A while back, I wrote this article about the war on cash. In it, I described how the elites, all over the world, have an utter hatred of cash, since you can use your cash without them tracking it, controlling it, or taxing it.
Take all that hatred the elites have towards cash and triple it for cryptocurrencies like bitcoin. As much as the elites hate cash, they can at least control how much is in circulation, can make certain denominations illegal whenever they like (as what just happened in India), can pay the thugs at airports to x-ray you to see if you’re carrying too much out of the country, and even confiscate it without a warrant via asset fortitude laws as part of the insane war on drugs.
Virtually none of this stuff is possible with cryptocurrencies. They exist digitally, and thus can be sent anywhere over the internet without the elites being able to do a damn thing about it. The best the elites can do is control large bitcoin exchanges within their own countries, but that’s it There are many of these exchanges and you don’t necessarily have to use the ones located in your country. Moreover, even if you do use one of these exchanges, once you use your bitcoin to buy something like ethereum, and then use the ethereum to buy some other crypto (even if it’s bitcoin again!), the elites cant do anything to see what you’re doing or stop you.
Ohhhhhh they fucking hate that.
So now, as I expected, they’re starting to crack down. China’s overloads announced they would be shutting down some exchanges in China. Jamie Dimon, CEO of JP Morgan Chase and one of the most powerful bankers in the world, made recent statements essentially saying that bitcoin and other cryptos were a scam.
In both cases, bitcoin’s price dropped sharply, but within just a few weeks it’s already climbed back up. Can they make cryptos illegal? No. I don’t see any way they can really do that, as I analyzed here. I think the elites are going to be forced to tolerate cryptos the same way right-wingers have to tolerate marijuana and left-wingers have to tolerate hundreds of millions of guns in the US. Cryptocurrencies are already too common and entrenched into the decentralized internet or any government, or even group of governments, to ban or abolish.
Instead, they can bash it and fight it every step of the way. Expect more laws, crackdowns, and negative rhetoric from the elites bashing cryptocurrencies like bitcoin in the coming months and years. The elites absolutely despise anything like this that gives private citizens more freedom.
One last thing. It’s entirely likely that the US government or Federal Reserve will eventually create their own version of the “digital dollar” to compete against cryptos like bitcoin. As a matter of fact, I think something like this is likely. There are crypto currencies that are tethered to the value of the US Dollar, like NuBits, Tether, and Realcoin, but I’m talking here about a literal digital version of the dollar. This will be controlled through Federal Reserve servers so that they can track all transactions, just like they can now through the traditional banking system.
This digital dollar might be something worthwhile to use in some day-to-day transactions from a convenience point of view (like using PayPal), but as an investment or store of any sort of wealth, it will be just as crappy as keeping your money in a bank. No thanks.
It will be interesting to see what the elites come up with next. They won’t go down without a fight.
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lous
Posted at 05:06 am, 11th October 2017fedcoin – goog it
Sean
Posted at 05:38 am, 11th October 2017peter schiff also hates them lol
but, I do agree with him that they will probably lose most of their value in the next recession. There is so much speculative money in crypto that when it pulls out there is going to be a lot of pain for those still holding…
Anon
Posted at 07:53 am, 11th October 2017I already read some signs of gov interest in cryptocurrencies, but nothing concrete so you are right there.
Personally I think cryptocurrencies are due for a big crash, esp as there recently has been a massive uptick in people/media talking about them.
Josh Igoe
Posted at 07:53 am, 11th October 2017US State Department is looking into blockchain, in fact they had an event yesterday: Blockchain@State: Distributed Ledger Technologies for Diplomacy and Development
Caleb Jones
Posted at 11:15 am, 11th October 2017He hates crypto but loves gold. I own both, so I’m covered. 🙂
I agree, but I think long-term they will still prevail.
As always, I’m a long-term investor.
Anon
Posted at 11:54 am, 13th October 2017Indeed, why do the elites hate cryptocurrencies?..
Who exactly will lose money should cryptocurrencies become commonplace, and how?
Caleb Jones
Posted at 01:15 pm, 13th October 2017To quote myself from the prior article:
The elites, particularly the left-wing ones which are in the majority all over the world, hate cash. When you conduct cash transactions, they can’t regulate them, they can’t tax them, and they can’t spy on them. Cash transactions also make it harder for the elites to restrict the sale of things they’d prefer you not to buy, such as marijuana, sugar, guns, gold, and many other things.
They hate crypto for the same reasons, in addition to the reasons I outlined in the article above.
Big bankers (like Jamie Dimon) and their corporate and political lackeys. Not only money, but power as well. (I frankly think it’s more about the power they’ll lose, not necessarily the money.)
Ascortum Tufondle
Posted at 06:11 pm, 14th October 2017Dope article Caleb,
Just looking into bitcoin at the moment, such an interesting topic.
I had an old coinbase account back when bitcoin was like USD$200 a coin, and just realised I can log back in but I set up 2 factor authentication on an old sim.
Ill have to get a new sim with the old number to see how much I have in there now.
Overnight millionaire hehe.
thanks for your cool blog.
Caleb Jones
Posted at 11:31 pm, 14th October 2017Wow. How many bitcoins did you originally purchase? Bitcoin is at $5700… you could easily have $50,000 in there now.
The New Yorker
Posted at 05:42 pm, 18th October 2017Hey Caleb,
Speaking of currencies, cash, banks, and governments, I’ve been looking up Doug Casey’s blog. You’re right. The man’s a genius, and there’s a shit ton of good stuff, but I’m getting confused with some things.
Since the events of Cyprus Bank in Greece, it’s been pretty obvious that depositing cash in Western banks is a bad idea. However,
1. Then where should I store my long term cash, cryptocurrencies and other assets? Investment Firms? Safety Deposit Boxes? Offshore Bank accounts outside the West? Could you very briefly explain why your answer/ option would be the best choice?
2. You recommended three methods of storing valuable items outside of the house in your article “Bank Safety Deposit Boxes Are No Longer Safe.” By “valuable items,” do you mean cash and assets in general?
Caleb Jones
Posted at 05:50 pm, 18th October 2017Yes.
Yes.
Only if you really want to, but not in the West.
Yes.
Investment firms are fine; don’t get too fancy. Investment firms are not banks, so they’re more or less safe.
Anything of decent monetary value. Cash, gold, silver, bitcoin paper wallets, jewelry, etc.
Wil
Posted at 07:01 pm, 19th October 2017Russia is already trying to launch their own cryptocurrency.
https://techcrunch.com/2017/10/15/russia-may-soon-issue-its-own-official-blockchain-based-currency-the-cryptoruble/