The Bitcoinization of Zimbabwe

After scrapping the national currency in 2009 when its inflation rate soared to an unbelievable 89 sextillion percent, Zimbabwe turned to foreign currencies … now, the African country is facing an unprecedented cash crunch leaving many to search for a solution.
At the end of 2016, Zimbabwe’s central bank began issuing “bond notes,” or “bollars,” a paper currency-like note officially carrying the same value as the U.S. dollar. Backed by a loan of US$200 million from the African Import Bank, the notes were created in an attempt to ease shortages of U.S. dollars and South African rand.

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World Bank President Warns [we need protection]

Speaking with CNBC, Jim Yong Kim said that the technology is “something everyone is excited about” – a statement that he followed up with a cautionary argument about cryptocurrencies.

“[B]lockchain technology is something that everyone is excited about, but we have to remember that bitcoin is one of the very few instances. And the other times when blockchain was used they were basically Ponzi schemes, so it’s very important that if we go forward with it, we’re sure that it’s not going to be used to exploit,” he told the network.

https://www.coindesk.com/world-bank-president-everyone-excited-blockchain/

Fed President Admits: [We’re Shitting Ourselves!]

James Bullard, St. Louis Fed President, is the latest old banker to ring an alarm bell of sorts stating in a fairly emotionally charged use of words that new inventions, such as blockchain technology, cryptocurrencies and ICOs, might “eviscerate” big banks if regulators do not do something about it.
Referring to Dodd-Frank, he said “we are fighting the last war,” before adding that growing competition from fintechs has become the “number one issue.” He says:
“We need to speed up our consideration of the fintech issues and think harder about what is the regulatory environment that is going to be appropriate. I think we have been complacent so far.
That is the battleground for the next ten years. It is not the same as the battleground for the previous ten years.”

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Why Blockchain Technology Will Eat The World.

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.

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IMF Head Foresees The End Of Banking.

By Tyler Durdan – Zero Hedge

[They are Shakin in their Boots…]

In a remarkably frank talk at a Bank of England conference, the Managing Director of the International Monetary Fund has speculated that Bitcoin and cryptocurrency have as much of a future as the Internet itself.

It could displace central banks, conventional banking, and challenge the monopoly of national monies. Christine Lagarde –a Paris native who has held her position at the IMF since 2011–says the only substantial problems with existing cryptocurrency are fixable over time.

In the long run, the technology itself can replace national monies, conventional financial intermediation, and even puts a question mark on the fractional banking model we know today.”

In a lecture that chastised her colleagues for failing to embrace the future, she warned that “Not so long ago, some experts argued that personal computers would never be adopted, and that tablets would only be used as expensive coffee trays. So I think it may not be wise to dismiss virtual currencies.”

Here are the relevant parts of her paper:

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Bitcoin Jesus – A Bitcoin Country!

Thats right you heard correctly. A Frikin Country! You know, with land, people, infrastructure..

By Amy Castor – Bitcoin Magazine
Imagine a country where you could live free without a central government telling you who to be, what to do and how to act. Roger Ver [AKA Bitcoin Jesus], does, and he is inviting people to join him on a ground level in plans for creating a libertarian utopia.

Ver, who is founding the project along with Olivier Janssens, another early Bitcoin investor, stated he has already raised $100 million, but hopes to raise plenty more. “We were planning to have an ICO, but the regulators have kind of gotten in the way of that at the moment…we are working out the details as to how people can participate directly,…Thanks to cryptocurrencies, now there is a way to fundraise for people all over the world who are interested in this. Myself and my other friends all have a fair amount of capital now because of cryptocurrency. Dying with a pile of money isn’t any fun, so let’s make the world a better place”.
                                                                              Blockchain Government?
“….instead of laws, there will be guidelines similar to what someone might agree to before joining a condominium homeowner’s association. Everybody can do whatever they want within the guidelines, and they will be agreeing to the guidelines by the time they purchase in. There will not be a government. It will all be private institutions and private organizations,”

The idea is to purchase land from a government that will allow sovereign behavior. “…I think the main answer is there isn’t going to be some centralized institution imposing these rules. That is what we are trying to escape.” He also emphasized that there would be no taxes. People would need to raise money for roads and other projects on their own.
https://bitcoinmagazine.com/articles/interview-roger-ver-his-plans-start-new-libertarian-country/

 

An Insider’s View Of The Bitcoinization Of Venezuela

By Tyler Durden – Zero Hedge
“Venezuela was one of the richest per-capita nations in the world… but now, hyperinflation is a very difficult thing to understand until you have to buy lunch…. we are starting to see in Venezuela, the first bitcoinization of a sovereign state.”

..as oil prices continued their descent and Maduro’s mismanagement of the country’s economy intensified, Venezuelans chose a new way to protect themselves financially…”Bitcoin is a way of rebelling against the system.”

The Venezuelan government began to crack down on the Bitcoin community, with police extorting citizens for “misusing electricity” or undermining the country’s economy. With the collapse of the economy, Venezuelans are running out of options. Bitcoin could come as a saving grace to many people. It has kept food on the tables of families, helped Venezuelans escape the distraught nation, and acted as a voice of rebellion against the oppressive government. But how Maduro’s regime will proceed remains to be seen.
http://www.zerohedge.com/news/2017-09-24/insiders-view-bitcoinization-venezuela

Why is this happening?

Take a look at this chart.

It looks like the growth curve of some Cryptocurrency right?

It is actually the growth curve of the Venezuelan central bank’s balance sheet! (Thats not GOOD growth BTW).

“This chart is really amazing to see– the Venezuelan central bank’s balance sheet literally TRIPLED in a SINGLE MONTH between April and May of this year…They keep printing more and more money, to the point that the currency has become totally worthless…

Chalk up another victory for socialism and central planning”.
https://www.sovereignman.com/trends/this-is-what-100-buys-you-in-venezuela-22459/

The ‘Black’/Free Market will rise in direct proportion to the inefficiencies of the planned market.

I’m betting that as more and more Central Banks begin to display such ‘growth’ in their balance sheets – we will see similar, and proportionally, corresponding (real) growth in Cryptocurrencies.

R.I.P. US Dollar

By Jim Rickards – The Daily Reckoning.

The Death of the Dollar has been a long-time prediction of mine…Let’s dig in to what’s going on.

  • R.I.P. US dollar

In my 2014 book, The Death of Money, I laid out the case for the demise of the US dollar as the world’s leading reserve currency, and its replacement with one of two leading contenders – gold or the IMF’s special drawing rights, SDRs.

I expected this process to begin gradually and then accelerate to a sudden climax and possible monetary chaos.

Now in 2017, my forecast is playing out even faster than I expected…

This article describes how China, Russia, and Iran are coordinating a new international monetary order that does not involve US dollars.

It has several parts, which together spell dollar doom.

The first part is that China will buy oil from Russia and Iran in exchange for yuan.

The yuan is not a major reserve currency so it’s not an especially attractive asset for Russia or Iran to hold. China solves that problem by offering to convert yuan into gold on a spot basis on the Shanghai gold exchange.

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The War on the US Dollar Could Crash Stocks

By Jim Rickards – The Daily Reckoning.

Over the last couple of years I’ve been all over TV…from Fox News to CNBC, CNN and Bloomberg.

I’ve been telling our fellow private investors all over the world, the US to the UK to Australia, that the financial global elite is planning to issue their own globalist currency called special drawing rights, or SDRs.

And that those elites would use this new currency to replace the US dollar as the global reserve currency.

I’ve even written about this extensively in my best-selling books The Road to Ruin and The New Case for Gold.

I’m sure some people in the mainstream media think I’m out of line — but the United Nations and the International Monetary Fund (IMF) have both confirmed this plan to replace the US dollar is real.

I’ve made this warning many times, but it seems to be falling on deaf ears. That’s why I’m writing directly to you.

Here’s an example that the US dollar is under attack, right in front of our eyes:

The UN said we need ‘a new global reserve system…that no longer relies on the United States dollar as the single major reserve currency.’

And the IMF admitted they want to make ‘the special drawing right (SDR) the principal reserve asset in the [International Monetary System].’

More recently, the IMF advanced their plan by helping private institutions, such as the UK’s Standard Chartered Bank, issue bonds in SDRs.

Although our mainstream media ignored this major event, the UK media reported:

This is all happening.

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Bitcoins, Tulips, and the Straw Man

 

 

By Sam Volkering – Money Morning.

There is a lot of ‘grave dancing’ going on.

Earlier this week bitcoin and ethereum prices were in freefall. The crypto-cynics were rejoicing. From highs of US$5,000 and US$400 respectively prices ‘plummeted’ to US$4,000 and US$300.

Why?

Well partly due to psychological resistance at those high values. And part in response to a global crackdown on cryptocurrency by governments. In my view, it’s quite likely automated trading had a hand in it all too. The big question is, should you worry?

To put it simply, no.

This is affectionately known as ‘tree shaking’. It’s part of the crypto game, to see who will fall from the tree and who’s going to stay up there. Remember, this is a long term financial revolution. It’s not about short term gain.

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