The Dark Ages of Banking & The Crypto Reformation

 In ancient times, the intermediary of control was the proper understanding of astronomy for prosperous agriculture and consequently, the perceived divinity of individuals with a connection to the ‘heavens’. This slowly transformed into an intermediary of mythology and subsequently, the type of dogmatic religious centralization that destroyed the Serapeum and Library of Alexandria.

Eventually, religious dogma began to fail and monetary machinations began to substitute its central authority. The debasement of precious metals, which greatly contributed to the fall of Rome, is an example of these type of machinations and the danger of their centralization.

 Business Insider

 

The Age of Reason freed us from the central authority of the church but the banking system was already patiently waiting to become the be-all-end-all of intermediary control. The banking system became more centralized over time, and eventually, most currencies were no longer backed by precious metals. To be fair, there are major issues with gold-backed currencies and that’s why Ben Bernanke wasn’t necessarily wrong when he said gold isn’t money when Ron Paul infamously asked. Ron Paul isn’t wrong either, the printing of money out of ‘thin air’ is a problem. We need something of more substance but with easy circulation, valueless fiat will not suffice as currency in the long-run.

( Recently, Ron Paul said Bitcoin could contribute to the destruction of the U.S. dollar supposing the FED causes a panic, prompting people to seek alternatives to the dollar such as Bitcoin. Paul has also commented on Bernanke’s positive outlook on cryptocurrency as money rather than gold. Ben Bernanke will be a keynote speaker at the upcoming cryptocurrency Ripple conference. )

The banking system is the ultimate centralization of power for the currency of any given nation is the necessary intermediary of manifestation and under the banking system, that fiat currency is not subject to protocol nor restricted from commodity-backing. Fiat currency can be inflated or deflated at any time. Banks dictate the value of your dollar, your purchasing power, wealth, and prosperity or lack thereof. A stable cryptocurrency, which is definitely within the realm of possibility, is the solution to that problem. Bitcoin could fail to fill that role due to scaling issues but the concept and its economic system are sound.

The Central Bank of Finland has researched the Bitcoin infrastructure, the authors of the paper have dubbed Bitcoin’s economic system ‘revolutionary’, and stated the following:

“Bitcoin is a monopoly run by a protocol, not by a managing organization. Familiar monopolies are run by managing organizations with discretion to determine and then change prices, offerings and rules. Monopolies are often regulated to prevent or at least mitigate their abuse of power.”

“Bitcoin cannot be regulated. There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts”

BIS ( Bank for International Settlements ) has also released a paper, this one is regarding the creation of Central bank cryptocurrencies. It argues in favor of their creation, citing various use cases. This is one of many papers,  one of many entities researching cryptocurrency and blockchain potential. In fact, some are actually releasing good open source variations but most are focused on privatized and centralized developments. Overall, we see a ton of research and development accumulating and yet, nothing that’s discrediting the decentralized cryptocurrencies that are already available to us today. There is no reason to assume nor any evidence to suggest the Bitcoin Core Team, for example, won’t continue to make progress.

History Repeats Itself 

 In 1440, the ‘Gutenberg’ printing press was invented. It rapidly spread across two hundred cities, eventually spreading further, printing an estimated 150–200 million volumes in the 16th century. The printing press lead to an era of mass communication, altering the structure of society. Since the printing press outpaced the capacity for individual persecution, new and revolutionary ideas crossed borders, upset religious authority, created reformation, and broke the literacy monopoly of the elite, allowing the middle class to learn and prosper. If it were not for the printing press, perhaps no Renaissance, Reformation, Age of Reason, and Scientific revolution would have occurred to lay out our modern knowledge-based economy.

The age of banking and its economic authority is staring down the barrel of reformation and like the church, it’s attempting a counter-reformation. Instead of accepting and supporting decentralized cryptocurrencies, which would free the individual from the grips of fiat intermediaries of control, big banks want to create their own centralized and privatized cryptocurrencies to maintain the status quo. Of course, some of these banking entities are seeking genuine improvement but most are only offering resistance where there should be none, clinging to their power and control as the great intermediary.

Prediction

Blockchain technology will reshape the financial system just as the last Global Trends report indicates.

 “New financial technologies — including digital currencies, applications of “blockchain” technology for transactions, and AI and big data for predictive analytics — will reshape financial services.” ( pg. 15 ) Global Trends — Paradox of Progress, National Intelligence Council, under auspices of the Office of the Director of National Intelligence

The banks that don’t introduce centralized cryptocurrencies will become dated and fail in the long-run. The ones that do probably won’t be able to before the decentralized cryptocurrency ecosystem takes root and renders it irrelevant, to begin with, except for private group or private business use.

It will be difficult for a bank or group of banks to reach a consensus on what they’re aiming for or even what blockchain variant to use. By the time major banks reach a conclusion, a single Bitcoin could be worth $100,000+. Even if centralized cryptocurrency managed to keep pace and succeed, which I doubt, it would only be a matter of time before its potential for abuse became known. I don’t think there will be a consensus among banks. Various banks will implement differing centralized cryptocurrencies that will ultimately only bolster already established decentralized cryptocurrency. Some banks will succeed, many will fail, and the ones that succeed will probably transition their roles to remain relevant.

I think it’s obvious what will happen…

Decentralized cryptocurrencies will outpace central authority no differently than the printing press outpaced the individual capacity of the central authorities of the church to persecute supposed heretics. The Dark Ages of Banking will end, the Crypto Reformation will begin. From there, we’ll shift into a new age, a new Renaissance.

Obama Urged Trump To Keep U.S. Atop International Order

In 2008, Barack Obama was photographed by Doug Mills of the New York Times with the best-selling book, The Post-American World.  It was falsely interpreted and still is, as the former president leaning toward a Muslim’s perspective of a defeated America.  In reality, it’s an analysis of the rise of other nations, especially China, and what it means for the state of geopolitics. If this was not apparent enough, the Inauguration Day Letter from Obama to Trump should make it clear.

In the Inauguration Day letter, Barack Obama urged Donald Trump to keep the U.S. atop the international order.

Second, American leadership in this world really is indispensable. It’s up to us, through action and example, to sustain the international order that’s expanded steadily since the end of the Cold War, and upon which our own wealth and safety depend.

As it stands, the U.S. is drifting into a state of post-primacy, in which China could take the reins of international order. Unfortunately, many accept this without understanding the amoral compromises of such a transition. Just look at Silicon Valley, their relations in China, and the amorality of their overreach and compromise, which they accept to stay competitive while using unintentional doublespeak, “Don’t Be Evil’.

It would be disastrous to enter a state of U.S. post-primacy. It could deal irrevocable damage to the world and Western Culture. No one’s paying attention because of the endless groans of virtue signaling pseudo-intellectuals, who protests the ‘evils’ of the U.S., which pale in comparison to Communist China and most countries, in general.

It’s revealing and indicative of the state of geopolitics, that Obama would urge Trump in this way.

FULL LETTER

Congratulations on a remarkable run. Millions have placed their hopes in you, and all of us, regardless of party, should hope for expanded prosperity and security during your tenure.

This is a unique office, without a clear blueprint for success, so I don’t know that any advice from me will be particularly helpful. Still, let me offer a few reflections from the past 8 years.

First, we’ve both been blessed, in different ways, with great good fortune. Not everyone is so lucky. It’s up to us to do everything we can (to) build more ladders of success for every child and family that’s willing to work hard.

Second, American leadership in this world really is indispensable. It’s up to us, through action and example, to sustain the international order that’s expanded steadily since the end of the Cold War, and upon which our own wealth and safety depend.

Third, we are just temporary occupants of this office. That makes us guardians of those democratic institutions and traditions — like rule of law, separation of powers, equal protection and civil liberties — that our forebears fought and bled for. Regardless of the push and pull of daily politics, it’s up to us to leave those instruments of our democracy at least as strong as we found them.

And finally, take time, in the rush of events and responsibilities, for friends and family. They’ll get you through the inevitable rough patches.

Michelle and I wish you and Melania the very best as you embark on this great adventure, and know that we stand ready to help in any ways which we can.

Good luck and Godspeed,

BO

Crypto Recovering From PBoC ICO Ban

The People’s Bank of China banned initial coin offerings and asked for an immediate halt of fundraising activity. Despite only applying to China, this rocked the crypto markets, shaking weak hands of out of crypto, only to begin a quick and predictable recovery.

For those who have been in the game long enough, this is nothing new nor is it cause for hysteria, as it has become a well-established pattern. Furthermore, it has shown that cryptocurrency has become increasingly resilient to these type of announcements.

        Established Pattern of Resiliency: Source

 

 

It’s important to understand that it’s still the wild west for cryptocurrency, it’s still relatively new and unregulated. You can’t expect it to go unregulated and there is nothing wrong with regulation, so long as the decentralized nature of cryptocurrency remains intact, and it will. These type of regulations are not a bad thing, it’s a good thing. The more legitimized and safeguarded it becomes the better.

“This is a positive move given the rapid proliferation of low quality and possibly fraudulent coin sales promising the moon,” said Emad Mostaque, London-based co-chief investment officer at Capricorn Fund Managers Ltd.

“There is tremendous value in the model but we need to see more separation of high quality, ethical offerings versus those seeking to circumvent securities law for a quick buck.”

In regard to ICOs, this was a legitimate concern that had to be addressed. It’s a bad idea to allow ICOs to go unregulated, a lot of people will get burnt bad and it would only reflect poorly upon cryptocurrency. Furthermore, it’s doubtful that China won’t later accept regulated ICOs that will be of higher quality.