What cryptocurrencies will survive the SEC crackdown?

The crypto industry is facing an Unprecedented threat last week the U.S Securities and Exchange Commission sued Binance and coinbase the two major Exchanges are accused of offering Altcoins that are allegedly unregistered Securities as a result some of these Altcoins were delisted from major Trading platforms which had a Devastating effect on their price in This situation of unprecedented Government pressure it is vital to Understand a few things what projects Out there have the characteristics to Withstand the SEC Crackdown are Bitcoin And ethereum safe and which tokens are The most likely to be targeted next I Address these and more questions in my Conversation with Dan held Bitcoin OG And educator I'm Giovanni on this show We challenge the ideas that shape the World of crypto in each episode we Assess a crypto narrative a Macroeconomic Outlook or a potentially Disruptive technology only the most Solid ideas will make it to the other Side before we start as always don't Forget to like the video and subscribe To our Channel also turn on the Notification Bell to keep up to date With our latest interviews and reports [Music] A couple of years ago you wrote a blog Post where you were talking about uh

Crypto mass extinction event that would Have come in the future the government Would carry out a massive attack on Crypto and basically only Bitcoin would Be able to withstand this attack now we Are seeing a similar scenario playing Out with the SEC uh basically cracking Down very heavily on the crypto industry With the lawsuit against coinbase and Binance and this is a massive day Listing of tokens that we are seeing now Is this event that we're seeing now the Crypto mass extinction event you were Talking about Um I think what we're seeing here is Sort of a micro Extinction event Um we're not seeing governments you know Shut off all Fiat in and outs to bitcoin And crypto Um they are going after some banks like Silvergate where they started to kind of Crack down on uh crypto banking Relationships who are not seeing a full On out attack we're not seeing Bitcoin Become illegal or any of these crypto Assets become Um you know they might be illegal Securities or they might be you know Unregistered Securities but they're not Making ownership of crypto like a a Felony offense or something like that so I think that we're seeing what I would Call like kind of a more micro Extinction event we're not seeing a full

Out attack on crypto yet and that event Would be where different crypto projects That do not have bitcoin's level of Decentralization they would not be able To hold up to an all-out attack by a Government and certainly you know Decentralization is a spectrum and That's where a lot of people like to use That term And I don't disagree decentralization is A spectrum but what's important is that Your protocol is decentralized enough to Withstand a government attack there are A bunch of Bitcoin maximalists some of Them are saying that the Crackdown that We are seeing on the altcoins uh is uh Actually positive for Bitcoin because it Kind of purifies the uh crypto industry From all this this projects that are Basically not Decentralized enough and they are Sucking out liquidity from Bitcoin do You share that same view Yeah so first I wouldn't consider myself A Bitcoin Maximus I consider myself a Bitcoin most in the list or like a Bitcoin moderate Um I think Bitcoin is by far the most Important project in this space and I do Really like the parameters that the Bitcoin Community has chosen to maximize Bitcoin's decentralization you know Zooming out is this good or bad for Bitcoin

I would say both uh good because it does Make Bitcoin stand alone in terms of a Decentralization in its asset Classification Um I think a lot of people are kind of Seeing like Bitcoin as this you know Pristine kind of clean asset Um you know whereas everything else Might be a little bit tainted so Certainly it does help Bitcoin Stand Alone Um I think on the cons side you know They're certainly the SEC might go after Unregistered Securities today but who's To say that they won't go after Bitcoin Tomorrow not because of you know the Government when I say they might go Um go after Bitcoin I'm not referring to Just the SEC I'm referring to all Government entities Um so just because they're battling the S we're battling in crypto the SEC today Doesn't mean we'll be battling the Treasury fencing or another entity Tomorrow so would prefer that um you Know I'm a Libertarian so I would prefer That you know Industries come up with Their own regulations rather than very Dictate you know dictator style Governance through through a regulatory Agency so libertarian in me doesn't like This At the same time You know it's happening so

Whichever one survive are the ones that Are meant to be around you mentioned the Fact that this situation is positive Because it makes Bitcoin Standalone on The other hand we see that for example The second largest cryptocurrency Ethereum is also sort of standing out From this situation because it hasn't Been mentioned as a security as an Unregistered Securities by the SEC so Far so don't you think that ethereum has Reached pretty much the same level of Decentralization as Bitcoin at the Moment I don't think so but it's also not Trying to be Bitcoin exactly so I don't Think that's completely necessary to be Its smart contract platform so they're Free to kind of choose whatever Parameters they want in terms of Optimizing for X Y or Z Obviously being a proof of work you know Advocate I consider the switch to prove A stake to be one that I don't agree With due to the game theoretic attack Factors that exist with a proof of stake System and also some of the enrichment That occurs with existing holders of Ethereum versus you know having to buy Miners and having to work into that Um so no I don't think they're Equivalently decentralized again this is Why I like Bitcoin anything Bitcoin is Made up made the right design parameters

The right political changes in the right Way To where Bitcoin can resist coercion and Attacks more so than any other thing and So I think ethereum probably has a good Chance of surviving Um so I would say maybe it's Decentralized enough to survive these Government attacks so you said that Decentralization is a spectrum so apart From ethereum and Bitcoin what do you Think are the other altcoins that have What it takes to go through The current environment at the moment You know if we're looking at pure SEC Attack so this is no other crypto Regular there's no other regulatory Agency it's just the SEC you know it Looks like any of the proof of work Coins Um haven't been mentioned in the SEC Filings so in their lawsuits against Coinbase and binance I don't believe any Proof of work coins were mentioned Um also ones that had fair or Transparent launches like Litecoin Dogecoin Monero Etc so it definitely Seems like the SEC has carved that out As something that they won't be going After so in terms of what can survive an Attack from the SEC It sounds like the proof of work coins With an original fare distribution so no Pre-mine seem to fit the parameter of

You know they're not worried about those Coins if there's a pre-mine Yeah pre-mind would mean like an Ico or Something where there's original token Distributions Those might fit their parameters of a Security under their you know under the How we test and other other mechanisms To determine that same with the proof of Stake yielding function but again this Is just one entity if governments were Too heavily attack and censor different Blockchains where they would go after You know different like AWS and other Hosting providers and if they turned off All of the ethereum nodes and all the Bitcoin nodes running on AWS how many People are running the node at home You know I think we would see that to be A pretty big issue especially with coins Like Solana I think Solana is a really Interesting project but they have traded Off decentralization for lower latency And higher throughput Um and you know that makes their their Data centers and the nodes on the Network more susceptible to being Attacked and taken down whereas Bitcoin Nodes have very low bandwidth and very Low storage costs which means more and More people can run them then you can Run it behind Tor for example which Tor Would make it very difficult to identify You so you know that attack Vector where

Governments would take a more militant Approach where they would actively shut Down Identifiable nodes on the network you Know then we would see I would see I Would say like a very dramatic Um you know very dramatic drop in which Chains are truly Like Trains would truly Stick around let's imagine that this Crackdown is going to intensify in the U.S uh Until like a full or or or almost full Ban on crypto in the US can be kind of Crypto survive without without the US I think so I mean the US is just one Country now our regulatory agencies are Often mirrored by other Regulatory Agencies so for example if rsec pushes Something forward then the Australian or British one might but we're seeing Countries like Great Britain The the UK fight back against over Regulation and they're embracing crypto So I see it as sort of a Marketplace of Ideas where if the U.S cracks down on Crypto we'll likely see it pop up in Other jurisdictions Um you know I think it's be very it'd be Very sad to see that happen in the U.S Because the U.S is typically perceived As a very open and and uh you know kind Of entrepreneur or friendly country and So that's where no I don't think it's it Would slow its uh the the space's growth

Trajectory but it certainly wouldn't Kill it Um it would just make the kind of growth In in adoption much longer we are seeing Now that the number of cryptos are Tanking because of this attack from the SEC would you say that this is a good Time to uh buy the bottom of this Project that we are seeing or it's still Better to ignore that and buy Bitcoin I Hold you know vast majority of my Assets In Bitcoin where Bitcoin is my long-term Investment where I do believe bitcoin's Return per unit of risk is the best in The space so yes there will be many Other coins that outperform Bitcoin over A certain time duration but will you Pick the right one maybe you know for Example like with Solana There was downtime a few times this year Obviously you don't want down time with Uh with the chain but again they're They're taking more risk and taking more An experimental approach which may or May not pay off in the long run but Holding that asset gives you you know a Longer term kind of risk uh versus Holding something like Bitcoin which has Lower risk uh and you know a low to Medium return versus something that's High risk High return what is your Prediction regarding the movements of The Bitcoin price for the next few Months when are you gonna see the next

Parabolic Bull Run Yeah well I think it's going to be a Nice torturous sideways chopping over The next uh you know six six months or So here ahead of the having I think Maybe later in the fall spring before The right when the having occurs in the Spring we might see in some movement and Then typically you know with previous Bitcoin Market Cycles we'll see post Having is when the action really starts To happen so I you know before having I'm not really uh not really too Concerned probably a lot of sideways Chop after the havings or after spring Next year that's when things really Start to get exciting so excited to see Uh if that plays out and the talk again With you Um in a few months so thanks again then For coming on our show it's always it's Always a pleasure to have you on Well thanks for having me this was a lot Of fun and uh yeah we'll certainly see What happens over the next six to 12 Months

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