Crypto currency and the future!
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Crypto currency and the future!

By EconPete following x   2018 Jan 13, 2:10pm 377 views   4 comments   watch   sfw   quote     share    

The Glass-Steagle law was enacted during the Great Depression to separate sectors of the banking industry from insurance and investment. The repeal of that law allowed for the housing and stock market bubble of 2008. This is because when you give control of all aspects of finance to one central group they have no incentive to not keep, almost unknowingly, degrading integrity to bend to their specific interests. When there were separate actors all with self interest in keeping the checks in balance there was integrity. When one group can insure to ensure investment returns while providing the foundation of the next round of phony loans to justify the previous shitty loans; you have a Ponzi scheme.
That my friends is where we are today. Instead of allowing the economy to purge itself of faulty investment created through extremely poor oversight and government direction, the government and federal reserve doubled down, twice! We currently have a stock market and housing market that reflects nothing close to reality. Baby boomers have their entire life savings built on a complete fraud and they cannot see the truth. They believe the "experts" who actually originated this mess 20 years ago. They call crypto's beanie baby's. Unfortunately, the main Ponzi scheme I see here is their Socialistic Security that cannot be paid back. At what point do the experts warning against fraud and insecurity become the ones perpetuating it.
That is the main question of crypto currency; at what stage in the game are we, which side do you trust? The young and old obviously have extremely different theories. Here you have a group of the comfortable establishment who claim all is well as they benefit from all the centralization of power. Then you have a group of hungry, younger people following the establishment's instructions and getting nowhere based on the old rules of the game. They See they are being directed by the old into the clearly failed path to ensure the old's Ponzi scheme like existence will continue its perpetuation. Yet, presumably, they have the choice to reject McMansions, having kids, and materialism. Heck, they could even reject the basis on which the foundation of the old's existence is dependent...... They could question the integrity of fiat!
In a nutshell that is the future of the crypto currency market, unless the establishment starts enacting force to pervert the freedom of choice to ensure their continued dictatorship of the youth. Phony wars, the drug war, and criminality of things like gold have all been used before to dictate behavior. Will Bitcoin be banned when its potential is being realized? That is when you will really NEED to own it!
1   anonymous   ignore (null)   2018 Jan 13, 6:10pm   ↑ like (0)   ↓ dislike (0)   quote        

Can you fill in some details as to how this would unfold ?

When Obama was President gun sales went through the roof. Now with Trump President it's bitcoin. I assume fear is the driver in both cases, but can you detail one hypothetical scenario you're imagining ?
2   EconPete   ignore (2)   2018 Jan 13, 6:20pm   ↑ like (1)   ↓ dislike (0)   quote        

anon_08dee says
Can you fill in some details as to how this would unfold ?

The changes that may potentially occur over the next few decades have nothing to do with trump Obama politics. It has to do with the underlying fundamentals on which our economy is based. Although, a certain party is quick to lessen the long term financial security of the country. The choice to not back our currency in any hard asset is over 50 years old. The extreme mismanagement of Wall Street and the housing market will precipitate the coming insecurity. How the central banks decide to compete with crypto's will determine if there is massive devaluations in "assets" or hyper inflation. They may even try to ban them like they did gold in the Great Depression.
3   anonymous   ignore (null)   2018 Jan 14, 11:52am   ↑ like (0)   ↓ dislike (0)   quote        

EconPete says
How the central banks decide to compete with crypto's will determine if there is massive devaluations in "assets" or hyper inflation.

This seems to assume cryptocurrencies take over globally as peoples temporary store of value. I was looking for a more detailed hypothetical scenario. I should read more about it, but it's hard to see.

Fiat currencies will have had to fail on a global scale.

AS for the " massive devaluations in "assets" or hyper inflation" am I to assume you mean valuations in dollars, gold, bitcoin ?

Because assets have already been experiencing rather EXTREME devaluation in bitcoin, which the bitcoin folks predict will continue.
4   Feux Follets   ignore (0)   2018 Mar 13, 2:15am   ↑ like (0)   ↓ dislike (0)   quote        

China crypto national currency ‘inevitable’. Digital currency will eventually replace coins and notes, says PBOC governor Zhou.

Speaking at the National People’s Congress, Zhou said digital currency will eventually replace coins and notes but, intriguingly, this might not be in the form of crypto-currency and could utilize another form of technological innovation

There have been all sorts of rumors about various different national cryptos but to date, Venezuela is the only country to push ahead.

The “Petro” is backed by the country’s oil reserves and pre-sales have, according to President Nicolas Maduro, raised $5 billion in just a few weeks. But its launch has certainly been controversial, with Maduro saying the Petro will help bypass American financial sanctions, the US Treasury warning that it may violate sanctions and the Venezuela opposition arguing the coin is actually illegal.

China, of course, wants no such drama. Zhou says Beijing will move cautiously in its search for a coin that is efficient, cost-effective and secure.

After reportedly running successful trials in 2017, China looked set to be the first country to deploy a digital currency but news of the program disappeared amid a range of widespread crypto crackdowns.

Zhou confirmed that the tests will continue this year but so too will the clampdowns. Nothing, said Zhou, can be allowed to “conflict with the current financial order.”

Few would doubt his words.

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