Cryptocurrencies, especially Bitcoin, have been touted as the best means for people to take back their power from the oppressive monetary policies instituted by governments and banks.
Since cryptos came into being, this notion has gained traction and seen cryptos garner a good following from supporters of all walks of life.
It’s safe to opine that at the moment, a good majority of economic sectors have had a taste of crypto transactions.
However, while the decentralized nature of cryptocurrencies serve to give people power over their assets, there are still some issues regarding the true sovereignty in regard to the authenticity of the market and the forces driving it.
In a tweet, Jimmy Song sought to differentiate real sovereignty and fake sovereignty. Jimmy is a Bitcoin educator, developer, and entrepreneur.
According to Jimmy, real sovereignty must be accompanied with good discipline as well as rationality. That kind of sovereignty doesn’t take up too much time.
Relative to the crypto space, it’s exactly this kind of freedom that people have yearned for.
Crypto networks are governed by blockchain systems that depend much on logical computations to deliver – in this case the proof of rationality and discipline. They’re also fast. Users don’t have to wait for long for transactions to go through.
Although cryptos beat traditional systems hands-down on this scale, there are still a few issues to be ironed out before everyone is satisfied. Many of these issues regard the market and its dynamics.
A sovereign market is that which moves on its own accord going by the market forces and not being influenced by covert actions of any entity.
First off, the crypto market has been known to move very fast. It’s a very volatile environment. A bullish spike can send a crypto soaring by double-digit percentages within hours.
The vice-verse is true. It has happened to Bitcoin and others. However, there have been times when some people have felt that the crypto market is manipulated. This is what Jimmy Song would call fake sovereignty.
Fake sovereignty involves lots of FOMO and dumping of cryptos to manipulate price movements, something that a few in the crypto space have already been accused of. Some market movements have no rational explanation or time-frame.
This kind of deception gives people the illusion that they have power over their investments, when in reality only a few people make things happen.