Tuesday, March 6, 2018

With cryptocurrencies being the 21st century's version of the 'Wild West', perhaps it is not surprising the state of Wyoming wants to be its territory

There has always been alot of money to be made in the cultivation of new financial instruments and innovations, and this was especially true during the Western expansion of the United States in the 19th century.  And with limited territorial governments sparking a 'Wild West' environment as settlers, or in today's vernacular investors, pioneered into these uncharted and untamed waters, the ground was almost evenly balanced with both risks and rewards.

The cryptocurrency market is the closest thing we have had in a long time in the financial markets to a 'Wild West' phenomenon, and accordingly both the risks and rewards from investing in these digital currencies has been extraordinary.  Yet while sovereign governments have only begun to try to figure out just how to deal with the decentralization of a competing currency within their midst, one state that personifies the Old West mentality may be looking to embrace cryptos to their fullest potential.

Wyoming is reportedly in the process of introducing a number of cryptocurrency-friendly bills aimed at making the state the blockchain capital of the U.S. On Feb. 16, Wyoming introduced Senate Bill 111, which would exclude cryptocurrency from property taxation. The bill is part of the state's push to make Wyoming a haven for blockchain-based businesses. 
Wyoming has no state income tax, but the IRS currently classifies bitcoin and other cryptocurrencies as property. The property tax bill is the first of four crypto-friendly bills Republican state senators plan to back in Wyoming. - Benzinga
Just like how it is has been difficult to try to profit directly from the rise of e-commerce, the majority of money made from this innovation has been through the businesses and companies that have used and expanded on the technologies to build the eco-system we know today.  And this paradigm is also occurring in the cannabis industry where entrepreneurs are building the market up from virtually scratch.

Cryptocurrencies in themselves have become primarily speculative investments that experience massive volatility from day to day and hour to hour.  But the businesses, states, and entities that come to embrace this asset class could eventually grow to harness the chaos potential of the crypto sphere, and will be the ones that could easily turn into the next Amazon, Alibaba, or Comstock Lode.

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