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Cardano (ADA) is the Next Bitcoin?

Cardano (ADA) is the Next Bitcoin?

Dear Crypto-Thinkers,

Keep your brain-caps on. It’s the time that we few long-haul penny investors outdo the professionals, since we have invested the time and sweat. And we can have our chocolate croissants too.

I often research how readers land on my relatively unknown and largely unread newsletter. I do this to both improve my information – I hope – but also to communicate what I think people are thinking. I mean Google Trends are one thing, but reading the fricking tea leaves is for the fools, like me.

I have more time to do this now, because I have spent countless hours, days, months, and now – years – with my nose to the computer screen looking at (investing in) cryptocurrencies. It all started before bitcoin, when I was looking for something like it…and now I’m here…and going slowly blind. (I’m old, what can I say. But I’ll bet I was in crypto before most.)

In some cases, I can pull the search phrases people use when they land on a post of mine. Lately, among a dozen other search phrases, someone asked a very odd question, but maybe it’s not so weird. Maybe I’m missing my own ship…again. And mind you, I’ve sailed a few rough seas and even the lake I live on in Florida.

It’s about Cardano (ADA).

The person who landed on my site, typed simply:

“cardano the next bitcoin”

…and that was it.

I thought, what? Replace bitcoin? Are you kidding me? A crypto that is still wet behind the ears, not fully tested in the crypto battle front and is split into at least three parts, a wallet maker, a marketer, and a coin/system coder?

And all the funny names associated with Cardano (ADA). A dead mathematician and the world’s first algorithm developer. Okay. That’s nice. Nostalgia.

The name of the new algorithm: Ouroboros. A tongue twister for us “ugly Americans.” The serpent eating its own tail. How nice.

And the name of the wallet?  Daedalus. Greek mythology. The skilled craftsman. Maybe a dead wallet?

This is all special, but the proof is in the dog, right? Will he eat it? And the answer is? Yes. Billions of dollars’ worth, in short order. That must be one hell of a shot in the arm. A vote of confidence. Trust. ADA is being consumed in hopes of gains and interest, in the Proof-of-Stake wallet for sure.

Cardano, as I understand it, is a system that is incorporating a new programming language. Like many crypto-projects, development is an ongoing process. With each roll-out, each new improvement, we often see a bump in value. A change in perception – as to what we think this system can accomplish. Then the lull, before the next bit of news. Perhaps a new exchange will list it. Great…then the bump.

I have watched Cardona climb from two cents. Wow. And few dumps. Incredible or telling? I’m pessimistic at present. I think – and I have been wrong – a dump is in the offing. And soon. Why?

Note: After I posted this,  ADA dropped almost 25% by January 6, 2018 — but so did a lot of other altcoins…

In my thinking, it becomes more difficult when your cryptocurrency is separated into parts, like Cardano. And when these parts are separated by borders, it’s even more difficult. Hence the idea of a Maritime Law system to anchor Cardano in the world of regulators, but not necessarily be owned by them. To say that this project is not ambitious, is an understatement.

Still, I was shocked, as I always am, when cryptos climb that first big wall. These days, with institutional investors about, banks going goofy over blockchains, governments seriously considering cryptocurrencies as fiat-replacements, and now “everyone” investing in this space – I am both happy and…worried.

When the dumps come now, they will be mythical in scope. As in, “remember when that altcoin dumped, and the government stepped in and shut down the…”

“…adding XRP…”

Coinsquare CEO Cole Diamond recently said something that made me wonder. Coinsquare is a well-known Canadian cryptocurrency trading platform, that by American standards, is light years ahead – as Diamond seems to imply. They are adding Ripple (XRP) next and there are more altcoins to come.

Diamond implied that they are now seeing a broader interest in the space. No longer are the younger investors about, but older ones – every kind of person and age.

That’s my take. They have arrived. And, they are still arriving.

This is good, but it could spell disaster. As in a Tulip disaster.

Which means what? It means, that there is still time to come aboard, but, as some have suggested, maybe not much time to magnify your investments. Unless you think in a different way.

And, I’m not saying that Coinbase, in the US, is slow on the uptake, given the draconian tax laws and regulations in the United States, not to mention their ongoing fight with the IRS, but they could end up in the doldrums, far from future trade winds, if they don’t act quickly to secure their place in the space.

“…Cardano (ADA), Iota (MIOTA) or Raiblocks (XRB).”

In any event, some refer to what is going on now as a “second tier” catch-up. In other words, as bitcoin, litecoin and ethereum appear to take a breath, there’s thin air up there, the next crew is making its move. Ripple, of course, being a first mover in this, but it is not really a new generation altcoin, like Cardano (ADA), Iota (MIOTA) or Raiblocks (XRB).

If you look, you will see that the old guard, such as Ethereum, are offering grants to help them scale – improve their products. Is this catch-up or forward thinking? A search for new blood? Isn’t it odd that Ethereum is considering a proof-of-stake concept, while Cardona works to implement same?

Seriously, I am enthusiastic about Cardona, but miss the idea behind bitcoin too. I feel that developers should be rewarded for their work, but we must remember how we got here. It was bitcoin. It was Satoshi Nakamoto. No matter how you bake it, split it up, rationalize it, the crucial core of it was bitcoin. And even bitcoin had its predecessors. But it was the proverbial “critical mass” and the saving grace. Almost nobody could control it. It was Pandora’s Money Box. And Pandora left only hope, if you remember your Greek Mythology – after she opened the “jar” of evils.

In the meantime, back here on earth, where Greek Gods are the names of sub sandwiches, let us man the lookouts, shall we? If we see a good target, even if it is moving, we need to take it out, bring it home, skin it, cook it and…eat it. Then think: “Next.” What other foods can we skin, before the big dogs eat?

Finally, as a side note, I have real heartburn with Peter Thiel’s idea that bitcoin, though nearly unmovable – considering the cost of transfers these days – is becoming the new replacement digital gold standard. A 20-million-dollar investment is peanuts for him, but a slight move to the downside wouldn’t hurt the Thiel profit margin, I guess. Is he coming late to the party? I hope so. My bets have been off bitcoin for months and I have profited

And I hope…like those who have contacted me…that you have also made a killing.

 

Sincerely,

 

Jack Shorebird

P.S. The above was advice. It meant: use your head and don’t let the nerds get you down.

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Bitcoin: The Immovable Object?

Bitcoin: The Immovable Object?

Here’s a thought, as I close out the day.

I’ve read and listened. Yes, it’s obvious that Bitcoin is becoming too expensive to use — to move — for the average investor.

For big investors, not such a big deal. Moving large amounts of digital fiats is also not cheap.

However, the vast majority are now trading to Litecoin (LTC) to move value. I know I do. Why pay a premium for slow service? But this does not convince me to buy Bitcoin Cash (BCH). This convinces me to look elsewhere.

It is rumored, as I and many have mentioned, that Ripple (XRP’s) could be slated to go on sale at Coinbase in the near future. And certainly, if this happened, it should boost prices.

Ripple XRP’s are also cheaper to move — to transfer. They would eat Bitcoin’s lunch in that department. Probably Litecoin and Ethereum (ETH) as well, with other benefits…except for one. You can’t, as of yet, hold XRP’s in your own wallet. They are slaved to the XRP servers.

Hey, does it really matter if XRP’s can earn you a tidy profit?

So, if Coinbase had XRP’s, they would allow you to buy them, right? I submit, in a sense, you will only “control” them. That is great for the supplier — for Ripple and Company — but not so great for the average citizen on other levels. No warm and fuzzy XRP’s to hold at night…in your “paper wallet?”

It will also be great for the regulators. You forget to pay any taxes and you will find out the hard way that you no longer own or control you favored altcoins…if you keep them on a regulated exchange.

Savvy? Why do you think bitcoins (altcoins) became so valuable? At least one good reason? Capital Controls.

Coinbase is on American soil. They must comply. So is Bittrex. So are others.

Bitcoin, in my opinion, is becoming immovable. Still very valuable, but figuratively heavier than gold, when you apply the fees.

What does this mean?

To me, it means bitcoins will sit. And as they sit, they will be found or at least become more vulnerable. More security will be required.

It also means that cryptocurrency exchanges will need to adopt newer cryptocurrencies in order to survive. And adapt to the changing regulatory environment in the U.S. and elsewhere, to carry on.

Maybe, as a result of these changes, if bitcoin remains the lumbering golden beast, we will be able to profit on the coming spikes in other cryptocurrencies. But in the long run, as these substitute altcoins attempt to bear the weight, won’t they also become overburdened?

Whether the privacy coins (Monero etc.) will win out, is a mystery to me, but I thought Vitalik Buterin’s (of Ethereum fame) hint about a Mesh based internet was curious. It could be a potential solution to the Net Neutrality issue and to ISP censorship in general. But a Mesh based internet would also lend itself to a more secure cryptocurrency network, even for the more public ones, designed like bitcoin.

At present, Mesh systems are in their infancy and any crypto running on them would need to be lean and mean…like Cardano (ADA)? Or Buterin’s new PoS idea that is pending for Ethereum? But bitcoin?

I’m waiting to buy my Mesh Device — that’s not app on my cell phone. But won’t they be illegal if Uncle Sam can’t spy on them?

Didn’t we see sci-fi shows about these devices decades ago? I know I did. A guy on the street paying a bill with his ‘device’ while holding it up to the other guy’s gizmo. I think they were mesh wallets!


jgs

 

 

Cardano (ADA) Drifting Lower

Cardano (ADA) Drifting Lower

Dear Cryptocurrency Enthusiasts,

It appears that Cardano (ADA) may be drifting lower.

This began shortly after 8:00 a.m. Universal Time and it has continued.

The high on Binance was .00003090 Bitcoin (BTC). That’s about 60 cents, American. And that was an enormous surge.

Less than five hours later there was a drop to approximately 41 cents.

The price range of ADA is about 46 cents, currently.

This kind of pull back is normal and should be expected. Even a crash to penny value is not out of the question — and that goes for any altcoin. But I think it doubtful.


There has been a great deal of speculation, to include Charlie Lee (of Litecoin) chiming in here, just as he previously rang some bells about IOTA (MIOTA).

From Charlie Lee’s Twitter:

I just noticed Cardano (ADA) is #6 on CoinMarketCap. How did it become a $10B coin when it’s only 3 months old and the only major exchanges trading it is Bittrex and Binance and without even any fiat trading pairs?

Either the market is crazy or Cardano will end world hunger.

Lately, Charlie’s opinions have been a bit curious. One wonders why he has chosen to highlight Cardano (ADA) now.

Litecoin is doing well. Currently, they trade at over $300 each. The altcoin appears to be growing in popularity, but investors are apparently looking for alternatives. This new crypto-environment might irritate others.

The fact that Litecoin has lived up to its idea of being the “silver” to bitcoin’s “gold” should placate some. The ratio is about right.

But enter Cardano (ADA). Slowly at first, then a sudden spike…

Charles Hoskinson replied with a poem:

Coarse the rush-mat roof

Sheltering the harvest-hut

Of the autumn rice-field;

And my sleeves are growing wet

With the moisture dripping through.

If you read through the replies to Charlie Lee, Charles Hoskinson explained what he meant by the poem, and it is interesting. He essentially means that he (and the team) will work in the “rain” or the drought. It does not matter. Good or bad.

It was a good response and Charlie Lee seemed satisfied with it.

It is also important to note the Charlie Lee did not appear to be negative about Cardano, but conciliatory. He stated on Twitter that he was sure it was great product and that he was only pointing out the recent valuations.

This seems to imply that Charlie Lee does not know much about Cardano (ADA), but anyone in this sphere should question when newer coins take off in this manner. It raises too many questions.

Certainly, Cardano (ADA) is young and the fact that she has risen so quickly, in the face of criticism and accusations, must concern the old guard. But let us not throw them completely under the bus. After all, they created and nurtured this space. They also have a right to call them as they see them — as anyone does.

But Charlie Lee “carries a big stick.” When he talks, unless he says something completely nuts, we ought to lend him an ear.

I wish ADA all the luck and hope she surpasses Litecoin (LTC) and challenges Ethereum (ETH) in short order. If she does, then the Litecoins and perhaps the bitcoins of the world, will need to step aside. For now, however, the game is afoot.

And we have to remember, although ADA is young, she was created by people who have learned in the ditches of crypto.

And an acorn needs “rain.”


A final note…the above poem is curious. It has layered meanings, that I am still reviewing. Why is this important? What one chooses to say or cite, can define one. I will explain more in another post, if Cardano (ADA) continues to impress.


jgs

 

 

 

 

 

 

 

Ripple (XRP) and Bitcoin (BTC) Speculation

Ripple (XRP) and Bitcoin (BTC) Speculation

Dear Cryptocurrency Investors,

Just a few more pieces of news and speculation. It’s dated information, but curious, in light of the the recent Cardano (ADA) run up.

Don’t take it too seriously.


First, the speculation:

Bitcoin might to pull back then rebound to about the $60,000 mark. Or crash to $1000. It’s all over the internet.

Here’s one source.


Secondly, Ripples could hit $9.00 each.

I can’t find the source on this one, but more conservative predictions indicate a $2.00 price range. (Source.)


Third, if you want a good (but a bit racy) bit of business education about cryptocurrency and some of the problems facing developers today, try this video.

It’s long, but speaks to liquidity, custody and regulatory issues.

It might also give you some insights into Ripple’s (XRP) direction.

Some apparently feel that XRP’s will be offered by Coinbase in January 2018. If so, this is big news.


jgs

Cardona (ADA) is Flying…

Cardona (ADA) is Flying…

Dear Cryptocurrency Enthusiasts,

This is just a reminder:

Watch out for the end of the dock.

Currently, Cardano (ADA) is experiencing a serious growth spurt or a fair amount of speculation.

Be on the watch for a correction here.

And I hope I’m wrong.

Remember, Cardona needs more legs to stand. It’s main exchanges are Bittrex and Binance.

 

jgs

 

 

Cryptocurrency: “…and Bitcoin Must Burn!”

Cryptocurrency: “…and Bitcoin Must Burn!”

Dear Crypto-fans,

The crypto-fake-fintech-news continues, but the tide is turning in some few lands. Slovenia maybe. Singapore, possibly. Nigeria? Yes. But I won’t be emigrating.

Google trends are showing an upswing of late.

But the battle against cryptocurrency is also gaining momentum. The reaction is fomenting. Like Cato the Elder’s call for Carthage to burn, so too are the princes of the day signaling their intent, through their mouthpieces on retainer, that non-princely crypto, must also be destroyed.

The most recent pretext to dump bitcoin and cryptocurrency, besides bubble fears, is that fiat currency is “backed” by the government or the Central Bank. That such a thing as cryptocurrency, which does not enjoy the toxic fruits of the government fiat monopoly, is intolerable and hopeless.

But this assertion is ominous, not glorious. Whether you believe Clif High, that Bitcoin will far outpace the value of gold or you want to take to the shadows with your secret Bytecoin, the princes are on the march. They care not if you chose Cardano (ADA), but might let up, if you wade into Ripple (XRP).

And we cannot reach into our television sets, our computer monitors, our tablets or cell phones, and shake these intellectual Lilliputians by the shoulders and yell, “Hey, Brainiacs, fiat money is also NOT backed – except by a gun.”

“How dare you think that, you finite fleshpots.”

That’s how they respond, in my translation. Shake their ponytails, peer side-long down red veined noses, lick their finely wine-soaked lips, point to the proper ends of their overcooked eggs, with bejeweled digits, and leer at us subjugated subjects – with the aplomb of the imagined royal birthright.

Two such peers of servitude deserve mention.

“Alan Greenspan…Jamie Dimon…”

Alan Greenspan? A former gold bug, now completely in tune with the Fed or is that the vampiric feeding of inflated monetary dogma?

Jamie Dimon? A bankster in the Morgan mold or is he a dollar-defender, through hell and devalue?

Here are a few more bitcoin bashers to peruse.

Deep thinkers of the bygone epoch, where it is said that monetary conscription is better than gold-backs. Where the song of sound money, as sublime and powerful as it is, cannot meet the rejoinder – the princely power of the purse, under guard.

What do these bashers of bitcoin really mean when they say that cryptocurrency is not “backed” by Johnny Law? They mean, dear readers, that the prince is not in charge of the peoples’ currency, i.e., cryptocurrency.

And that is the crux of it. THE PRINCE HAS NO CONTROL. Paupers must mind their prince.

The prince’s fiat money is “backed” by his soldiers. You must use it – or else.

Think on that, each time you pull that fiat from your wallet with that picture of the current or past princes. This currency is “backed” by the point of a gun, the threat of jail if you refuse to use it, or large fines if you dare to abuse it. It is called forced compliance.

The Federal Reserve Note, is your contract with the prince. Do no fail to abide by the terms.

Has not humankind outgrown such princely designs?

The religion of money…

Most currency, that plastic card, paper or digital noise stored at your bank or under that rock in your yard, is worthless-worth. It is backed by nothing and the power to “make it work.” A promise to pay zero and from that zero, substance. The religion of money, if you will. To make nothing buy something. Just believe, sayeth the Prince of Fiat.

Every school child should know this. Government fiat is “myth money.” Fantasy cash, you are compelled to use.

The soldier “backs” your princely fiat these days. Except, to him, you are the enemy. Harsh words, but relevant when comparisons must be made with cryptocurrency.

Fiat crypto, by comparison, is an all-volunteer army. In this scenario of sin, the prince of fiat is dead.

And about the noble metals. There are no gold bars at the bank – in most cases. Even the Swiss have denuded their banks of metal. But the Swiss people, being a lot more intelligent than their host of princes, have stored gold in private vaults – not banks. Unfortunately, the princes are aware of the locations of such vaults.

But who owns that gold? You think American and Japanese billionaires don’t have a dog in that fight? Sure, they do. Will a Swiss Army man care to back your Swiss stored gold, if his prince reclaims the bars, for the good of Switzerland?

And private vaults abound these days. Do you wonder why? And are these vaults safe from the princes’ soldiers?

…myth money…

Cryptocurrency is also a myth money, a fiat currency, but it is different too. The prince does not own the cryptocurrency fiat money machine. The people own crypto. It is a detached system of fiat currency that circumvents capital controls, i.e., the Prince’s Rules of Trade. And there are dozens of competing blockchain alternatives, not simply one princely fiat system.

The prince is fuming about this. How dare his subjects create their own fiat currency. Don’t they know that fiat money is backed by nothing – not even the princes’ soldiers?

You might wonder how a cryptocurrency system can invade and dislodge, peaceably, the Prince’s Bank and essentially rob him of his ability to conduct business. You might also wonder what the prince is going to do when his fiat currency begins to devalue so rapidly that he can no longer pay his castle employees the proper level of wages.

He will need to pay his soldiers some how and maintain his dominance.

Will the prince seek to control all the cryptocurrencies on earth? No, he does not have that power.

Could our Prince enlist the help of other princes abroad, hold a summit in a foreign land and gather the forces of many other princes and kings, to block this crypto-virus from spreading?

Maybe. He and his soldiers, who he pays in Bright Prince Fiats, must team up with other lands to thwart this growing threat, before it’s too late.

…a gold standard…

In the meantime, some gold-bug few of the Prince’s own citizens, wealthy masters in their own right, the ones who have decried his use of fiats for years, call for a gold standard once again – and for the abolition of crypto, henceforth.

The prince, seeing a way out of the crypto-crisis begins to devise his plan.

The renewed gold standard is enacted, sort of.

The prince has all the land gather their hoards of silver and gold, deposit them into the banks he controls and promises his subjects, that from this day forward, sound money will reign supreme in all his lands.

The prince’s subjects, save a few wary ones, deposit their golden hoards, which they have hidden from the princes of past and present, into the princely vaults. Record amounts of gold, silver and diamonds, flood in and the subjects are ecstatic.

Even the prince smiles, benevolently praising his lands. “For the good of my subjects!” he laments. He feigns emotions at just the right moments, as his advisors have advised.

The subjects of the lands, relieved of the dual threat of the crypto-virus and the prince’s own fiat money scourge, forgive the latter and bash the former with abandon.

Pronouncements echo and postings are posted all over the lands. Town criers cry. On every tree and jailhouse wall, flapping in the breezes, are the grand and memorable memoranda: sound money is the order of the new day.

Of course, our Prince, along with all the other princes and kings; and not a few queens of dubious nature, have simply activated their plan to cast a shadow of disrespect over the whole of crypto.

“You see,” the prince quips, as he lounges on great pillows, attended to by subjects knowledgeable in the ways of arcane finance, “crypto is fiat…and princely sums are sound money – backed by gold and silver! I have returned to the ways of old gold!”

But the plans these of princes is most certainly a mirage. They, the princes and kings, the dubious queens and tyrannical tricksters, have merely confiscated the gold and issued multitudes of fiat. They have also declined to report the exact amounts of gold and silver in their safe-haven bank vaults, under their control and properly guarded by soldiers of the crown, by and for the good of all subjects, of course.

“Security,” says the prince, “is of vast and secret importance! Therefore, for the good of all subjects, I will keep the location and amount of princely precious metals undisclosed.”

…gold and silver and jewels…

What’s more, the prince, seeing to the secret security of all this gold and silver and jewels, has it moved from the banks and consolidated at his Summer Palace. A palace which is really a fortress far from his subjects and heavily guarded by loyal soldiers, who are paid in actual gold.

Princely subjects, fighting for the flag, dying for honor and dust, must dine, once again, upon the quantitative ease. No more are they worth, no less should they breathe.

Do you see any parallels here? This is essentially the repeating history of money. The Classical Liberal societies start with gold/silver monies then they devolve into socialistic fiefdoms and fiat systems controlled by the prince. A prince, who requires all your private information, to keep you safe from the wanton criminals and be able to reallocate your accumulated wealth as you live; and upon your demise, absorb your gold – all for the good of the prince’s subjects – meaning us, whether we like it or not.

And you wonder why the subjects currently trust fiat cryptocurrency over gold – for now.

The subjects – paupersdo not trust the prince.

Perhaps one should look at this trend. Bitcoin is gathering more interest than silver or the dollar. That’s an eye opener.

When do you suppose the interest in bitcoin will surpass gold? And does it have staying power?


Sincerely,

 

Your Friend in Crypto…

Jack Shorebird


Disclaimer: Believe none of what you read herein, half of what you see, and bow to the prince every night, before your subject-slumber, if you think that I’m not serious…

Cryptocurrency: Dreams in a Bottle or a Bubble?

Cryptocurrency: Dreams in a Bottle or a Bubble?

Dear Cryptocurrency and Freedom Lovers of Earth:

We are just dreamers waiting for the big bad bubble. Lean over and kiss your bitcoins goodbye.


Bubble Trouble

Cryptocurrency is a bubble.

It’s the 2.0 try-outs, since we didn’t believe them the first thousand times.

We love Ponzi, they insinuate. We probably initiate chain-emails in our sleep, insert cryptocurrency miners on your webpages, and dream of pyramid schemes…as we pay our extremely reasonable .gov taxes.

Cardano (ADA) will surely explode.

Monero (XMR) will implode.

Electroneum (ETN) will evaporate.

Ethereum (ETH) will wither smartly, and die.

Cheaters and meanies are hiding in the dark corners of those ICO-laced cryptocurrencies.

Bad people, the lot of them.

Run back to gold?

“Hey! But we love the blockchains! Just not the ‘people’ running them.

“You see, us banks and .govs – we do a much better job popping fiat bubbles. We just go around, blowing them up, making you go broke and then we do it all over again!

“And us metallic mega-hoarders, well, we can dig it too! And hopefully, one day in the far-flung future, gold will become what it once was: money. And then us mega-hoarders will win the day. We will say, on that day, if that day ever comes again that — we told you so!

“We can’t wait. It’ll happen soon, we promise!”

At least some of the gold bugs are on board the crypto-train. Guys like Mike Maloney. He’s a forward thinker, unlike others…

The lesser numismatic gods, the ones still hoping to influence President Donald Trump – to take the US back to gold – are instead bashing away at crypto. Maybe they don’t realize that they are, at the same time, bashing away at liberty itself. Not such a brilliant tactic as it is a calculated risk.

“Tell these Millennial dolts that cryptocurrency not stamped IN GOD WE TRUST and FEDERAL RESERVE NOTE is NOT money. Jeez, the humanity of it all. Tell them gold is the answer – immediately.”

Is that the general feeling you get from some of the golden metal-heads? The ones who warn of crypto-bubbles and hope for altcoin death, in situ.

And the best gold bugs? The proud Sharia Law complaint versions of them? “Oh Canada!” they sing aloud on their days off, from those frozen roof tops.

I take you now, dear reader to the halls of GoldMoney. In Canada. There, the money (no not money yet) is GOLD! Actually, the company was called Bitgold before that, but cited regulatory problems and low demand, before shutting down.

These golden folks have allowed to be posted on their website (and I’m almost certain it will be taken down like another YouTube video that fled in haste — business is war, right?) are the illustrious words of one Bubble Attacker: Alasdair Macleod. For shame. (My opinion.)

Macleod is an apparent researcher for the company in question, hence not the best disinterested party, right? A mouthpiece? Hmmm.

Then there is a far more corrupt banking industry to consider. Finance houses practicing insider trading. A Fed that feeds the US with worthless notes. Just read the headlines. Wells Fargo. JPMorgan Chase. Bank of America. Quantitative Easing. (Not an opinion. Facts.)

Need I say more? Aren’t you sick enough yet?

It’s not the banks or the .govs this time, however. It’s gold. Or more precisely, a troubled offshoot of gold bullion pushers surveying the crypto-landscape and taking careful aim.

 

Crypto Kills Fiat

To talk of cryptocurrency bubbles that will occur and describe them as a dire menace to .gov fiat is pandering to the .govs of the world. Gold money is a far worse threat to the .gov machinery and they – the bullion dealers — know it.

If people were actually allowed to use gold, silver, copper – as money – the Fed would close its doors and the Military-Industrial Behemoth would most definitely become rather irritated, if not hungry.

The .govs would need to finance themselves with real money then. No longer could they pass on the costs via inflation taxation. They would need to beg, borrow or steal the gold – again – from their subjects.

And that is always a problem, isn’t it? Gold theft?

And why can’t some companies see that? Especially ones in North America? Don’t they understand that before gold can become money again – that the entire centrally planned economic model must be dismantled? That laws must protect the people from their .gov?

It appears that Our Golden Savior of Canada is sounding that alarm, however. Or at least helping to ring a few bells to scare the cryptocurrency birds away. Darned pesky eagles just won’t die. They want to fly at any cost, even if it means creating their own crypto-fiat money in a world gone money-subservient.

It’s also a way of diverting attention – heat – from them. And a way to “sell more gold!” Soon they might begin knocking on our doors. Or you’ll see them at flea markets, not buying gold, but selling it!

Congratulations bullion traders of the Great White Socialistic North. Not that the US is that far behind either, but strike while the bubble is hot! And the bubble attack is ongoing.

But we need new material, not tired old rinse-and-repeats.

It reminds me of Chicken Little when he yelled, “the sky is falling!”

I’ll call them, those Gold Money guys and gals, Our Golden Savior. The bell ringers, who are losing investors to cryptocurrency. And who only want to make sure you and I aren’t being swindled, right?

After all, gold is money. No, it’s not. Not yet anyway.

 

The Warning

One Macleodian article on their website (and also here) talks to us about bubbles. But this does not irritate me as much as the Canadian based Sharia Law Compliant company does.

I mean, gold and precious metals are no doubt great value keepers, but dear fellas, we do not live in a golden age. I swear. I just called my bank. They said that they can arrange to store any gold I might wish to purchase; however, I can’t use it as money. (No thanks.)

You can’t spend it, your gold – in the US – like money. The IRS wants an accounting of each transaction. Just like cryptocurrency.

We live in a fiat-currency age – in the US. We are jammed in tight. Well, there is one out. It’s called cryptocurrency.

Gold is taxed as property in the US, which makes it terrible to use as money – even debit card based. I believe Peter Schiff advised this long ago, but now – he has joined them. And now…these facts seem to have drifted away. Little tax bombs ready to go off in April, when you have that “awe shucks” 1040 moment.

Don’t get me wrong, I would rather use precious metals, as money. I’d love to have a sound money system, but this fiat thing is just going to have to burn itself out first. Venezuela style. A little Greek fire, as it were.

The article in question asserts that gold is on the minds of many. Granted. Any form of sound money ought to be. If gold was money today it would be on everyone’s mind. Well, most everyone. Some actually like the fiat money system and socialist governments.

The write-up also warns, yet again, about the pure and shiny new bubble. The cryptocurrency bubble that is sure to burst – someday.

The problem is the golden .gov wall, however. We are all looking at that wall and asking ourselves the same questions.

Is there an alternative to gold, since I can’t spend it like cash?

Should I buy a few pieces of a precious metal and store it myself or should I use a gold bullion dealer in Canada? A dealer with gold all over the world in nice vaults – all on the ‘up and up’ – but far away…?

 

Crypto is NOT Money?

The primary debate against cryptocurrency, that it is not money, ought to be jettisoned.

We know this. We know it is not money.

Gold can be money, but it’s not either. It’s just gold, for now.

Cryptocurrency is more closely related to a functional currency or a service money, but it is a form of fiat currency as well. But a far superior fiat currency, for many reasons. And rather crappy, as well.

That’s what we are living with. We can use cryptocurrency, with all the associated risks or we can obey. Now do you understand?

Why did people risk their lives to come across the oceans in hopes of a better life? By comparison, this rather low-key way of transferring wealth is lame by comparison. It’s an exercise in freedom, however frail. The thing is, the .govs need to crush it in order to stop the virtual and peaceful sit-in.

 

A Bridge to Sound Money

Cryptocurrency is a bridge. It is a way back to sound money over the river of .gov fiat systems currently in place. It is the bank waiting to store the gold, so to speak. Only, the .govs stand in the way, so there is an impasse.

Who will blink?

How could crypto bridge to gold?

View it as a check or a contract.  A voluntarily enforceable one for now, but one that would easily fit in as a legally binding instrument against a rare commodity, such as a precious metal. Banks could accept cryptos in exchange for silver coins in some enlightened future. That ‘backing’ would likely stabilize cryptocurrency values.

The problem is that precious metals are currently locked out of legal tender status. The same can be said of cryptocurrency, except it has many other advantages neither fiat money or gold has – at present.

A gold bullion dealer is no less vulnerable to .gov regulations, than are most public cryptocurrencies. There are more private cryptocurrencies, however.

 

Privacy

And that brings up the idea of privacy. The love-child of cryptography and blockchain services.

Unlike the bullion company in question, where I need to give my name, address, income, photograph, ad infinitum – let them dig into my personal life – I don’t need to do that with many cryptocurrencies. Not with CryptoNote versions; and I can find ways around those exchanges now asking for my goods, as well.

The argument that the cryptocurrency companies, promote their own coin – buy in, pump it up – is a given. This is also true across the spectrum of stocks and bonds, in the restricted .gov regulated trading houses – where the brokers take their cuts and fees; and slice the pie more often than the average cryptocurrency exchange. All at the pleasure of .gov.

 

Early Adopters

Certainly, early adopters could make the most profits in a cryptocurrency economy. Ground floor opportunities have that potential, but this does not validate that a bubble is on its way. This is unlike the fiat cash flowing into the stock market and extinguishing any semblance of a P/E Ratio.

The obvious measure that bitcoin, for example, is a self-verifying property mechanism, is difficult to ignore. The limited virtual supply of bitcoin can drive its price. It’s ability to maneuver unhampered is juxtaposed with the .govs’ desire to bring it to heel. There is no P/E Ratio here. It’s absorption of one unstable fiat by a stable one.

Can that be said of our bullion buddies? Not the ones who sell us gold and silver and we stash it elsewhere, but the one in question. The one that essentially keeps our metal safely locked away where we will never see it and where any wayward .gov can grab it.

You call that safety? Try and grab my fiat crypto. Go ahead.

How did that work out for you?

It didn’t, huh?

 

The Undermine

And the fact that cryptocurrency can “undermine” capital controls is not a weakness. Money, ultimately, should be private. Taxes, ultimately, should be voluntary.

Did you not read the word “controls?” Who is doing the controlling and why? By what right?

Why must I send my cash via banks, be over-charged, wait days, when I can zip crypto to my Aunt in South America in seconds and do it much cheaper?

Hence, cryptocurrency is pro-freedom, whereas the company under scrutiny is compliant. But it must be, right? It has chosen the obedient path.

And fiat currency issued by .gov, is, of course, fiscal subservience.

If allowed to go mainstream, those cryptocurrencies that wish to comply with the long list of rules and fees, could certainly see radical value booms and busts. Obedience will have its profits.  After this alleged legal adoption, when the investment houses flood in, the public will take notice, as the assertion goes. The bubble will come as a result.

 

Pre-Bubble

So, the article in question makes the assumption that the .govs will eventually acquiesce to the public cryptocurrencies. Ones like traceable Bitcoin, Litecoin or Cardano. Then it all goes pop!

Why are the bubblers so certain? Past comparisons?

The South Sea bubble, where corruption was rampant? Government granted monopolies are not comparable to voluntarily purchased, transparent cryptocurrencies.

The Tulip Mania bubble is often cited, but the fact that much of Europe was debasing their currency at the time, is not often explored. Interesting parallels, but tulips aren’t cryptos.

Additionally, since many CryptoNote based cryptocurrencies are not designed with regulations in mind, this bubble warning only seems to apply to the public blockchains, like bitcoin and family.

According to the assumptions in the article, this future flood of bubble wealth into public cryptocurrencies will also cause prices to rise. Another dire warning.

That’s the static world view. In other words, more money into crypto equals more spending, equals less goods available, equals higher prices.

The problem is, when demand increases, in a free trade economy, the supply is often increased, and everyone wins. Prices often come down, in such economies.

This static theory of rising prices also ignores non-spenders. Some will save and not spend.

 

Choking

Yet another bubble warning is the “choke-off fable.”

Once and if .gov fiat currencies begin to falter, interest rates will be raised to entice crypto-investors away.

One problem with that scenario is rising interest rates slows the economy and could explode the debt and pop the fiat bubble all the faster.

Another? That crypto holds far more promise of profit than bank certificates.

If .gov could lure the crypto enthusiasts away from their chosen altcoins; however, what would stop them from also confiscating all the gold? After all, gold does compete with fiat currency and it makes fiat devaluation clear. An embarrassment to be certain, but one that can be easily remedied with an official announcement of fiat currency to gold conversion. It’s happened in the US before. Quite a choke I would say.

And we are only talking about the US here. There would need to be an international effort to quash crypto. Raise interest rates all over. And suffer the consequences.

A credit crisis would be the least of our problems then. Fiat currency would falter and I’d posit that cryptos, absent a move to a sound money standard (gold) by .govs — would maintain their purchasing power, so long as .gov didn’t zap the internet. Then we’d need to use stored reserves (gold/silver), eggs, canned goods and wine.

 

Conclusion:

The upside is that gold is real money, but it is not legal tender. Until then, it appears rather sluggish.

To state that private cryptocurrency is a threat to .gov fiats, that they could hasten their demise, is a bit disingenuous. Fiat currency is a threat to all of us already. If crypto hastens its demise, so be it.

The company in question is no less a threat and perhaps even more dangerous to investors, when one considers all the precious metals under their private control and the ability of any one .gov to remove said stores on a whim – or a “trumped up” national emergency.

In short, to return to a precious metal standard will require new laws in the US and elsewhere. It will require the closure of the US Federal Reserve, unless they begin to issue gold backed currency. It will then open the doors for competition between banks, with real money in their vaults. Money that should also be in your country of residence and not Dubai, Toronto, or Hong Kong.

Until then I’ll risk a crypto-bubble and pass on the debit card of gold, from the company in question. While waiting for the laws to embrace sound money, I will grow old and I hope rich, on the only form of successful liberty-currency I have ever witnessed in my lifetime: cryptocurrency.

 

Sincerely,

 

Jack Shorebird

 

P.S. Don’t let the .gov buttheads get you down. And think before you buy into Bitgold GoldMoney.


The above is my opinion. Make sure to consult your gold bullion dealer, economist, attorney, accountant and hair stylist, before you chance the Greatest Crypto Bubble of all time!

Do You Own “S2S Compromised Cryptocurrencies?”

Do You Own “S2S Compromised Cryptocurrencies?”

It’s about peers versus subjects, is it not?

Are you a P2P or and S2S Person? That’s the gist of it, right?

P2P is what? Peer to peer, right? Person to person.

S2S is what? Subject to subject. Slave to slave, in some countries.

Pause. Think. Slave to slave = S2S?

So much is said in that P2P acronym. So much is lost in S2S. It matters.

If you are P2P, you are probably safe. But you can be safer. You can do one better.

As an S2S believer, you are in trouble. But don’t take my word for it. Ask Mr. History.

When observing the changing cryptocurrency landscape, we note capitulation and appeasement. Those who bring change; and those who want to stick to the old way of doing business. If not the old way, then bending the new way to the will of the old.

But P2P is not new. It has just been adapted to the blockchain.

S2S is the old way.

Why do we own certain cryptocurrencies, but not others? Why is the P2P idea the best thing to have hit cryptocurrency, let alone the human condition, in thousands of years?

But…there is P2P and there is private P2P, correct?

Many of the newest breeds of crypto-entrepreneurs have forgotten the words of Satoshi Nakamoto and have instead, chosen to use the blockchain technology for other reasons. And there is nothing wrong with that, save the lack of vision of such people. The automatic and almost tribal reductionism is inherent in the herd mentality.

In other words, the desire of many to belong to the herd at any cost. Spare no expense, they say. Trade your privacy and your freedom for a false sense of security.

Don’t rock the boat. Don’t go against the flow. You don’t really need or want P2P. You need S2S. We hear this so often.

So, let’s recall those words, just a few of them, purposely embedded within the Bitcoin Blockchain. “Satoshi’s Warning,” I will call it.

These words resonate today, and I submit that they will resound into the future — if we are still here. And these words will be taken more seriously in ten or twenty years, if world economies do finally collapse, and if cryptocurrencies save the day after that foreseen collapse.

The warning:

‘The Times 3 January 2009 Chancellor on brink of second bailout for banks’.

This statement gives one the clear sense that Satoshi had a problem with governments and bank bailouts. He did not agree with the current monetary system in general.

Why?

We can speculate about his motives, read his various quotes, but can we agree that he/she/they invented a well-functioning, but not private, peer-to-peer e-cash system? It seems to me that Satoshi, and I have stated this before, provided the outline – the foundation – upon which others could build.

And remember that: P2P. Let that echo over and over until it seems to lose meaning. Until the echo of it comes back after a time and reminds us what it really is. What its value really is.

P2P is that rock in the river, standing against the tide of financial tyranny. If that rock is hardened (privatized), all the better, but bitcoin’s P2P rock sits high in the rapids. It is “exposed” P2P and it is sandstone. Sandstone will not last. Even so, some want to convert bitcoin to S2S, now. They want to blast that sandstone apart.

If “exposed” P2P is the core value of the bitcoin service, how can it be improved? Satoshi warned that this P2P system was only temporary. That it probably would not last. Was he correct?

Satoshi showed the way.

Then Nicolas van Saberhagen came along and privatized the blockchain. It was the next step in the evolution of blockchains. Many other P2P models are “exposed” at some level.

Saberhagen (he/she/they) created CryptoNote and after a rocky start a new crypto pulled away from the pack: Monero (XMR).

Monero has one well known face: fluffypony (Riccardo Spagni). He came forward and I submit, took his freedom in his hands when he did so.

For all the rancor surrounding Monero and all the concerns I still have about its developers remaining behind the curtain of anonymity, I respect Mr. Spagni. And that is the point: trust. Not to mention that Monero was the first successful private crypto on earth. (Okay – that’s an assertion. Prove me wrong.)

There is another crypto that deserves mention here and I have cited it before. Aeon. “Smooth” is the developer of Aeon and works on Monero. Smooth is anonymous. This might be important in the future since Monero is slowly gaining acceptance on an international scale. Aeon would seem to be the logical partner in that effort.

And there are other private crypto’s out there, but I am only mentioning Monero and Aeon in this post as examples. Many of the other privacy based coins do not have the longevity, have changed hands, or have known developers – which is a risk.

There are arguments against the PoW (proof-of-work) based blockchains, such as Monero and Aeon, as well. Even bitcoin uses PoW, but Ethereum is apparently considering a PoS (proof-of-stake) blockchain addition or change-over. PoS is more energy efficient, certainly.

Obviously, these “proofs” will evolve over time, but getting hung-up in the debate may not be the best course of action.

In fact, allowing the salesmen, flush with crypto-cash, financed to the gills with venture capital, to present vivid images of Crypto 3.0, is a trip to S2S.

How so? These salesmen, often experts in the field of blockchain, are not experts in the field of privacy.

The war now is to destroy the very essence of bitcoin and any cryptocurrency attempting to remain private. It is an effort to undermine the best P2P out there. Usually, by means of overregulation and/or making such transactions illegal.

KYC. Know your customer. Papers please, comrade. You might be a communist-terrorist-tax-evading-immigrant. You might be a criminal. Just in case, we need to know you. Who is this we?

On the other hand, you are probably just an innocent citizensubject wanting to keep as much of your money as possible. And it is your currency, right? No, it is the State’s Currency. “But I have some XMR’s,” you answer, “not State Currency.” All the more reason to know you, comrade.

Privacy? You have no right to that; the herd tells you. What are you trying to hide? Nothing? Prove it. Show us all your currency and let us decide.

Welcome to America, land of the citizen-subjects. Hey, at least we can emigrate – so long as we have paid our taxes first. Even if you hand in your citizenship-subject papers, you must still pay your exit bills, before you may emigrate, right? And they dare call this freedom? (Hey, I’m American, but America is not a place – it was an idea – in the past.)

Is it any better in the UK, Australia, Canada, or Switzerland?

Because of government pressure, the cryptocurrency innovators are beginning to give in. Or maybe they never had the guts in the first place. They are creating what amounts to “S2S” or Subject-to-subject transactions. Weak sister versions of the almost true form. Compromised crypto’s, the lot of them.

But I’m sure they work just fine.

These new S2S innovators are the compromisers. They help support the current fiat monetary systems. The highly centralized, highly controlled, inflation pushing bureaucracies.

I labeled Cardano (ADA) as S2S compromisers. But they are not alone. Ripple (XRP) is S2S compromised as well. Even Ethereum (ETH)  advises that they will comply with governmental information requests. I’m certain there are many more S2S compromisers.

Few have the tenacity to protect privacy. Legitimate privacy. Many of the cryptocurrency exchanges bow to the might of “.gov” as well.

These S2S capitulators have good people working for them, however. They have children and dreams and I do not fault them for coloring within the lines. If they are to remain at liberty, to exercise their delimited freedoms, they must bow down. No blame can be placed upon subjects working within their enclosures.

It is odd that a fluffypony will not bow, however. It requires vision and nerve to stand, virtually alone. To back a crypto that will not comply.

The same can be said of Smooth and all the developers of both coins (Monero and Aeon). To believe that the “.govs” of the world have not discovered some of their identities, is foolish. And they know it.

And don’t give me that bull about sacrifice. These men and women working behind the curtain to privatize crypto are not doing so for free. Their trade, their gain, is profit. Their potential loss is their freedom. Is this a sacrifice or a trade? Are they, in a sense…

…mutually pledging to each other, their lives, their fortunes and their sacred honor?

Private P2P is a down payment on future value few can imagine. To buy the freedoms of their children. To refuse the current call for S2S, and see what happens.

I hope these private P2P men and women, keep at it.

Here’s the audioblog along the same lines: “The P2P Question.”

If you need to convince yourself that privacy is important, buy this: “For the New Intellectual”


 

Note: As usual, the above is only an opinion. I welcome any responses. In the meantime, do not base investment decisions upon any of it. Call your banker, broker, insurance salesman and/or financial advisor, if you must.

Bitcoin: Not a Value-Producing Asset?

Bitcoin: Not a Value-Producing Asset?

Dear Cryptocurrency Readers:

It’s good to keep tabs on the big picture while hoping for the good news. But don’t short change yourself if the time comes to make a choice between regulated or unregulated cryptocurrencies. It may be better to pay the tax, than pay the fine…or worse yet, be placed in a “political” prison cell.

Think long and hard about trying to hide your crypto stash and making your escape to some foreign island after you trade a chunk of it for some local fiat, gold or silver.

Things like crypto need to be won first in the courts, in countries where that is still possible. Political representatives must carry the banner and I feel that eventually, crypto needs an anchor. A hard currency. Only then will it be able to unhinge the fiat myth we have lived under for over half a century in these United States of America.

Is not that the ultimate dream of cryptocurrency?

It made many see, for the first time, that there is a way through this monetary nightmare we call government fiat currency. If it is only a pipe dream, that dream has had a lasting impact upon the minds of many – worldwide – I will posit. And dreams drive change.

Even if cryptocurrency dies, fifty years from now, people will remember, that for a brief time, the purse strings were almost given back to their rightful owners. The people. To you and me. We were almost back in control.

I write all of this in the hopes that I am dead wrong. That cryptocurrency, as it was meant to be, does not die, but evolves and helps to remake this decaying fiat world.

In short, this is not investment advice, it’s thinking advice. Education and speculation, is better than throwing the virtual darts at the virtual dart board.

For those who highlight cryptocurrency charts, citing all the technical reasons to “buy now,” know that the problem is a fundamental one. We need to look at the creators of these cryptocurrencies, why they make them, how they will work and so on.

Fundamental analysis is a must in the cryptosphere.

According to a MarketWatch article, Warren Buffet recently remarked that he thinks coin [cryptocurrency] offerings will end badly. “People get excited from big price movements, and Wall Street accommodates,” he said.

I don’t think Buffet gets it.

Buffet also advised that “You can’t value bitcoin because it’s not a value-producing asset.”

Now think on that a moment. “Not value producing.” That’s a fundamental issue, is it not?

So, it’s not a house or a farm or stocks. We know this. Buffet is not telling us anything new here, just couching it in investment terms. But remember, Buffet is also – if I can judge by his past statements – pro-big-government, pro-higher taxes for the wealthy…he’s a status quo kind of fellow. Rose colored glasses and all.

Guys like Buffet need what? They need the rules to remain “stable.” Capital gains taxes, income taxes, regulations, political support, all play into the scheme to use the system to earn more fiat money. Fiat money and other real assets, but all lubricated by a slowly crumbling (could be quickly) monetary system.

Bitcoin and company mucks up system, if they are seen as a currency replacement mechanism, say to the grand old investor types. So, they refuse to imagine the potential if such thinking requires them to start from ground zero. If it requires them to ask that burning question they refuse to hear: What is sound money? And the other one. Can we get along better without it if we pay off (buy) the bureaucrats and ask for special favors granted involuntarily, by the taxpayers?

But let’s compare.

Is digitized anything, say music, talk radio or even movies – are they value producing?

Yes, but they have an industry behind them. Singers, producers, directors, and labor unions. Companies with stock. Buildings, cars – the machinery of sight and sound.

Does bitcoin, specifically, have that same sort of structure? Or is it a bubble?

No. It has voluntary “assistance” right? Those who are willing and able to code and debug, right? There was no bitcoin creation company, as far as we know. Satoshi Nakamoto could be anyone or a group of communist sympathizers. We haven’t a clue.

Bitcoin is not an asset, in the traditional sense, only a service based upon secret codes, information exchange, shared data ledgers, miners, computers, internet use and so on. We know that bitcoin (currently) is very valuable, but subject to change, forks, political risk, clones, hackers and crowd sentiment.

Bitcoin is also subject to being replaced, at any time, by better technologies. Some new developer who can convince the world that this new bit of code is the cat’s meow.

Bitcoin is also subject to wide value fluctuations. Fluctuations, if you are risk tolerant, that can earn profits – or not.

So, bitcoin does not appear to fit any valuation model that I am aware of. Yes, it is anti-fiat, anti-capital controls, pro-personal banking, anti-inflation, anti-establishment, anti-tax, anti-status quo, and emotionally charged, probably a bit bubbly, but its asset value is, like Buffet contends – missing in action.

Is it just a numbers game?

Certainly, we are in new territory here.

Steve Wozniak of Apple fame thinks “cryptocurrency could become a better standard of financial value than gold or the U.S. dollar. Wozniak argued that Bitcoin is more stable and less prone to arbitrary supply changes.” This, according to a recent piece at Futurism.com.

If Wozniak does think, as the article suggests, that bitcoin is better than gold or the U.S. Dollar, he should qualify that statement.

Currently, the U.S. fiat dollar works, but into the future?

Gold? Well, it’s not used as legal tender in the United States in any huge way.

So, yes, right now, bitcoin appears to have a lot of advantages, except for what the article mentioned:  stability. You can’t depend on it.

Wozniak is a computer guy, not an economist. So, I would lean more toward the investor extraordinaire side – be a little Buffet-ish. But does not the truth land somewhere in the middle?

What seems to support Buffet’s words and may spell bad news for bitcoin and cryptocurrencies in general (maybe not Ripple or Stellar Lumens) is the recent news from AMD. AMD sells GPU’s which can be used for cryptocurrency mining. They are projecting losses now.

Does that mean cryptocurrency miners are no longer as interested as they once were? Or is it as this article explains, that the centralization of mining is requiring more than GPU’s? ASIC farms and other specialized processes, in China? Could it be a larger move away from mining altogether? A shift to Proof-of-Stake coins?

And then there’s the Russian angle to consider. Motherboard advises that the Russian Government is finally – if we can believe it – regulating these crowd funding mechanisms, i.e., cryptocurrencies. Taxation is coming to a miner near you – in Moscow. Wow, even America is past that part. Well, except for the registration part. “Papers please, Comrade!”

But what are the Russians really doing? Invading. It’s what aggressive regimes do. Take over other “countries.” This one is called “The Virtual Currency Country.” Dear Comrades, bend over and take it — be invaded.

Hey, don’t worry, America will probably join you soon. They will be a bit more coy about it, however. The bankers will hide behind the regulatory agencies, I’ll assert. Pushing them all the while to “register” all cryptocurrency related organizations, companies, and exchanges. Make them fall in line or suffer the fines, taxes and yes — Jail House Rock.

Just as Jamie Dimon hinted – arrests might be next. Oh, but they love the blockchain. Go figure. Wanna bet the bankers do not want a public blockchain — like bitcoin?

What does this tell you? That the banking industry will soon use the blockchain technology and then seek to outlaw all private cryptocurrencies? To monopolize cryptocurrency like they do fiat? With the blessing of the FED of course. Or maybe they will use a ready-made solution. Ripple? Hmmm.

Think again. Banking is about responsibility and control over the owned (official)  currency. They will want their own crypto’s. Crypto’s identified to their banks in some way. Ones that they control absolutely, if possible. If not, at least a Fedcoin, but then why would we need banks at all then?

Do you really think banks will outsource cash to Ripple? No, Ripple will be used to lubricate international transfers, until the banks figure out a cheaper system. A more profitable exchange mechanism.

If all this bad news continues, my concern is which non-establishment, unregulated cryptocurrency or system can survive and profit – long term – in such an environment? Will the ones which sought to comply with regulations early on survive in an anti-bitcoin world? Ones like Ripple? Ethereum? Stellar Lumens? How about Cardano?

And does this lack of backbone, a crypto’s desire to please the masters, only help to destroy a movement with the original intent to halt the devaluation of fiat currencies altogether? To replace the corrupt system, from the computer up?

Maybe so, but I still think that for now, one can profit if there are any major shifts from the dream – a private decentralized cryptocurrency – to the reality – soon to come “government regulated crypto.”

Not necessarily “state” created crypto, however. That wouldn’t be any different than the current fiat mess we are in now. In fact, it would be much worse. Every bit of your money could be tracked.

Welcome to a Brave New World.

That’s all for now.

In the meantime, you might want to store some coin on a Trezor.

Jack Shorebird


 

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