Hi guys it's mark, so country is abandoning bitcoin. Influencers are fighting about it, governments are threatening regulation and even my own bank account was closed for investing in crypto. So today, let's discuss why this secret political battle being thought in the shadows actually matters what it means for our money. Well, let me start off by saying: 2021 has been a game-changing year for crypto and for better or worse, more people know about it than ever before this led to bitcoin reaching an all-time high of 65 000, but also a huge crash of 50.

The truth is it's not just bitcoin we've seen a huge price decline across pretty much the entire crypto sector. Ethereum and cardone have halved in value. Tether are still refusing an audit and please don't get me started on the price of dogecoin. So let's uncover the truth.

Behind why entire countries are trying to ban bitcoin what the banks are worried about and how gen z's new wave of investing has got authorities very, very worried i'll. Also, let you know how i plan to adapt my investment strategy in response to all of this, but before we jump into this, one make sure you hit that like button for the uh l tube, you go rhythm. First, let's look at our governments as their relationship with bitcoin and crypto as a huge sway on the overall market. By looking at how this relationship has changed over the years, we'll have a better idea of what the future holds for our investments.

So back in 2009, when crypto first rolled out, the government's attitude was pretty laid back. To be honest, maybe they saw it as some kind of fad kind of like tamagotchi or fidget spinners. I believe governments most likely expected an initial craze and then for everything to just fizzle out, but since 2009 it's only got bigger and now they seem to be taking it more seriously. Countries are beginning to crack down and some have even gone as far as completely banning it like china, nepal and turkey.

Crypto is rising, as so other stakes for governments worldwide. Mass crypto adoption is not good news for most governments due to it being decentralized. This is kind of like when you're playing a game of football with your mates, each player knows what the score is, and you can't change the score without convincing everyone playing that there's a very good reason for doing so. You may, for example, decide.

The ball has crossed the line after reviewing video footage, and then you all agree to change the score. So both casual football and decentralized crypto achieve a situation where you have multiple participants who have agreed upon a record of historical events, and that record cannot be tampered with by one person. Therefore, this makes it decentralized and not controllable by governments. This leaves governments fearing cryptos, like bitcoin, can be used for money laundering, illegal purchases or, worse of all, overcoming government control and making the current financial system irrelevant.

But why does all this matter? Well, countries like the usa and china are actually looking into launching their own digital coins controlled by the central bank so effectively taking away the decentralized part of crypto that they hate. Now you may be thinking, don't we already have digital dollars in our bank account right now, but that's actually not the case when you send money online, you're not actually sending money. What you're doing is actually signing over digital rights to money, but this system is extremely complicated and costly, as everything has to be verified, and it can take a lot of time. This future government crypto coin may be quicker and help make our lives simpler.

However, we would be giving away a huge part of our freedom. This would be the government's dream, a completely trackable currency, so no one can escape the tax man ever again and they've been trying to get rid of cash for a year. So this offers them the perfect solution. Number two banks: let's discuss the bank's hatred for bitcoin and crypto, can you imagine paying for a cinema ticket in doge or buying a house in bitcoin? The truth is, banks can imagine a world run by crypto they've probably been having nightmares over this topic in emergency meetings about how to combat it.

For years, banks are counselling transactions to crypto exchanges, freezing accounts and even closing accounts to stop the crypto boom. But is it too little too late? I think it might be. I appreciate as awesome as it would be. It's unlikely you'll be watching the latest james bond movie at the price of a few dogecoins, but it's absolutely possible that crypto will one day be accepted in this way.

Let's face it, the banks don't want to become irrelevant, which makes perfect sense. Really. The banks need us to keep depositing our hard-earned cash with them, so they can pay an extremely small interest rate and use our money to make huge profits. Maybe banks are shooting themselves in the foot, but i get it they're able to generate insane profits from our money yet give less than one percent of this back to us in the form of interest.

Whereas platforms like blockfire are offering up to 7.5 interest on crypto i'll leave a link down below where you can get up to 250 dollars of free bitcoin when you open an account with crypto offering such high returns really to me, it makes no sense that the Banks aren't offering higher interest rates to entice people in and then less people would probably be inclined to invest in crypto. In the first place, banks are cracking down on crypto as we speak. I even have my own bank account closed for simply investing in bitcoin. It's not just governments and banks trying to stop crypto.

We actually have some far more understandable issues at hand, i'm talking about environmentalist opinions on bitcoin mining and the effect it has on our environment. I don't think we have to be environmentalists to understand the huge impact bitcoin mining is having on our planet. I was talking to my father-in-law the other day and he was confused about how you can mine something that's digital. He thought they were literally digging bitcoin out of the ground.

I explained to him that many computers around the world are trying to solve complicated calculations in order to verify transactions and whoever gets the answer. Faster is rewarded with bitcoin, but competition and calculation difficulty is increasing. So, in order to keep mining, the minus computers are requiring more and more energy. It seems like we're in a bit of a downward spiral with this people waking up to this and realizing it's time for change.

It's had a mind-blowing effect on bitcoin's price and as investors. This is something we need to be aware of. Due to china's established technology supply chains and cheap electricity, they became the bitcoin mining hub of the world. China even hosted around 75 of all bitcoin mining in late may of this year, china, cracked down on bitcoin mining, shutting down 90 of all mining facilities and consequently, the price of bitcoin fell, 30 percent, even elon, musk and tesla are playing their part in cracking down On bitcoin, due to the effects mining has on our planet.

In march 2021, tesla announced they had purchased 1.5 billion worth of bitcoin and will begin accepting bitcoin as means of payments for their vehicles. However, in may they issued a statement over concerns for the environment and reversed their decision to accept bitcoin until it was much more energy efficient. I don't completely buy that. That was the real reason, as i just don't think.

Elon would have made a purchase of 1.5 billion dollars without thoroughly looking into it. However, it was a good enough excuse to postpone bitcoin payments. As you can imagine, the bitcoin price fell by another 17 when this news hit and that's a rough time for all investors. Now we're on to what i call the juicy part of the video crypto scams are on the rise and some people are even losing their life savings gambling on meme investments.

This leaves many people questioning if crypto needs some sort of regulation, and if so, what does this look? Like regulation essentially means putting rules on the entire crypto market. You might have heard the acronyms sec and fca. These are important as they stand for securities and exchange. Commission in the usa and the financial conduct authority in the uk, these both do pretty much the same job just in different countries, but they're both looking into crypto regulation to first understand why the sec and the fca are considering regulation.

Let's look at a few of these scams picture. This a pair of south african brothers vanished with 3.6 billion from their cryptocurrency investment platform. Afrocrypt, that's more than donald trump's entire net worth this platform was supposed to be the first south african exchange that had artificial intelligence trading. Investors were extremely excited for the project and they managed to accumulate 3.6 billion in funding with a pretty poorly animated promotional video to cut a long story short after receiving all this investment, they blocked access to the platform and just vanished with all the crypto.

It's scary to think that the ceo and founder of afrocrypt is only 20 years old and he's managed to rack up nearly four billions of other people's money at the drop of a hat he's even younger than my son. Crypto is often compared to the wild west and, to be honest from this story alone, i can see where people are coming from. It's become so easy to scan people out of their hard earned money that even reputable influencers are getting involved. Faze is a well-known group of gaming influencers and they were recently promoting a coin called save the kids.

This coin claimed to be redistributing wealth to both holders and charities. Influencers like phase k, faze, jarvis and rice gun, began to promote the token to their millions of fans, creating all manner of excitement. For the token to become tradable, and, of course, once it went, live you've guessed it. The influencers reportedly sold immediately securing profits, which left some fans out of pocket.

It's very confusing why they would get involved with something like this, as the potential gains are a lot less than their brand reputation is worth so it may well be that they didn't fully understand what was going on. I'm willing to believe that some of them even thought that they were doing a good thing. It's unfortunate that people are losing their life savings, investing in things that they don't fully understand and some people are being flat out scam. This definitely poses the question.

Is it time for the sec and the fca to step in and stop the wild west days of crypto? It seems everybody wants to ban bitcoin and crypto at the moment, which, as an investor, can be extremely worrying. However, i always invest long term and i can see the positives in all of this. In my opinion, bitcoin will never be completely banned across the world because, as one country bans it, another country embraces it. There is just too much of an incentive to embrace bitcoin and crypto in general, as there is now huge amounts of money tied up in it.

We saw this when recently el salvador accepted bitcoin as legal tender. Then we come to regulation. If it rolls out and prevents scams, it will just make crypto a more mainstream trustworthy asset. So i'm all for this as the more people that invest the more the market will stabilize.

It can be worrying when news hits which causes crypto to crash, but no one has a crystal ball, so it's almost impossible to time the market. I always think you have to be right twice once when you sell, hopefully at the peak and then once when you buy again, hopefully at the bottom. Instead of playing this guessing game and eventually getting called out, i'm just buying and holding and if the price drops then guess what i'm buying more and i'm holding currently i'm investing five percent of my portfolio into crypto. I've decided to split this 60 bitcoin and 40 ethereum and i'm buying this on the dips i didn't buy on the positive news of el salvador, except in bitcoin, i purchased on the negative news of china banning it.

To be honest, i don't actually see this as bad news, because i think, having 75 of the bitcoin mined in china gave them a little bit too much control. Now it's more controlled around the world. So that's got to be better, so i'm going to leave the next video right up there, but don't click on it just yet make sure to subscribe for more videos and pick up your free stocks with the links below okay i'll see you over there.