CRYPTO’S FED FUTURE: A PREDICTION 11 YEARS AGO IS NOW MAINSTREAM ( Over the long

CRYPTO’S FED FUTURE: A PREDICTION 11 YEARS AGO IS NOW MAINSTREAM
( Over the long term, I get it right – a lot. 😉 )
I made this point in around 2012 when libertarians asked me to disambiguate cryptocurrency and predict its future.

Peter Zeihan, (@PeterZeihan), who is now mainstream, makes the same point: that at zero cost per transaction, the fed can cut out the middleman in all of finance and banking, and deprive crypto of its income potential as other than a long-term store of value and as such a cheap gold substitute (at high enough volume). Though I am not discounting the crypto ledger.

And further, eventually, the fed can directly access accounts, and eventually use the statistics to offer specific-use credit, or even direct liquidity, even providing banking to the unfortunate ‘unbanked’ masses, bypassing all POSSIBLE attempts to make money on consumers – forcing all capital into business investment and depriving capital of the opportunity for rent-seeking on consumer income – effectively correcting the financial sector.

However, I am a little more pessimistic. Why? Because I can’t think of a reason why the fed and treasury wouldn’t combine, and then mandate all crypto be converted to fed-coins within 30 days at the current day’s market price, and then prohibit all competing crypto. Because I can guarantee you that day will come.

Will it require acts of Congress? Sure. Will Congress be able to walk away from the combination of gutting the financial sector’s influence on the State, and the windfall of credit capacity and interest income that such ‘nationalization’ would offer? Of course, Congress will vote for it. They’d be insane not to.

Crypto is a token money substitute produced from divisible shares in the crypto network. It’s a token. That’s all. FedCoin or whatever it’s called will be insured by the insurer of last resort, and have zero transaction fees. Yes it will be a token. Yes the network is technically fragile. Yes we should always maintain physical currency. And yes precious metal weights are always the money of last resort.

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