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Blockchain Revolution: from the internet of information to the internet of value


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But why not create a misalignment between supply and demand across time!  We got the FED committed to infinite liquidity, committed to low (possibly negative even) interest rates, and even committed to inflation!  The longer this goes on, the greater will be the adjustment to realign output with demand to return the economy to sustainable economic growth with rising standards of living.   Negative rates just create misalignment between demand and output.  No bueno!

At least there's hope though!  35,000 publicly traded companies carry a total of 5 TRILLION in spare cash (Apple anyone?).  It's literally their fiduciary responsibility to preserve the purchasing power of their moolah.  It took MicroStrategy (MSTR) 6 months to authorize and complete their purchase of 425 Million USD of Bitcoin.  So if other boardrooms take 9-12 months to approve and buy Bitcoin with just 1% of that 5T cash war chest, Bitcoins market cap would go to 2 Trillion.    

A boy can dream!

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On 4/18/2020 at 3:45 AM, kneehighs said:

Enter, global financial reset.  

Retail Banks go bust.

Central Banks replace them.  If consumers had 1K in retail banks, Central Bank gives consumer a new wallet (bet smart phone is required) with 1K of fresh "Fed Coins" in it.  So consumer loses no money.

It will be Digitally based since paper money can pass COVID or other mutations of viruses. 

Well wouldn't you know. CEO of Federal Reserve Bank of Cleveland, Mester, "Legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments"

https://www.clevelandfed.org/en/newsroom-and-events/speeches/sp-20200923-payments-and-the-pandemic.aspx

 

Screen Shot 2020-09-23 at 9.27.50 AM.png

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  • 2 weeks later...

The last week has been incredibly tumultuous for crypto markets.

150 Million Dollars were hacked from an Asian Exchange, KuCoin.

BitMex, the leading derivatives platform for crypto globally was prosecuted by the US Government

President Trump tested Positive for COVID 19.

In all this, one would expect another March Black Swan capitulation sell off of 30%+

Yet the crypto market has barely even slumped 4%

This means demand for crypto is so high right now, it's able to keep price up despite all the tragic news.

Long term bullish.  Mid term bullish.  Short term neutral.

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John McAfee gets prosecuted

Uncertainty about new US stimulus.  Uncertainty about US election outcome.  

UK bans derivatives trading for crypto (stupid move considering futures are a key part of risk management.  Why not ban all futures?)

Yet Jack Dorsey CEO of Square invests 50 Million of Square's treasury into Bitcoin and the crypto market goes UP.

Considering The global reserve currency (USD), The global reserve asset (US Treasury), and Euro will be devalued even more in the coming few years, Bitcoin and precious metals (Silver and Gold mostly) provide the best Risk to Reward ratio among any asset class in existence

 

 

Edited by kneehighs

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https://www.reuters.com/article/us-britain-boe-bailey-bitcoin/boes-bailey-sees-little-intrinsic-value-in-bitcoin-idUSKBN26X2AH

Bailey still promoting a false narrative that bitcoin needs to have intrinsic value to act as a medium of exchange

Unless it's a tree to live in, or a fruit to eat, or an orange to squeeze juice from, a commodity does not have true intrinsic value. 

And bitcoin is a scarce digital commodity.  

A paper euro, pound or dollar bill either derives it's value from Government laws and military force or by social consensus.  It's value is purely extrinsic.

You could even make the argument that a Venezuelan Bolivar has more intrinsic value than a USD b/c you can at least use the paper to wipe up a mess on a floor.  

 

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I agree with that.  It's about a difference between buying power and intrinsic value.  There is a difference.

Some creative Venezuelans were making bags from worthless notes.  I'd trade for that!

https://time.com/5265941/venezuelan-migrants-bolivares-banknotes/

 

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16 minutes ago, Shyheels said:

If they could reach a market with those bags they could probably sell them for hard currency as curios

As long the Curio central bank covid relief policy doesn't devalue their curios, they should be okay!

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On 4/18/2020 at 3:45 AM, kneehighs said:

Retail Banks will get bailed out before the people???  After 2008???  And trillions being printed to cover COVID/quarantine demand shocks? 

Enter, global financial reset.  

Retail Banks go bust.

Central Banks replace them.  If consumers had 1K in retail banks, Central Bank gives consumer a new wallet (bet smart phone is required) with 1K of fresh "Fed Coins" in it.  So consumer loses no money.

It will be Digitally based since paper money can pass COVID or other mutations of viruses.  

Imagine the surveillance that could come with the new Fed Coin?  No vaccine?  No coins.  Coins could be issued with expiration dates programmed to be spent in segments of economy that are suffering.  

The IMF is calling for a 

A NEW BRETTON WOODS MOMENT (https://www.imf.org/en/News/Articles/2020/10/15/sp101520-a-new-bretton-woods-moment)

Bretton Woods is where the US Dollar became the Global Reserve Currency back in 1944.  

Central Bank digital currencies 3-5 years from now at scale. 

They'll all work together at debasing the entire global fiat currency system.  

For a 1000 years + now, people have been able to preserve their buying power by holding Gold. 

The new gold will be Bitcoin.  

Stay stuck in the stone ages at your own peril.

 

 

Edited by kneehighs

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10 hours ago, Shyheels said:

What's wrong with the old gold? It's durable, has many practical uses, has great brand recognition - everyone's heard of it - a long history, universal acceptance and it's pretty...

It's a commodity with limited supply.  I guess it's too stable and boring for those who want to get rich quickly 😛  

Edited by p1ng74
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11 hours ago, Shyheels said:

What's wrong with the old gold? It's durable, has many practical uses, has great brand recognition - everyone's heard of it - a long history, universal acceptance and it's pretty...

Nothing wrong with gold at all.  I've said it many times in past posts.  If demand for Gold goes up, it's supply will increase as miners will do more work.  Unlike Gold, Bitcoin's total supply can be independenlty audited at anytime by anyone.  https://www.blockchain.com/explorer  And unlike Gold, Bitcoin's supply is fixed.

1 hour ago, p1ng74 said:

It's a commodity with limited supply.  I guess it's too stable and boring for those who want to get rich quickly 😛  

What's wrong with getting rich quickly if you know how to manage risk?  It took Gold 3259 days, or 107 months, or almost 9 years to break it's old All Time High established in September of 2011.  Plus, Gold dropped 45% in nominal value during that period.

 

 

 

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Risk management bullet point?  If Trump contests the election, be prepared for sharp sell offs in risk assets (risk off environment).  

Edited by kneehighs

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1 hour ago, kneehighs said:

Risk management bullet point?  If Trump contests the election, be prepared for sharp sell offs in risk assets (risk off environment).  

I'm thinking we are gonna see this sell off regardless. I'm inclined to think Novemer to February are going to be rough on the markets and the overall economy.

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Look at what's happening in Europe and the Midwest. Cases are growing and it only going to get worst. People may be fooled by a mild case, but the real issues will come in 5 10 15 years from now when they find out that some organ/tissue was scared. Maybe they will be sterile, maybe they will have a lung problem.

It going to be a long rough winter!

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On 7/10/2020 at 5:57 PM, kneehighs said:

In my opinion, a New World Order (New World Money Paradigm) is coming within the decade.  The Dutch Guilder wasn't the global reserve forever.  Neither was the British Pound.  And if you measure the time between major events in the US, an average human life cycle of about 80 years separates them all:

American Revolution (excess taxation)--->human life cycle

Civil War (money printing to finance war)-->human lifecycle

Great Depression/WW2/Bretton Woods [Bretton Woods is where the US Dollar became the global reserve currency]-->human life cycle

COVID-19/2020

I hope everyone is paying attention here.  Your buying power is at risk of being eaten alive by the coming Central Bank Digital Currency movement.

Central Bank Digital Currencies are quickly becoming the norm of international innovation.  Instead of monetizing debt on government's balance sheets, money will literally just be printed at the press of a button.  Instead of waiting for opposing political parties to legislate stimulus for the people, Central Banks can bypass lengthy bureaucratic red tape, press a button, and like magic, a new stimulus deposits into a recipients mobile phone app.  China is way ahead of the US in structuring theirs. China could say to all foreign corporations, "if you want access to our economy, you must do business in our Central Bank Digital Currency"   

Government surveillance of spending will be unprecedented.  Behavioral economics, not the free market economy,  will play a massive role in Central Bank monetary policy decisions.  If Trump wins, I am prepared for a more nationalistic US "Fed Coin".  If Biden wins, I am prepared for a more internationally cooperative Central Bank Digital Currency, pegged to a basket of global currencies, like what The International Monetary Fund called for with a new Bretton Woods.

Cryptocurrency may very well play a role in undermining Central Bank Digital Currency surveillance and control mechanisms.  If the West takes the position that economic opportunity is best served by a decentralized free market, that traditional banks can build layers of service on top of decentralized financial blockchains, that the true freedom that symoblizes Western liberties is best served by decentralized foundations--then there's hope for the West to come out on top in this new era.  But if traditional banks get greedy and want to lobby against the decentralized financial community, they might be putting the US global financial leadership at risk.  

This will unfold in the 2020's.  

 

 

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  • 1 year later...

Coming in to update this thread.

I haven't worked in over a year. 

Bought BTC at 5K-10K. Sold at 28K and 55K

Bought ETH at 150-200. Sold at 3.3K

Bought another alt coin at $150 USD in 12/19.  Sold for 10.5K USD in August 2021

Haven't worked in a year.  And still got suites in Positano, private boat tours in Lake Como, and despite what everyone thinks now about crypto being dead again, I'm living my best life ever now. 

For what it's worth, I think until the US Federal Reserve pivots their position on Quantitative Tightening *and* inflation peaks, it'll be hard to call a broader market bottom.  For the short term, I believe Bitcoin may have achieved a "local" bottom.  This is not a broader generational bottom. So I'm still all cash for now.

I look forward to selling at projected market peak in Q4 2024.

 

On 4/18/2020 at 9:45 AM, kneehighs said:

Central Banks replace them.  If consumers had 1K in retail banks, Central Bank gives consumer a new wallet (bet smart phone is required) with 1K of fresh "Fed Coins" in it.  So consumer loses no money.

It will be Digitally based since paper money can pass COVID or other mutations of viruses.  

Imagine the surveillance that could come with the new Fed Coin?  No vaccine?  No coins.  Coins could be issued with expiration dates programmed to be spent in segments of economy that are suffering.  

Watch this video with Jay Powell, President of the US Federal Reserve, touching upon Central Bank Digital Currencies in the US. 

 

Edited by kneehighs
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