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News on Crypto Street
Do you remember when we thought those upstart neo-banks would disrupt the big banks? It seemed like Chime and SoFi had the advantage with their digital-first approach, but things didn't quite go as expected. I came across an interesting Wall Street Journal article titled "America's biggest bank is everywhere—and it isn't done growing," which sheds light on how JPMorgan and other major banks have actually become more influential after the pandemic and regional bank crisis.
The article highlights how these big banks have an implicit backstop from the U.S. government, which encourages people and businesses to trust them, making them even bigger. It's concerning to see this trend of banks becoming more controlled by governments for political purposes. The Economist even warned about the financial system slipping into state control, drawing parallels to the 2008 mortgage crisis.
In this context, it's interesting to look at Bitcoin. Unlike traditional assets, Bitcoin doesn't have the government's stamp of approval. Despite its resilience as a store of value, the U.S. government doesn't recognize it as a viable asset and is discouraging banks from getting involved with cryptocurrencies.
But here's the thing—the Bitcoin community couldn't care less. Bitcoin was created as a direct rejection of government-controlled money, and its dedicated supporters share a distrust of centralized authority. The question now is whether more people will see Bitcoin as a viable alternative to a banking system facing increasing political pressure.
It's quite ironic that the government's efforts to exert more control over the banking system could inadvertently boost an alternative form of money they want to suppress. History has shown that regulation for political ends can have unintended consequences, so it wouldn't surprise me if Bitcoin continues to grow alongside the ever-expanding big banks.
What are your thoughts on this?
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