When mainstreamers start to trust the Bitcoin block chain (the anonymous cryptographic peer to peer network that stores the bitcoin transactions) Why would there not be the biggest bank run the world has ever seen ?
Bitcoin has two risks to always be aware of 1. that the protocol could be compromised in some way , and 2. that you could loose your password.
But the longer it stays up, the trust will continue to grow. This trust will reach a point where it surpasses the trust that people have in banks and governments. That is the tipping point I am talking about.
I believe fiat currencies (debt based currencies backed by many governments) are in a slow dying process. I don't think they are a useful or valid concept in our modern world. The more you understand how they truly function, the more I think you would agree with me.
Bitcoin is forcing people to look at how money works. What people find when they look is not so pretty.
Fiat currencies are inflated unpredictably, the process known as debasement. The question is, why would anyone leave their value somewhere where it gets worth less and less over time though the debasement of printing more and more money ?
The answer is that they wont, as soon as they know there is a viable alternative its over.
Also the fact (that many are unaware of) that money in the traditional Fiat system has interest due on it, is an additional form of robbery from the people in the system. I call it a form of robbery as many don't know or understand that their value is being taken from them both by this means and by that of debasement.
Traditionally the only alternative to this Fiat system was gold. But gold can not be traded easily long distance and is heavy and physical, the banks had it their way in history.
I hope its obvious to you in this light that it is only a matter of time before we shift to better systems of value representation as a replacement to the current banking system.
Fiatleak is a fun site that in real time shows the worlds fiat money moving to Bitcoin.
Taking this further, as I covered in my infostate post it is my belief that over a longer period of time 'nations' of the future will be bounded not by borders but by the use of a common crypto currencies. The features of which will embody the policies that people have already agreed on by virtue of choosing those currency 'systems'. No need to vote for one, just start using the features and coin of the 'nation' or nations! that you agree with the thinking on.
Its going to be an exciting few years if this really gets going. As confidence continues drop in the fiat system and continues to grow in block chains, the point will hit where everyone wants to get their hands on what ever is the leading set of virtual currencies, it will be a world wide phenomenon, not a local country based one.
It wont exactly be fair either.. the people who got in early will have a massive advantage. The present money system is hardly fair in this way either. But I do believe that the ability to choose which crypto currency you use, will over time start to balance this out. Add to this the understanding that wars are fought over the right to impose a currency on a society (because of the covert forms of taxation i covered that this enables), and you will better understand what I mean here.
There are some good alternatives to Bitcoin already appearing, I see these as the beginning pillars of new nations of the world. Here is a good list of next generation currencies by market cap in $ or BTC.
In the meantime I would urge everyone to at least understand how to use some crypto currency and ideally get some. The timing of when you get 'in' is a massive factor on how the new wealth will be distributed.
We are in the beginnings of the transfer of wealth into the new paradigm. One where I believe wars and inequality are much harder to exist simply because the monopoly on creating money (the thing of power that everyone used to fight over) is now gone.
Bitcoin is forcing people to look at how money works. What people find when they look is not so pretty.
Fiat currencies are inflated unpredictably, the process known as debasement. The question is, why would anyone leave their value somewhere where it gets worth less and less over time though the debasement of printing more and more money ?
The answer is that they wont, as soon as they know there is a viable alternative its over.
Also the fact (that many are unaware of) that money in the traditional Fiat system has interest due on it, is an additional form of robbery from the people in the system. I call it a form of robbery as many don't know or understand that their value is being taken from them both by this means and by that of debasement.
Traditionally the only alternative to this Fiat system was gold. But gold can not be traded easily long distance and is heavy and physical, the banks had it their way in history.
I hope its obvious to you in this light that it is only a matter of time before we shift to better systems of value representation as a replacement to the current banking system.
Fiatleak is a fun site that in real time shows the worlds fiat money moving to Bitcoin.
Its going to be an exciting few years if this really gets going. As confidence continues drop in the fiat system and continues to grow in block chains, the point will hit where everyone wants to get their hands on what ever is the leading set of virtual currencies, it will be a world wide phenomenon, not a local country based one.
It wont exactly be fair either.. the people who got in early will have a massive advantage. The present money system is hardly fair in this way either. But I do believe that the ability to choose which crypto currency you use, will over time start to balance this out. Add to this the understanding that wars are fought over the right to impose a currency on a society (because of the covert forms of taxation i covered that this enables), and you will better understand what I mean here.
There are some good alternatives to Bitcoin already appearing, I see these as the beginning pillars of new nations of the world. Here is a good list of next generation currencies by market cap in $ or BTC.
We are in the beginnings of the transfer of wealth into the new paradigm. One where I believe wars and inequality are much harder to exist simply because the monopoly on creating money (the thing of power that everyone used to fight over) is now gone.
