Category: Economics, Finance, and Political Economy

I HAVE BEEN AND WILL CONTINUE TO BE CORRECT ON BITCOIN’S FUTURE
This video starts with reflections on china but ninety percent of the content explains the vulnerability of bitcoin.

Now, I’ve been ‘on message’ since something like 2012, and I know the fanboys are religious zealots. But like I said, a central bank can gut the system instantly, and they have multiple reasons to do so. In fact, as the speaker says in the video, the fact that bitcoin sucks at liquidity is the only reason Organized Crime has limited its use. There isn’t any ‘post-state’ world comging about. Instead the USA’s ‘connection’ of the world as an economy is coming about and the conflict of civilizations and the fragility of trade is returning along with the ’empires’ that failed to make the transition to federations: russia, china, and islam.

So if you think you are smart enough to ride bitcoin up, and then time your exit that’s fine. I probably could do that if I was interested. That’s because the reaction time of governments and banks is slow.

I am not anti-crypto. If it solved the ‘bankless’ problem alone I’d be thrilled with it. If it was used to force banks to hold their loans, but sell shares in them to restore their lending cycle I’d be even more thrilled. If it solved replacing the (corrupt) stock market I’d be more thrilled – it’s totally unnecessary. If it was used to create title registries for property of all sorts, I’d be thrilled with it – god knows how much a pain that is. I don’t put a lot of faith in ‘smart contracts’ but for some cases that might be good for commodity deals. And I love the idea of a traceable currency for the simple reason that it would provide solid economic data and allow the central bank and the state to move ahead of rather than behind the data. And as some of you know I’ve been a proponent of new accounting software that did the same internally – so that executives could understand how money REALLY flowed through their businesses without the human cost of creating vast numbers of complex transactions in existing accounting systems. All of those are good things.

But if you think govts are going to give up control of borrowing and liquidity you’re clearly living in an archaic delusion. And if you think that if digital currency solves the transaction speed and volume problem sufficient to compete with a central currency, that they won’t give a 30 day window to buy fedcoins before they shut down the possibility of extracting the value, you’re just ignorant and delusional.

I haven’t been wrong. I won’t be wrong. The only ‘miss’ I’ve had over the past decade is the rather ‘odd’ rescue of bitcoin by institutions – which I just didn’t expect. I understand why they’ve done it. I just also understand why they think they’ll be able to time it.

Video (wrong title, about china, ignore it)
https://t.co/ytccoGoO2b