Here, take this box, but don't open it!
No, I said don't open it!
Curiosity killed the cat.
Good thing they have 9 lives.
You know who doesn't have nine lives?
Dinosaurs.
It's really crazy what's going on with El Salvador right now. A dozen nations seem to be talking about legalizing Bitcoin as legal tender. At first I figured El Salvador was just messing around: they wouldn't really make it a law. Then I figured that it didn't really matter if they made it a law because the world would just impose harsh sanctions on them or ignore the situation until they fell back in line.
Now there are a dozen countries talking about following this lead and standardizing Bitcoin as a legitimate currency. There's a big difference between one Podunk nation embracing Bitcoin and a dozen of them all doing it at the same time. This is especially true when considering that many of these Central/South American countries are in very close proximity to each other on a geographical level. The chances that they form a "fuck the USD" coalition is stronger than ever. Turns out being a debt-slave isn't very fun.
Have you heard about Cuba?
I guess they've finally had enough of the bullshit as well. It is so damn weird to see the dollar (Petrodollar even), the currency of my nation, come under "attack" like this and all I can do is what? Laugh about it really. Got what we deserved... and this fireworks show has seemingly just begun. Just wait for the grand finale.
These impoverished nations that have been under our boots for generations are finally waking up to the fact that the tools may exist to finally get out from under the crushing weight of debt and imperialism. Good for them. I wish them well. A win for anyone in the cryptoverse is a win for everyone in the cryptoverse.
At first I was thinking (full tinfoil hat) maybe this "legal currency" thing was just another attempt at baiting the bulls into the market before another crushing blow. Get us off our guard thinking this is all bullish when really the reaction and the impending regulations coming down would be far worse than some random country making a fluffy political move. This does give a lot more incentive for the regulators to crack down hard in every direction.
But at the same time I still believe that we are in the middle of a mega-bubble, and the timelines are still adding up perfectly. Many of these countries are talking about legalizing Bitcoin as a currency within months or near the end of the year. On top of the halving event patterns and the institutional adoption its hard to imagine we are in a bear market.
And even if we are in a bear market, so what? Many are worried about a 3-year frigid crypto winter. Where does that idea even come from? Bitcoin's bear markets are only a year long. And I already know where the bottom is: it's $20k. If we get to $20k we are immediately back in a bull market. I almost wish we would crash to that level so I could trade on margin and long this thing to the moon.
Bitcoin Doubling Curve
| 2013 | 2014 | 2015 | 2016 | 2017 |
|---|---|---|---|---|
| $100 | $200 | $400 | $800 | $1600 |
| 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| $3200 | $6400 | $12800 | $25600 | $51200 |
Like clockwork.
The fears of a bear-market are based on 5 weeks of price-action data. That's laughable: trying to predict a multi-year bear market from 5 weeks. Especially true considering we just saw six months of green in a row. We had record breaking upward action for 6 months, we are down for 5 weeks, and now everyone thinks we're in a multi-year game-of-thrones white-walker winter? Gee, what are the odds that people are just extremely emotional, greedy, and over-reacting foolishly? Pretty damn high.
Today Elon Musk said Telsa would accept Bitcoin as long as the network was using 50%+ clean energy. Jesus Christ. Who does this guy think he is? Guy is still trying to play god. There are protestors at his front gate that are sick of his manipulations. June marks the end of Q2, time to find out how much he bought/sold during all those blatant manipulations. Should be fun.
Conclusion
The box has been opened. Ideas can't be killed. Technology can't be killed. More and more people all around the world are being exposed to the concept that cryptocurrency is indeed currency. What a shocker! Who would have guessed that a technology with 'currency' in the name would one day be actually recognized as such?
The funny thing about crypto is that it is so potentially superior to fiat in almost every way (needs more liquidity). Every time crypto breaks ground, that gap will never be again widened. This is all a matter of time. Once crypto flips fiat the central bankers are done. Permanently. Just like the dinosaurs before them.
When's the last time you rode a horse to get to a neighboring city? Soon people will ask 'when's the last time you used fiat' in the exact same tone. Like it's a hilarious joke or an obviously rhetorical/sarcastic question. Except I think that crypto is even more superior to fiat than cars are to horses by an exponential margin. Eh, I know it. We are living in the future.
Posted Using LeoFinance Beta
I love to see Bitcoin and other cryptocurrencies becoming legal tinder.
It's funny... I've actually been considering going back to riding a horse. So much simpler. I still agree wholeheartedly with your crypto assessment, but you may be throwing horses under the bus. Just saying. lol
Posted Using LeoFinance Beta
Looks like you haven't read this sentence well enough (italics mine), lol:
Posted Using LeoFinance Beta
Oh, I interpreted that the opposite way! Sorry about that... I jumped the gun. Just kidding anyway (but not about getting a horse). :)
Nah, that was funny! Especially since I'm sure edicted meant it the other way around, but it didn't came out that way.
Posted Using LeoFinance Beta
It's going to take a long time before fiat goes into extinction.
I see the Dollar losing value soon though. The thought of it is scary. I feel like the US might consider a crackdown on crypto when the value begins to drop. It's not entirely impossible.
Posted Using LeoFinance Beta
It took 20 years for cars to replace horses.
By the time crypto is mainstream it will take 10 or less.
Keep working, stop paying.
Money is for greedy f**ks.
Kill conspicuous consumption with cultural fire.
Or, go on with your day as if everything is still crapitalisically craptastic?
I agree crypto is the next step, but the final destination doesn't need money, just good people.
“Your greatgreatgrandfather Dora’s chest must have been in the attic a hundred years. Find anything interesting in it?”
“Mostly junk, except for this cool looking box.”
“Whoa. A wax seal. Stamped ‘Pan’. What’s a Pan?”
“His second wife’s name. Met her in Athens.”
“Break the seal. Let’s see what’s inside.”
Yep. Not to sum up your entire blogpost in one quick quote but........yep.
Posted Using LeoFinance Beta
nais
I don't see this so much as a dollar problem as it is a banker problem. Bankers got together and came up with an inflationary system. Governments tend to want to spend more than they have, so will debase their money or go to fiat. Bankers gave them what they wanted. But, the wheels are coming off, as it always does when money is destroyed this way.
Posted Using LeoFinance Beta
To paraphrase a famous phrase from late 20th Century:
Don't hate the dollar, hate the banksPosted Using LeoFinance Beta
El Salvador is taking it a step further. They are already tapping volcano energy and building geothermal power plants with the intention of making bitcoin mining facilities that use that power.
If they manage to get that working you know as well as I do that they can use it for more than bitcoin very quickly if the need and the incentive is there.
I suspect people that are brushing off El Salvador might end up surprised by them if they actually manage to pull it off.
Bitcoin is notorious for the energy which mining for it consumes. With all the altcoins out there which are modeled after Bitcoin in this manner, there will be other altcoins needing geothermal energy sources to meet their mining needs. It's only the beginning....
Posted Using LeoFinance Beta
It's so good to see my dreams are materialising. Dreams from 2012
Posted Using LeoFinance Beta
Horses are pretty long gone where I live. I guess if your in a more rural place or a farm, then maybe. Personally I think physical cash is on its way out but I think fiat would probably be around a little bit longer.
Posted Using LeoFinance Beta
The only thing I have against using crypto as currency, is that it's finite. Which means that with every coin that falls out of existence, the rest of them gain in value. That, and the electricity/hard drive wastes are the only things that have bugged me about crypto being used as currency.
There's also the fact that currencies don't have intrinsic value. They can't. It's why the US left the gold standard and switched to our lovely debt model. Historically, tribes have used feathers, gold, rocks, seashells, etc. None of this had intrinsic value. Until Gold became useful in electronics -- and some other fields. Then it gained intrinsic value, and we had to get rid of it. Bitcoin has intrinsic value.
The reason you don't use intrinsic value for currency is, intrinsic value drives the market. Things are worth what they can be used for. And use goes up and down. Hence, why Bitcoin is never stable. It's used for more than currency. The intrinsic factor is playing with Bitcoin's market. And it's hard to buy a loaf of bread when you need 2 coins today, and 12 tomorrow.
It'd be cool to see crypto as the currency of a nation, but I think they need to make their own. Something separate from the market, whose value is based solely on social construction. Legal fiction would be a better term though.
But those are my 3 problems:
The currency is finite.
It uses a vast amount of resources to produce.
It's intrinsically valuable.
Fix those and any country should be able to use crypo for its primary source of money.
Cryptocurrency and the blockchain are here to stay. The El Salvador news has shown what direction the world will be heading to soon. Great time to be alive
To the moon!
I think bitcoin will occupy all economic landscapes holding hands with other cryptocurrencies competing for supremacy....
I know that this revolution will not stop and that the future is now, but I don't see myself dressing like this hahaha.
SOURCE
Posted Using LeoFinance Beta
The tokenization of everything will fix that to...
Happy to read about all those countries embracing Bitcoin and circumventing their way around the all mighty dollar.
I wonder how the empire of America will react...
Overall Bitcoin is an idea who's time has come.
Posted Using LeoFinance Beta
There is no empire..only a Republic..if we can keep it??
Posted Using LeoFinance Beta
I think you are underestimating developed countries and their response to mass adoption. They may impose sanctions and try to stop it, but once they realize the futility of it, they'll likely develop a control strategy even in a decentralized system. I think we are in for interesting times.
Posted Using LeoFinance Beta
Great concept post, as usual, only one topic, so much easier to follow and boy did it rain upvotes! 747! Amazing! Congratulations!
I think this style is easier to consume and possibly widens your audience...but what do I know...
As for the meat of the post, I was surprised as well, but I think your inference that this could be the first domino is correct.
The dollar is one of our most potent diplomatic weapons. We obviously have little resistance to using force when we want to on our citizens or other countries citizens, but this tool is the preferred method and has been used successfully for years to enrich our allies or enemies of our enemies. However as you suggested this potentially creates resistance to the manipulations of the dollar on a previously unheard scale.
In a historical sense, when the Middle East region climbed out of poverty, it did so paying homage to the dollar and big banks, before they were forced to evolve into more civil animals there.
This idea of using renewable energy like geothermal or hydroelectric to mine bitcoin could enrich these small countries to the point of extreme modernization and bring peace and prosperity. But that maybe idealistic, but the possibility is exciting!
Posted Using LeoFinance Beta
Something being superior does not mean it automatically wins. You don't just have to better than Fiat, you also have to beat out a government that has the power to regulate it into non-existance.
Posted Using LeoFinance Beta
Excellent article! Well written and I appreciate your views and agree with you. I also think the bull market is not over for this year and that we are in the midst of the mega-bubble. Its Metcalfe's law... networks will keep growing in utility the more people.
Posted Using LeoFinance Beta