Most people are still in the dark about what BitCoin and cryptocurrencies are all about. Yet, this is one of those few times in a lifetime when markets go against institutional traditions and embrace major change. Now, only because of technology, are the masses enabled to invest in new money technology with or without permission of their governments.
In Asia and other regions of the world, BitCoin is widely accepted as a form of payment. 250,000+ merchants are in Japan where 60% of all BitCoin transactions take place. The volume of transactions worldwide is forcing tax authorities to call cryptos a “taxable currency” and attempting to tax a citizen’s global holding of data bits. One year ago, no government dared do so because they would not want to compete against such a currency or even admit it was one. Hilarious if it weren’t so telling and scary.
This is not about being a transaction currency yet in the USA. This is about an exchange of value for holding and growth of an asset. This asset is simply bits of code on a decentralized system called the “Blockchain”. It is obviously baffling people. How can a digital bit called a “currency” hold value or be traded as wide as it is without the sanction of a government or banker?
There are historical events to compare this to such as when banks introduced credit cards to be representative of cash…or the revolution of the Internet that flew so high in the 90s and made all our heads swim in technological wonder. There is nothing to exactly compare to this time of transition to new digital currencies. The printing presses will soon stop printing meaningless cash. Governments are already diminishing cash exchange by eliminating big bills so people can’t easily move or “wash” their “dirty” money. They want currencies they can box in by borders, database systems, or bank controls.
Believe us, the guys at the top of the food chain know this change is inevitable…and soon all countries will have their own “crypto” currencies tied to the “Blockchain”. Even Venezuela today announced they are issuing their “Petro” coin which at the outset is hilarious. First, these revolutionaries stole all the dollars, then they destroyed their own currency via hyperinflation and nationalization, and now they think they will convince people to trade their BitCoins for their “Petro” coins based on diminishing oil reserves and prices. Laughable and sadistic at the same time.
China and Russia have already announced launching their own cryptos. USA will be close to last since it will devastate markets to announce the end of fiat dollars as we know them. They are putting that day off as long as they can since the FED would not survive a run on the banks and devastation of the DOW. There is little money in the banks if you count cash as money. Much fewer BitCoin (none). But…any government cryptos will have to compete in valuation with global cryptos…meaning they will be forced to compete within the realities of globalization. “Making America great again” will not happen by manipulation of markets or printing more dollars.
We would say there is more reason for the BitCoin price at over $11,000 than a DOW at an all-time high while in the middle of record high P/E Ratios, more inflation than people want to admit, and continued trade deficits worldwide. The only thing keeping USA markets and GDP alive are the mega corps like Amazon, Google, Apple, etc…but they are playing off global markets and moving to cryptos quietly themselves. So, who is going to be left holding the bag of magic gold dust we call the dollar? Yep…the American taxpayer.
I really want to think I am wrong for my country’s sake…but I don’t think so.