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% 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