Why we will win the War
OR – Why Jim Rickards is Wrong!
“Bitcoin is doomed to fail” the neigh sayers …neigh.
Some critics might admit that yes Blockchain technology does look set to completely disrupt the status quo but they just cant get rid of that nagging feeling that current prices are bound to crash. For one major reason:
Governments and Central Banks (the Elites & the Bureaucrats they protect and who grow fat off the public nipple), don’t like competition.
Of course they are correct.
Open source, P2P, decentralised exchange between ourselves, without their ‘help’ is a huge threat to them. In fact it spells the end for their privileged existence.
At first they laughed at Bitcoin, if they knew what it was. However as the market cap grew bigger, and bigger, with no signs of slowing down they have been forced to take notice. It takes a little while to wrap your head around the significance of the Technology. First you notice Bitcoin, then you learn about Blockchain, then you start to gain an insight into the things it could be capable of.
They can now see the ‘threat’ looming larger. And they are not going to take it lying down.
The price, relative to gold say, indicates that Bitcoin is now well into bubble territory and when Governments crack down on this threat to the system, the bubble will pop and the price will …drop!
And crack down they will.
This fear seems to be based on sound reasoning and is one of the factors holding back the mass adoption of crypto currencies. When governments act the price drops as investors panic. Look at the effect of the recent China crack down.
However it doesn’t last. As more people gain an understanding of the technology behind Bitcoin, the internet itself and of emerging technologies which will play a role they will see how these ‘attacks’ will ultimately fail. Investors will return.
Big Brother is Loosing It’s Grip So What Can They Do About It?
So, the Decentralised Blockchain is coming for them. It’s a huge threat. What can they do about it then?
First, they will attack directly. Some Governments are already taking this approach with outright bans. Like the music industries crack down on Napster this will not work. Yes Napster no longer exists but cut the head off the snake and thousands more sharing platforms were spawned. Better and stronger.
Plus anything Governments try to ban doesn’t stop people from doing it anyway. Prohibition usually tends to backfire completely.
Then, they will attempt to hijack it. Like the Roman Empire re-branding itself as the ‘Holy’ Roman Empire. If you can’t beat em join em. It will be for our own safety of course.
The problem will be criminals, tax cheats and terrorists. People just can’t be trusted. The solution will be a Centralised Blockchain. The approved version – which they can monitor and control. Which they can use to fleece us so it’s business as usual.
In fact the publics fervour for this new tech will play right into their hands and allow the speedier introduction of many 1984 type controls over the population. Humans will be the asset on the Blockchain.
In the case of digital currency, the supply will not be finite like Bitcoin. They will need a way to inflate the supply in order to continue their ponzi scheme.
So how can they achieve the Takeover?
“Blockchain depends on critical infrastructure. I.S.P’s, servers, telco networks, the banking system and the power grid, all subject to government control”. – Jim Rickards
If criminalising it wont work, and ‘The People’ refuse to adopt their approved versions I think that attacking that “critical infrastructure” in various ways is the only real weapon they can deploy. I can’t imagine anything else. So let me address it point by point to illustrate why that will not work either.
- We Need Banks:
In order to buy crypto coins we need to go through an exchange. We need to use a bank to deposit funds. Governments, for our protection can regulate that banks are forbidden from dealing with outlawed crypto exchanges.
1. This would need to happen on a world wide scale. I don’t think they are organised enough to make this happen. Most countries have already taken a favourable stance. Although we shouldn’t assume they wont backflip as they often do.
According to Cryptocoinsnews, Bangladesh, Bolivia, Iceland and Ecuador have placed outright bans. Russia, Thailand, Vietnam, India and China have partial or banking bans which make it difficult for citizens to participate.
Many countries are not under full western imperial (World Bank/IMF), control with regards to banking systems.
They may team up to contain the threat but Govt. is a slow beast. Without entrepreneurial spirit bureaucrats cannot create change but only react to it. It would likely take years, probably decades to get legislation through on a world wide scale. I’m betting that it’ll be too late by then. That Blockchain will have overtaken them.
2. Many countries are already in financial crisis. Many officials within those governments are using Bitcoin to hedge against their own failing currencies.
3. Say my country had prevented it’s banks from dealing with Crypto Exchanges. New exchanges are appearing on an almost daily basis. How does a bank differentiate between an exchange and a ‘legitimate’ business? Like a torrent sharing site what is to stop them from shutting down today to re-appear tomorrow under a different banner?
4. Under certain circumstances I can open a bank account in another Country. (Dual Citizenship, some jurisdictions have less requirements than others. Singapore is very straightfoward).
5. I can use a VPN to make it appear as if I am in another country.
6. I can use a P2P Exchange such as Local Bitcoins or mycelium and buy Bitcoin directly from people. These are non local and operate worldwide. They do not depend on Banks or on centralised servers. They can even send the coin by text or email.
7. I can buy directly from a friend or a ‘street dealer’ who holds Bitcoin.
8. Circle.com offers an app that can be used to send fiat currency to anyone, instantly, across boarders.
9. TenX offers a debit card allowing you to spend your crypto funds as if they were fiat. The conversion happens automatically.
10. Roger Ver (A.K.A Bitcoin Jesus) is promoting an ICO financed, BlockChain based Country! With no Government at all!
11. Time is fast approaching where we wont need, or want fiat to begin with. Already I can get paid in Btc and spend in Btc. No conversion necessary. In some countries, like Venezuela that time has already arrived.
12. The time is fast approaching where Blockchain based fintech companies (like TenX and Circle above), will replace banks altogether.
- We Need Telco Networks:
Governments, could stipulate that Telcos deny service to any ISP’s breaching regulations. And/or that they deny service to Crypto Exchanges.
1. To be effective this would need to happen globally. The era where local Telco companies had us by the balls (because they controlled the infrastructure) is quickly coming to an end. By the time Australia has completed its NBN the technology will be obsolete.
2. Already the technology exists for us to connect via satellite.
Elon Musk’s SpaceX is planning to start launching a network of satellites into orbit to provide global connectivity, in two years.
Nexus Earth are planning to launch a ‘cube satellite network’ to allow for a decentralised internet.
Blockstream have announced that they are already half way there.
3. Companies like Jeeva Wireless and Sigfox are bringing connectivity through radio waves. Although it cant carry much bandwidth (focused on IOT devices), that may change. This tech exists now and is being used effectively. In any case we don’t need much bandwidth to transmit crypto currencies Other operations can be conducted with desktop software and data transmitted in bits.
4. I can still deal with a (non local) exchange or P2P network and send or receive Bitcoin via email, text message, through the post or by courier.
5. I could still deal with a friend or street dealer.
- We Need Internet Service Providers:
Governments in their wisdom may legislate that ISP’s must block the content of sites that deal with crypto currency.
1. Again, requires global action.
2. I can already buy a sim card from outside the country, activate global roaming and connect that way, though a bit cost prohibitive.
3. Mesh Networking Solutions are emerging which allow us to connect to a ‘decentralised’ internet without going through an ISP or a computer server at all! (Each node in the network becomes it’s own server). This can also work in conjunction with radio transmission. Freifunk. GuiFi.net. Zigbee.
4. I can still go direct to Individuals & Dealers.
5. Refer decentralised satellite networks such as Blockstream and Nexus Earth above.
- We Need Servers:
Governments may seek to prevent Hosting Companies who provide the servers, from hosting the websites of crypto currency exchanges.
1. Again this would need to occur world wide to be effective as I can create an Australian focused site hosted on a server in Romania for instance.
2. I can still deal directly with Individuals & Dealers
3. I can use an Open Source, Peer-to-peer, Mesh Networking solution which negates the need for a server. (See point above).
- We Need the Power Grid:
I don’t see what regulations could be placed on power Companies in order to prevent dealings in cryptos. How could they distinguish between a legit and an illegal business? Perhaps they could say that if you are operating a known Crypto Exchange Service we will cut off your power supply.
1. Again, to be effective this would need to happen globally as I can create a website to operate as an exchange from my laptop, while sitting on the beach and recharge from my car battery. As long as the hosting server in country X has a power supply.
2. The exchange can be P2P. Not existing on any central server but on the laptops of all the peers. No power grid required! Just a way to recharge all those batteries.
3. I can generate power to recharge batteries from home using fuel, solar, wind, etc.
4. Batteries are getting better and Hard Drives (Servers) are getting smaller = less power needed.
5. I can still deal directly with Individuals & Dealers
We Have Already Won!
We, the People, finally have an escape route from the control matrix. Governments can only React and when they do more solutions to give us a work around will surface. Too many entrepreaneurs are working away feverishly as we speak.
I should leave the last comment for Christine Lagarde, head of the IMF…“The only substantial problems with existing cryptocurrency are fixable over time”.