What Does the Rise in Crypto Currencies Mean?


by Brad Sebion, SGT Report:
Edward Karr was a guest on the Frank Curzio podcast. The discussion at hand was Bitcoin and the rest of the crypto currencies. Mr. Karr stated the rise of the crypto currencies is the canary in the coal mine for a major economic event to unfold in the future. Edward stated the rise in Bitcoin was a put on the Chinese economy. Wealthy Chinese people have bid up other assets like Vancouver real estate as well as many crypto currencies.

Japan and Korea have put a vast amount of wealth in bitcoin and other blockchain currencies. Investors in Japan, with good reason, are nervous about the undertakings of the Bank of Japan. The BOJ owns more than 40{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of government bonds and has been buying stocks for some time. There are days where no bonds are traded in Japan. If the Japanese currency rapidly begins to lose value like in Venezuela, people holding bitcoin will maintain some form of wealth, while those holding the yen will have much less.

The block chain technology is what makes these currencies so intriguing. Mr. Karr gave the example of settling trades. It takes three trading days to transfer funds from one account and put it into ownership in another. With the rise of financial technology, these transactions will occur instantaneously.

Reggie Middleton, the creator of Veritaseum, went to Jamaica at the end of June. He presented the blockchain technology to the leaders in business and those employed in the financial industry. If Veritaseum was to be successfully implemented in a small market, companies like Euroclear, that settle trillions of dollars in transactions everyday are in trouble.
He also pointed out block chain currencies are extremely clean and transparent. That is completely opposite of how central banks, fiat money, and fractional reserve banking operate.

Frank Curzio and Edward Karr both felt governments pose a huge threat to the crypto currencies in the future. At the moment they can’t be taxed. I think there will be day where the central banks and governments are going to take a bold stance against crypto currencies. For a speculative investor this might be the time to buy.

Contrary to that opinion, Nevada is leading the way for blockchain startups to become the new Silicon Valley of block chain technology. Bill 398 was passed 41-0 to make sure local governments can’t tax or impose any other requirements that would stop blockchain use.

To hear this interview check out the June 14th edition of the Frank Curzio Show: Ep. 525:  What’s Really Moving Bitcoin?

image credit: news.bitcoin.com


  1. “Edward stated the rise in Bitcoin was a put on the Chinese economy.”
    That it may be but it is also an escape hatch for those Chinese citizens who have some wealth and want to protect it from government fiat games, such as currency devaluation. It also gives them a way to remove some of their wealth from the restrictions of the Chi-comm government. Like all other people, the Chinese yearn to be free and freeing their wealth from a restrictive police state is a great 1st step in their quest.

    • Bitcoin is also a great way to free yourself from “stacker” dunces too. They’re kind of like AR-15 maniacs…. “Only shoot an AR platform. Only own an AR platform. If you don’t shoot an AR then you’re an idiot. Everything should be an AR.”

      • You’re a moron who said that Bitcoin’s detractor is that you can’t touch it… which in your minuscule brain means that it is “not real” like all software is “not real”. Then you come on here pumping the inflationary bankers-wet-dream-shitcoin, “Ethereum”. Hey moron, last time I checked you can’t “touch” Ethereum either.

        • I wasn’t pumping ethereum. I merely pointed out how Bitcoin is outdated technology because it doesn’t scale on demand or have smart contracts.
          Plus it’s not a long term store of value.

          If you don’t HOLD it, you don’t own it!

    • That Andrew Maguire interview was excellent. Silver flash crash to 14.34 but none was bought at that level.
      Need to listen again.

      Gold trade note, Gold backed cryptocurrency, Gold goes no bid, Gold gets revalued multiples higher.

      All produce the same result… The Gold Standard.

      • They’re too stupid to understand that Bitcoin is “backed” by Bitcoin. And that if you “back” a currency with tangible items, that is called centralization. It’s also putting a big target shirt on and saying “Hey, I’m right here… come bomb me, throw me in prison and steal all my shit.”

        • And Air is backed by Air.
          But why back a currency like Bitcoin with nothing when you could back it with something that has real intrinsic value like Gold or Silver???

          At 164 to 1 Silver to Bitcoin price ratio, physical Silver is the better value. So is Wheat, Oats, Coffee, Oil, and cheap cigars.

    • That’s easy Krell… the cryptos that are “backed” (Ie, CENTRALIZED) will be worthless because the whole point of Bitcoin is that it was DECENTRALIZED.

  2. I think the rise of the “Cryptos” has any single meaning. It’s a lot of things happening.
    There are pure speculators hoping to make a lot of profit by getting in “on the ground floor”.

    There are people wanting to bypass “capital controls” (wealthy Chinese).

    There are places where the local currency is crap and alternatives are desperately needed.(Venezuela, Zimbabwe, etc)

    Some people see the Cryptos as replacing the world’s fiats with something not controlled by the central bankers (at least, that’s the wish.)

    And some, have gotten so tired of the manipulations that hold down the “price” of PM’s, it’s refreshing to see the Cryptos performing as a very free market system, rising and falling according to supply & demand.

    Cryptos are starting to really shake up the fiat world, more money is flowing into them. I think the stock markets and central bankers are getting worried. That’s a GOOD thing.
    Perhaps Cryptos are another force that will help to break down the old world order, contributing another black swan to the flock.
    And just to remind us all, is how clever people find better ways of doing things, here are some Russian gardening video examples of how to get more work done with less efforts.
    Just watch this clever MULTI function roto-tiller do a great job of POTATO planting in a short time.
    Watch a bunch of videos like this, and you’ll get a lot of ideas about how to grow enough food to feed more than just yourself.

    These guys often modify tools and machines. Some of the roto-tillers, have extended longer axles/pipes sticking out both sides, to do a wide area all at once. This extended width modification would not be legal in the west, where idiots would hurt themselves and sue the manufacturer for making a machine that didn’t have shields and guards that extend all the way out.

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