Will Washington’s Chess Game In Syria Lead To War With NATO Ally Turkey? | Zero Hedge
FYI, BTC is at $8,814.50 as I write.
Wolf Of Wall Street Says Bitcoin Could Hit $50K Before… | News | Cointelegraph
I believe that bitcoin will retain historical value, similar to the way that a one or two letter .com address still has value, but lacks the robustness necessary for a fully convertible, safe, efficient cryptocurrency.
Any cryptocurrency must be backed by something beyond math. Although extracting gold from the ground and refining it requires energy, once the gold his mined, the energy intensity required to convert it drops exponentially. Bitcoin does not have this feature. It will always require that we have 100% access to sufficient energy. Although the same could be said for the old, in that it would be useless without electricity, gold at least has some practical values that a long string of numbers does not.
When a sovereign decides to tie a commodity (probably gold in a cryptoruble, maybe something with energy, but you run into the consumption problem unless it…nope, not gonna work long term, re: Petrodollar) to a currency unit, the whole story changes.
Russia remains my bet. She has less to lose than any of the other players.
India couldn’t pull this off without a miracle. The only chance would be a grassroots gold backed coin that overwhelmed the sclerotic bureaucracy, but that is some French revolution bullshit.
Nigeria could potentially pledge mineral and oil rights, and has some unique features that might make it possible.
China is a Potemkin economy. It is driven more by policy and diktat than any country in history, under a veneer of “capitalism “. Although it is very possible they could still default and convert everything to a gold backed cryptoyuan, such a move would suddenly turn a family treasure of a few coins into a small fortune, activating community reinvigoration, it’s doubtful it would fix the housing issue, the overcapacity, or the transition into a consumer economy in under a generation. It is possible, though!
Swiss leaders are so deep into the EU/EBC project that such a thing is unthinkable, which means that they have probably crafted backup plans. It’s just that these back up plans will be ignored. The Germans, Norwegians, and Finns have probably had a few meetings about it.
Russia has the least to lose, and the most to gain. The fact that they are settling trade contracts in gold with China, and trading oil for gold with China and Iran, and even trying to help their slower and less worldly little brother India, dying brother SAfrica and beleaguered brother Brazil, they can be banded together under a gold cryptoruble that leaves them all on somewhat equal footing.
India and China have enough gold to easily adopt it as a currency IF their leaders see the benefits, while SAfrica has enough that at renormalized prices ($8-20k/oz) to reopen many mines. Brazil has enough unexplored deposits to make it a player as well.
Even if the Russians call it the BRICScoin, and only allow verifiable gold to enter the system, they will become the richest per capita on earth. The government has 5800 tons, and individuals have just as much or more.
I wrote this 18 years ago.
When I started this site nearly 2 years ago I saw the dangerous personality traits that Mr. Trump exhibited in his public appearance. I spent hundreds of hours watching videos of a young Donald Trump transitioning into the wonderfully realized character of Donald Trump. A few of my opinions changed.
Although I have never really doubted my belief in President Trump’s sincerity when it comes to his America first policy, his incredible devotion and love for his country comes through in virtually every interview he has ever given when the topic is broached. His passion for this country, especially for the less fortunate, is obvious. He wants these low skill, goodhearted people paid well and treated well.
Unfortunately, his other ignorance of economics and the limits of government power are two egregious to ignore.
The next few months, for the next year or so, might be great if he continues to push big deficit spending. But those bills eventually come due.
He will be blamed for the crash, but it will not be his fault. Decades of federal reserve printed fake money is the root cause.
Excellent article about gold and Bitcoin.
My current thesis is that Elvira N of Central Bank of Russia has already started a project to link the ruble to a cryptocurrency, a cryptoruble, fully convertible to gold at, let’s imagine, 1 mg per ruble.
It takes 50 ruble for a dollar, and a gram of gold is worth $40, or R2,000 for a gram. It would be a shock devaluation by 200% against the dollar, but gold would quickly change that.
As a stable sovereign nation, the crypto ruble would quickly be accepted and useful worldwide. Russian experts would quickly open black-market branches where Nigerians, Vietnamese, Australians, Indians, Mexicans, and even Americans come to bring gold and exchange it for crypto ruble.
The sharp rise in export cost would be a challenge for the first year, but the massive increase in what rubles will purchase on the international market would more than make up for it.
If gold hit $12,000 oz then Russians would be sitting pretty to have the next World Reserve Currency.
What do you think?
On Dec 22, 2017, at 10:36 PM, Michael xxxxx <xx.xxx::>
Doesn’t sound like it would catch on. I don’t think gold makes sense as money at all any more now that cryptos exist. Gold to me is an insurance policy and store of value to hold. That’s about it.
Thanks for the reply.
The problem with crypto is that they, de facto, cannot become physical, except transactional. Lack of transactional ease of crypto to dollar/euro hurts adoption as currency, and it will not get better as long as Western governments depend on fiat money as their buffer for massive economic dislocation due to debt.
The problem with gold is transport and authentication. I can’t use a 1 g gold piece to pay for a pair of socks… Yet. Combining gold and crypto is the motherlode.
Sovereign certification adds cachet. The ability to transform it from crypto to physical gold helps too.
If you can combine all three, where the crypto unit is tied to physical gold guaranteed by a sovereign…I think that will become the first critical mass crypto currency.
Donald Trump has been even more horrifying as so-called leader of the free world than I even imagined possible.
Thank God Rand Paul has his ear. He is the only sane voice whispering in it. The rest of them are warmongering psychopaths.