You are viewing a single comment's thread from:

RE: Funds are Safu! #Monero. Oops! Nothing is Safu.

in #life2 months ago

I realized a long time ago that lucky is what incompetent people called the competent. When folks take the time to understand the intricacies of a cryptocurrency they are better able to make plans and set goals regarding how best to invest in it, or if it's even for them.

The whales on Hive get called lucky a lot. Some of them were able to mine up a stake on Steem when it was first issued, and it's easy to call them lucky for being there at the right time. But that wasn't all there was to getting staked, because they had to be attentive to the market, dive into the method of mining Steem, and invest in the equipment, or just the time it took, to do the mining. They prepared and worked to get that stake. It didn't fall off a rainbow into their account.

The owners of the network hardware the internet uses didn't get that by happenstance either, and the hard work and understanding that enabled them to acquire it will also help them make sure they keep it. They don't run their businesses in vacuum either, but in an ecosystem of regulators, service providers, and financiers that enable them to acquire upgrades, do repairs and maintenance, and undertake all the expenditures that are necessary to run businesses. They have ongoing relationships with their banks, and the situation of many banks today is very tenuous. A lot of banks invested in treasuries when interest rates were low because they were able to pocket the difference between what they paid their customers and what the Treasuries yielded. But when interest rates went up their assets lost value. As yields go up, the price of treasuries goes down. Suddenly they had more liabilities than assets.

My understanding is that basically all the banks in the world are in that position today. Banks that hang a little too far over that edge of insolvency are going down regularly. We hear about another one every week, it seems. At the head of that pack are central banks, and it seems all of them are proposing CBDC's, testing CBDC's, or are preparing to do so. In the event that more instability pushes a lot of banks over the edge of insolvency at once, they will have to consider moving entirely to CBDC's, if that will prevent a global economic collapse. Frankly I'm not particularly confident banks are above manipulating markets in order to be able to claim they didn't have a choice about whether to do so or not. They do seem to hunger so for that additional power CBDC's gives issuers than ordinary currencies do.

Lucky folks will have given this all thought before these events happen, and will be prepared with investments that can't be held hostage or used to extort them into exchanging their crypto for whatever CBDC their local central bank is forcing them to accept and use instead. The owners of the hardware that cryptocurrencies are transmitted on are pretty likely to do whatever the banks need them to do to keep the global monetary system working, even if that means not allowing transaction data for cryptocurrencies to be transmitted on their hardware.

I hope you are as lucky as can be.

Thanks!