the financial industry, which confused cryptocurrency last year, is precisely the main reason why we should cryptocurrency. BTC should be able to solve these problems. The same is true for other open source systems.

How to crack the buzzing around cryptocurrency by TradFi Bros on Wall Street in the United States

At the end of this year, Bloomberg Businessweek released the Crypto Story, the sequel to its October 2022 novel speech

The following article is about the small accident of Sam Bankman Fried and Alameda FTX. This article is entitled "How not to play games". The article skillfully describes the issue of importing TradFi into cryptocurrency:

"You will also find that you have created a fashionable operation interface and a fast and smart business optimization algorithm. Because these are interesting and profitable things, you may ignore the accounting department because this is particularly boring. You may know how to attract customers' money, use your fashionable page to follow your happiness, but you are also not good at tracking customers." Use your lack of accounting and your happiness to make money. "

From the source, cryptocurrency is a meaningless, money-based and anti-American Wall Street field. But the friends of TradFi turned it into the evil twin brother of Wall Street in the United States. They created a terrible parallel processing encryption mobile game of financial fraud and financial accounting:

"Considering that cryptocurrency has a shortcoming but an effective method is that it allows the establishment of a toy financial system. There is a conventional financial system, a set of abstractions and processes... then cryptocurrency has emerged a set of new financial derivatives."

But Matt Levine, a prominent financial freelance writer, said that encryption mustof large numberThe mistake of this regulation is to keep the influence of the government out of the door. Because this story does not involve the harm of government regulation to the bankruptcy crisis of the past year.

According to "How not to play games", the government did not participate in this mobile game. But not so. The article itself provides some direct evidence to resist this kind of qualitative analysis.

After all, in this book, the author talks about how "crypto" companies can resell the worst personal behavior of Wall Street in the United States into crypto products. This embarrassing operation concept does not come from the vacuum pump of Wall Street in the United States. They all happen under the approval of the regulatory authority and even the application and design:

"This game is played by young people from the traditional financial world. They come from financial institutions, financial derivatives and quantitative analysis proprietary trading enterprises. They have loved the financial industry and want to play a version number of small toys that they can portray at will."

Will the interface be clearer? Crypto's foam plastics are not driven by the general mining operation of ASIC drilling machines. It is driven by such American Wall Street entrants, who add to the reckless financial culture of American Wall Street with strict supervision.

What should investors expect from all the practical interference of the government in the encryption market?

US TradFi policies and regulations seriously damage investors' assets

In 1999 and 2000, it was the US financial regulatory regulations that caused the economic foam. The regulatory organization allows you to buy and sell online stocks with a very large total market value in order to get the first page of honor.

Supporters of the regulatory login password are expected to see that 91% of altcoin in 2014 has been invalidated, and point out that there is no reason to use a large number of login password standards.

But they want to get supervision from the same government that encouraged DotCom foam. It is easy for them to forget that the performance of regulated securities from 2020 to 2022 is completely consistent with the main performance of the encryption industry. For example, they ignored DotCom, which spent hundreds of millions of dollars on the road to bankruptcy.

In addition, in the housing savings and credit difficulties, the regulatory platform slept on the wheels. From 2005 to 2007, this led to a real estate and financial foam. By 2008, the entire global economy had been in deep decline.

Many government-supported companies, such as Fannie Mae and Freddie Mac, provide low-interest loans to users of subprime mortgages, exacerbating this kind of risk.

The leaders of Wall Street in the United States have established a close regulatory strategic partnership with the government. They have created mortgage-applicable securities as strange fixed-income derivatives sold back and forth among large financial institutions.

By 2007, the chicken had already returned home. House prices began to fall. At this point, the regulated traditional financial market department's personal behavior of participating in the foam is simply crazy. This is also immoral.

Warren Buffett and Charlie Munger of Berkshire Hathaway will call them depressed and irresponsible. Long before the inevitable collapse of the housing foam, Buffett and Munger warned about it.

In 2005, in their view, the devastating impact of the housing and real estate foam and financial derivatives on the capital market was a major threat to the United States after the nuclear terrorist incident.

How can the regulation avoid the above situations?

This dilemma was formed under the supervision of American financial industry regulators. If traditional financial investment companies do not immediately respond to the regulatory incentive mechanism, they will also follow the regulation.

The adverse impact on investors and family finances has continued to date. The National Treasury of the United States may say that the collapse of the residential sales market has caused the loss of US $1.9 billion in household assets.

In addition, it is precisely the SEC that allows algorithmic trading difficulties, mysterious derivatives and crazy leverage to speculate in stocks. The confusion of TradFi disguised as "cryptocurrency" made a lot of money, and at the same time seriously damaged many people's accounting. Therefore, this does not mean that FTX has the same effect as BTC in establishing encryption target market.

Cryptocurrency is known as an objective, proper and honor fitness exercise for housing towards accounting. Although the traditional financial world has experienced the impact of 2000 and 2008, and the scope of regulation is so large, everyone has not realized that BTC is undoubtedly an answer to the global financial problems of the contemporary interconnected world.

It is inevitable that the recoil force will harm the good reputation and style of BTC and other cryptocurrencies. However, these so-called encryption items carry out interesting currency lending business processes as usual. These so-called encryption items are fake cryptocurrency, not real goods.

What happens when Crypto cooperates with the government and regulators

The worst is the encryption business processes that are greatly affected by the government.

Naturally, many sources said that after the bankruptcy of FTX, SBF was very active in the politics of the US federal government. The non-profit organization "Open Secrets" reported in November that:

"Sam Bankman-Fried, the founder of the cryptocurrency sharing platform FTX, is a new favorite in some current policy circles in Washington. In her testimony on Capitol Hill, she donated more than $990000 to the candidates during the election cycle, and also brought $38.8 million to the outside team, making her the sixth largest individual donor in the 2022 U.S. mid-term election."

Before the next change of Alameda FTX, the SBF program took out more than US $1 billion to support the candidates and topics she chose in the 2024 election.

The exchange between Winklevoss and his Gemini is also very suitable for Washington. Like SBF, he introduced big financial thinking into cryptocurrency, and actively advised and talked with regulatory organizations. These people suggested to Mark Zuckerberg when developing and designing Libra on Facebook:

"Cooperate with regulatory enterprises. Communicate with them. You know, of course, we have left the middle door. People try to educate regulatory organizations and create regulation by carefully considering methods. And if you misregulate, it will kill independent innovation, but correct regulation allows rapid development of independent innovation. For us, we have reached the right balance with New York City."

Therefore, there have been many reports that such enterprises are involved with regulatory organizations. However, do some people think that the regulatory attitude of TradFi is the main reason for bankruptcy?

Regulatory logical thinking is not thinking. This is a manipulation. It doesn't care how to produce other things. It is concerned with how to control an existing productivity level system software and how to prevent new entrants from competing in the market so that it has time to develop.

Crypto's development philosophy is that it does not need special handling and maintenance. It can grow healthily without supervision. The prosperity of cryptocurrency depends on opening up, equality and freedom, not bastion and supervision.

The community of Bitcoin expects its great-grandchildren to use this money, which will be more meaningful than ever before. It is a kind of loan currency initiated by an online community across national boundaries. Therefore, it does not believe that the future life lies in the supervision of the TradFi government. He saw its future in the code.

Carry out rectification according to non-trust rules rather than trust supervision

Cryptocurrency can be subject to government regulation. Like China, the government can enact laws to completely prohibit cryptocurrency. However, cryptocurrency is not the entrusted agent of the government.

Enterprises, even private companies, are all entrusted agents of the government. They filed with the government, ostensibly following the government's requirements, and paid taxes from their wages.

Although the cryptocurrency service platform or its assets may be the object of government behavior, they are not the core of the government. They are more like products (such as gold or crude oil) than joint-stock companies.

Cryptocurrencies like BTC are not private, but listed companies. They are app script production and information library for service platform customers.

The origin of Bitcoin is not regulation, but coding and market economy system. The market economy is guided by its reality and the participants themselves.

In addition, encryption companies such as FTX or Binance are entrusted agents of the government and are subject to government supervision on the day they apply to the government for registration and engage in business activities. Although BTC and most login passwords are all open source software, FTX, Genesis, Gemini, Three Arrows, Voyager, etc. are regulated private companies.

Now, this does not mean that they are doomed from the beginning. Binance still has a capital adequacy ratio and is a regulated private company. It is even recovering the unsuccessful competitors in bankruptcy.

Many of the world's most popular brands and the most valuable wealth are created by private enterprises and listed companies with the help of government regulation.

But BTC is just a shocking new product. It represents a completely changed way from government regulation. It belongs to a paradigm shift called open source system. Open source system fitness campaign has just begun to create exciting new probability for the world.

In the open source system environment, the best solution to people's long-term problems will appear in the independent network governance.