Updated on January 9, 2023 12:50 PM
When people talk about Crypto, they generally talk about its price fluctuations. They relate it with a piece tool to make money or to lose it. But from a broader and deeper perspective, Crypto is generally defined as Money Crypto and Tech Crypto. Even if we segment cryptos into two parts, it will make the regulations far easier to take decisions and implement them where necessary.
Let us try to simplify things by sketching a representation of the two primary value systems in the space:
Money Crypto thinks that the development of Sound Money is the purpose of cryptocurrencies.
Sound money is defined as money that:
1) Has a set supply or a known inflation rate.
2) Does not appreciate fast, and
3) Most significantly, governments cannot control it through inflation or confiscation.
Money crypto or Sound money draws significantly more user-generated, has a set of policy challenges that require rapid solutions, gives more to political races, spends more on policy professionals, lobbyists, and policy advertising, and is usually more sophisticated in how international, federal, and state legislation is formed and enforced. As a result, money crypto has set the agenda and defined the problems.
Governments will be obliged to act responsibly with Sound Money because they will no longer be able to borrow from tomorrow (through debt/inflation) to fund wars or short-term political aims at the price of long-term prosperity.
We currently have unsound money, which is exacerbating the situation. The capacity to generate money — literally and metaphorically — boosts the authority of any government, and any government seeks anything that strengthens its power.
This inflation, in effect, takes wealth away from those who generate it and transfers it to those who control the money — without causing anything valued by society, and it does so without citizens' knowledge.
According to Money Crypto, we should regard cryptocurrencies as money rather than as the next software platform or app store that will monopolize venture capital funding.
Bitcoin, not blockchain, is precisely what Money Crypto means. Nearly all Blockchain use cases are pointless and slow down and increase the cost of the application.
So the regulations should be intended towards Money crypto more than targeting the whole space.
On the other side, Tech Crypto contends that to fully understand how cryptocurrencies will develop and bring in the next epoch of the internet (i.e. Web 3.0), we need to study the history of the internet and its power structures than the history of money.
Tech crypto has taken a backseat. Tech crypto has a considerably lower profile because it has less money to spend on lobbying and policymaking, is less familiar with Washington, D.C.'s customs, and doesn't have as many existential regulatory problems on the table. The majority of lawmakers are aware of ether and its rapid price increase. Only some people are aware that Ethereum is a platform for computers. The protocols that are based on it need to be understood.
It is generally concerned with people who participate in the space taking the oath to develop the ecosystem to make it more sustainable and transparent.
From their ideologies to their slants, Tech Crypto and Money Crypto, in some respects, couldn't be more unlike. More economics majors who become libertarian anarchists make up Money Crypto. Engineers and technicians working for Tech Crypto are attempting to correct Big Tech's wrongs. "Tech Crypto is more gentle, touchy-feely social justice-y positive vibe-y hippies. Money crypto is more carnivorous borderline annoying intense uncompromising right-wing meat eaters," says Murad Mahmudov.
Neither of them is mutually exclusive. Thus it's too soon to say if either or both of them are correct. Both parties may be right regarding the ultimate result but dispute the process. Many members of the tech crypto community support the idea that money crypto is a critical element of decentralization.