Is blockchain technology is in trouble with the U.S. Senate's $1 trillion infrastructure bill passed early in August? It includes public transport and bridges, roads, water and sewer infrastructures, power generation, broadband networks, and electric vehicles (EVs). This is a long list. The question was, how would we pay for it all?
Unspent COVID relief assistance accounts for $205 billion. But lawmakers determined that $28 billion more would be available if tax enforcement is increased for cryptocurrency. This sounds fine on the surface. The devil is in details.
As a result, crypto "brokers" were required to give the Internal Revenue Service customer information. The administration defined "broker" to include anyone or anything that "effectuates digital asset transfers." This could consist of validators, crypto miners, software developers, and others.
It makes no sense. Brokers are not people or entities who mine digital assets and run nodes in a blockchain network. They provide the infrastructure that keeps blockchain technology networks functioning.
A smart contract doesn't have to be a person or entity. It is a piece of software code that runs on a blockchain network. The software developer who creates a digital asset wallet should not be considered a broker. They should not collect or report user information.
Although this may sound like the end of blockchain technology, it is not. The blockchain industry and digital assets should inspire us to be even more optimistic than ever.
Cryptos with blockchain technology are a global phenomenon that cannot be stopped. The development of blockchain technology is decentralized by definition, and some of these governmental developments are disappointing; they don't mean that the battle is over. It will continue to thrive, despite the infrastructure bill. We'll still have the ability to invest in this critical asset class.
Advocates for the Blockchain industry will continue to push for improved regulations and implementation in America. Digital wallets, for example, could be used to verify identity and prevent fraud. Everyone knows that identity theft is a significant problem. Blockchain is a quick solution.
Our driver's licenses and passports could be registered on the blockchain. We also have the option to record our voter registration cards and hunting and fishing licenses. All of them could be linked to a blockchain-based digital ID. It is absurd that we still issue pieces of paper for such things.
We could also link registrations for different government services to the electronic ID. You can think of Social Security, Medicare, and Medicaid. This way, all fraud, and corruption can be eliminated.
Blockchain technology will have a significant impact on how we do business together. Smart contracts are a great example. These digital contracts automatically execute when certain conditions are met.
Smart contracts can simplify the buying process. It can take months to close and cost thousands of dollars in fees. Smart contracts automate these processes and eliminate third parties. This would accelerate the process and reduce expenses.
Imagine buying a house in less than 24 hours with transaction fees at least 80% lower. Blockchain can also be used to improve supply chain management in businesses on a larger scale.
For example, in the pharmaceutical industry, blockchain would enable us to track drugs from manufacturing to containerization to the distribution center to the pharmacy and ultimately to the patient with a doctor's prescription.
This can be used to track the supply chain from the point of manufacture to the patient. Pharmaceutical companies can easily prove compliance with a regulated substance, such as opioid-based painkillers.
And these are just a few of the ways blockchain technology will change the world around us, which means, as investors, our opportunity is nearly limitless.
The future will see blockchain technology in every aspect of our lives. This is a huge trend, and the infrastructure bill will not be able to slow it down. This bill won't do anything more than temporarily slow down this trend.
It's still early, which is good news for investors. Blockchain infrastructure is still being developed. Blockchain tech is being used in many exciting projects. This means that we still have the opportunity to create wealth for generations. It's the right time to invest in this area - Invest wisely.