Tuesday, November 19, 2019

10 Reasons Why Central Banks Will Miss the Cryptocurrency Renaissance

by Eugéne Etsebeth, CoinDesk:

It’s a familiar trend, one that happened in communications (internet), and that is now playing out in energy (solar), manufacturing (3D printing) and finance (cryptocurrency) – power and control are moving into the hands of the individual and away from nation states.

This has huge implications for central banks, which today enable nation states to maintain their monopolies over the issuance of notes, coins and sovereign bonds. While communications and manufacturing are not their focus, cryptocurrencies and initial coin offerings (ICOs) fall predominantly in the realm of central banks.

In these systems, central banks don’t issue legal tender. Rather, miners and algorithms now control the issuance of tokens – effectively, the money supply. Whereas previously banks were licensed to store, send and spend currency, now wallet providers and exchanges allow the same features.

The currency renaissance has arrived and central banks are studying cryptocurrencies, though some central banks are more open to change than others.

Singapore has been investigating the notion of using distributed ledger technologies to settle cross-border transactions in real time, and the Bank of England has experimented with Ripple. Central banks are even looking to build their own versions of central bank-issued digital currency (CBDC).

Even still, central banks are not well equipped to deal with the cryptocurrency renaissance.

In fact, there are 10 good reasons why most central banks will find cryptocurrencies insurmountable. Sure, a small number of forward-thinking (and acting) central banks will maintain monetary competiveness with the burgeoning cryptocurrencies and ICOs that have reared their decentralized heads.

Still, most will succumb to a mix of the following issues:

1. Workforce of the past

Central banks will need to attract and retain fresh talent that will enable them to deal with the new openness and transparency demands, as well as digital transformation and the increasingly complex global world.

2. Slow decision-making

Decision-making in central banks is like wading through treacle – decisions take months because of numerous layers of hierarchy.

Working groups need to compile voluminous and detailed documents that need to be reviewed and signed by all parties before they can proceed to the heads of departments or the deputy governors.

3. Too few technologists and innovators

Academics, economists and big-picture thinkers excel in central banks. The academics ponder on conceptual issues and the economists make interpretations from data, whereas the policy makers and regulators mull over the cause and effect of promulgating laws.

However, technologists are generally not part of the discussion when it comes to policy and economic decisions for currency.

4. Fear of experimentation

Although some central banks are engaging in experimentation, there is a fear of going from proof-of-concept to pilot phase.

This is natural, should a central bank make an error, it may turn out to be a reputation buster – and reputation is the cornerstone of central banks. There is also some trepidation that the early regulation of cryptocurrencies, and associated new technologies, may legitimize their adoption.

5. Territorial and siloed thinking

Central banks are similar to conglomerates in that they have a number of different and distinct departments that require diverse skills and outputs.

These differences make it difficult to approach a new technology and economic tour de force like cryptocurrency, because it doesn’t fit neatly into any one of the industrial-style conglomerate domains.

To highlight the conglomerate type nature of central banks, the core departments and skill sets are listed below:

  • Bank supervision: mainly supervisors and regulators who manage banking licenses and audit
  • Currency management: manufacturing and logistical planners
  • Financial markets: front, middle and back office currency and bond traders
  • National payments: a combination of regulators for payments and technical resources running the RTGS system
  • Research: mainly economists who produce statistics based reports and input into repo-rate decisions.

6. Buy versus build approach

Most central banks do not have substantial software development capability. Therefore any new project will have to buy its technology. There is an acute shortage of central bankers who can explain or use Merkle trees.

7. Stuck in the status quo

A large portion of central bankers are career central bankers, so the desire and ability to change are not incentivised. Change is often considered a threat to staff, and threats are met with jelly-like stickiness to the status quo.

8. Incumbent relationships

Banks are licensed to operate by central banks, giving them the ability to create money from customer deposits.

The central bank asks the banks to protect depositor’s hard-earned money and to serve as many customers as it can: i.e. maximizing financial inclusion. The task of banks is therefore to service a nation’s citizens at the behest of the central bank.

These relationships and licenses are expensive to buy and will not easily be changed to include new members.

Read More @ CoinDesk.com

Australia Cracks Down On Bitcoin Exchanges; Shrugs Off Banks’ “Systemic” Money-Laundering Violations

from ZeroHedge:

Australian Government Is Cracking Down On The Nonexistent Bitcoin Money-Laundering Epidemic

Australia’s largest banks can’t seem to go six months without a new scandal. In April, regulators accused Commonwealth Bank, one of the country’s largest financial institutions, of “systemic” money laundering violations, sparking an investigation into the broader banking sector, and the promise of heavy-handing civil penalties.

But instead of pursuing penalties that could lead to lasting reforms, Australia’s regulators are cracking down on bitcoin, creating a new set of guidelines that will make it more difficult for customers to trade on local cryptocurrency exchanges by mandating needless anti-money laundering controls. They’re prioritizing bitcoin over banks even though all relevant data suggest that organized criminal enterprises and terrorist groups overwhelmingly prefer to transact in cash.

According to Bitcoin.com, Australia’s Coalition Government has introduced a bill that would regulate digital currency exchanges, introducing “reforms” that will “strengthen the Anti-Money Laundering and Counter-Terrorism Financing Act and increase the powers of the Australian Transactions and Reporting Analysis Centre (Austrac).”  

Here’s Bitcoin.com with more:

“Among other proposals, the bill will “strengthen Austrac’s investigation and enforcement powers” as well as “close a regulatory gap by bringing digital currency exchange providers under the remit of Austrac,” the announcement reads, adding that:

‘The bill provides a net regulatory relief to industry of $36 million annually, with the digital currency exchange sector being regulated for the first time, while deregulating low-risk industries such as cash-in-transit, which is already subject to state and territory licensing requirements.’”

As Bitcoin.com explains, Australia’s new AML rules resemble regulations adopted by Japan and China over the past 18 months. In China, the crackdown on intraday high frequency trading triggered a decline in trading volume that caused the country to surrender its position as the bitcoin market leader.

“Earlier this year, following investigations by the People’s Bank of China (PBOC), many Chinese bitcoin exchanges halted bitcoin withdrawals to extensively upgrade their systems for the purpose of AML and KYC compliance. Also the European Union has been discussing how to impose rules on bitcoin exchanges as part of its Fourth Anti-Money Laundering Directive.”

Meanwhile, in what looks like an effort to compensate bitcoin traders for the overly stringent new regulations, Australia ended the double taxation treatment of bitcoin in July.

Read More @ ZeroHedge.com

Bitcoin & Bitcoin Cash Smash Through $5,000!

by Jeff Berwick, The Dollar Vigilante:

Now, I realize I can’t do this forever. I can’t continue for years to combine the value of both Bitcoin and Bitcoin Cash and quote it as a “total value” of bitcoin.

But, considering that it was just 19 days ago that every person in the world who owned bitcoin, if they stored it correctly, also became a new owner of an equal amount of Bitcoin Cash… it is still a very reasonable thing to take note of the two currencies combined price as being the value that the grand majority of bitcoin holders currently hold… or “HODL”, to talk more like the cool kids.

I’d say that this is a perfectly viable thing to mention for at least another month or two… then it’s probably best to completely delineate the two as totally separate entities for the most part.

In any case, since I’ve now officially decided that it is fine for me to do so… I will now make mention that the combined price of Bitcoin and Bitcoin Cash surpassed $5,000 this afternoon!

As you can see, during the day on Saturday, bitcoin was valued over $4,117 and Bitcoin Cash continued to skyrocket, peaking over $900 which equated to a combined value of more than $5,000!

This is no small feat!

On July 17th, just over one month ago, bitcoin hit a low of $1875.

At a combined price of $5,000 today, that means people who held bitcoin on July 17th and haven’t since sold their bitcoin or Bitcoin Cash have had a gain of 167{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}!

Not bad considering the Health Ranger warned, “Bitcoin collapse now under way… has already plunged nearly 40{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} from its high.”

He warned that the August 1st fork was a “bitcoin civil war” and that the bitcoin Ponzi scheme was unraveling.

Soon after we wrote, “Don’t Fear The Fork: The Future of Bitcoin” where I told people to ensure they held their bitcoin properly, so they received Bitcoin Cash and to just HODL and not worry about the fork.

That’s probably why you should get your vitamin advice from health websites and your financial advice from financial websites.

It’s a crazy way of doing things I know…

Read More @ TheDollarVigilante.com

If the Lights Go Out, You’ll Want to Own Gold

by Peter Schiff, Schiff Gold:

Imagine the financial chaos that would ensue if there was a widespread, long-term, power grid failure. Business would literally halt.

Stop and think for a moment about how dependent the financial system is on computers. Banking, stock and bond trading, and the vast majority of our day-to-day transactions, rely on computer networks. Many people don’t even use cash anymore. Everything is digital. We even have wholly digital currencies like Bitcoin.

We take these computer systems for granted. In reality, they put us at considerable financial risk. This vulnerability is another reason you should buy gold.

During a recent interview covered in Forbes, Marc Faber talked about the importance of owning physical assets like gold and silver, and holding them outside of the banking system. He said the biggest geopolitical risk isn’t a conventional war. It’s a cyber attack that could take down the power grid.

What is our vulnerability? It is unlikely somebody would invade the US. I mean, nobody is as foolish as that. It’s unlikely that someone will go invade China … So, I think the vulnerability of society is less in direct, big world wars that are fought not with tanks. They are fought by say somebody could turn off the lights in New York, or the electricity, or the internet. If you switched off the internet, what would happen? First of all, nobody could go shopping because everybody shops with a credit card. So, in these times, you want to actually have access to something physical that is recognized as a medium of exchange.”

Of course, it wouldn’t take a cyber attack for you to lose access to your money. Governments can limit your ability to get cash. As we recently reported, EU member states are considering a proposal that would allow them to temporarily stop people from withdrawing their own money from their accounts. The policy is intended to help prevent bank runs.

During the Greek financial crisis, people faced withdraw limits and currency shortages. The entire banking system shut down for three weeks. Even when banks reopened, depositors faced withdraw limits of 420 euros a week. As a result, a robust barter economy quickly developed out of sheer necessity.

These risks underscore the importance of having access to physical gold or silver. In the event of a total electrical grid shutdown, or a successful cyber attack, or a government induced collapse, you can continue to transact business if you own precious metals.

Faber also emphasized the importance of diversification in general. In the event of a financial collapse, you don’t want to have all of your eggs in one financial basket.

By being in equities and by being in gold, and also having some exposure to bonds, you have some diversification. Then you can hope when the hour of truth occurs, you will only lose, say, 50{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of your assets, but your neighbor loses everything. So relatively speaking, you will have done very well.”

Read More @ SchiffGold.com

Major Sanctions Escalation? Informed Sources Say Russian Bank Disconnected From SWIFT

by Paul Goncharoff, Russia Insider:

Rumors are swirling in Moscow that a Russian bank has been removed from SWIFT

What is the foreign policy game plan ranged against Russia? It looks like the first serious baby-steps to an existential sanctioned escalation may have just been quietly taken. It may very well be that the first Russian bank was disconnected from SWIFT. While I have not heard any confirmation, the word on the Moscow financial grapevine persists.

The Russian “Tempbank” (http://www.tempbank.ru/eng/) whose management has been individually sanctioned by the US for ongoing trade with Syria and Iran was disconnected from SWIFT according to apparently “informed sources”. It seems after the sanctions were removed from Iran a while ago Tempbank went ahead and legally opened correspondent accounts with the Iranian Central Bank and a number of large banks of that country. It has further been rumored that the Tempbank chairperson, Mr. Mikhail Gagloyev received a letter from the “human rights” organization “Associations against the Nuclear Program of Iran” (UANI). This is an interesting organization in its own right. In the letter, UANI warned the Russian bank against cooperating with Iranian or Syrian companies. Meanwhile, the talk in the financial street was that the management of Tempbank was targeted for personal sanctions because of their cooperation with Iranian and Syrian businesses. If these reports are correct, then it follows that with the right amount of influence from the right sources, any Russian bank can be disconnected from SWIFT without much legal recourse or chitchat. This does not look to be a de-escalation of tensions. Then what other domino’s might follow, and to whose real advantage?

While on the subject of money and banks. Governments are struggling to discover just the right fix to get a balance between controlling public debt, which now exceeds 110 per cent of GDP for the advanced economies, and boosting the rate of economic growth. The first goal requires quite a bit of budgetary tightening, while the second needs just the opposite. What is a government or central bank to do?

One option I overheard recently being discussed by some (very respectable) EU bankers recently imbibing vodka in Moscow is to restructure (i.e.; write off, disappear) part of the government debt that has been bought up by the central banks as a direct result of quantitative easing. Their logic was since both the government and the central bank are the public sector; a consolidated public sector balance sheet would net this debt out entirely. I paused and tried to puzzle this one out over my cappuccino as I stirred in my sweetener, but no bright lights illuminated my thinking. All I could come up with was a deep breath and a vision of hyperinflation spreading like diaper rash across the world’s financial backside.

Now consider what might happen if those bonds held by central banks were simply cancelled, instead of being sold at some point in the future back into the private sector as was initially dreamed up (before NIRP’s and ZIRP’s became household monikers). Should that happen the long-term restraining effect of bond sales would also be cancelled out, so theoretically there should be an immediate stimulatory effect on nominal demand in the economy. Theoretically. In fact, the central banks in both the USA, Japan and EU have purchased so much government and commercial debt since 2008 that the effects of such an action could be rather volatile putting it mildly. It follows also that the volatility of the financial markets would be even greater if instead of just cancelling past debt, the central bank were to agree with the government to further enhance financing increases in the budget deficit by printing even more money. We would then really be in a world of hurt, as the specter of “helicopter money” becomes reality. Say goodbye to pretending there is a firewall between monetary and fiscal policy. I wonder if this way of thinking has taken root at the Fed as well, time will tell no doubt.

Except in times of war, countries have not seriously considered unleashing such extreme actions. The hyperinflationary damage, which results from the elimination of central bank capital, has normally been considered too dangerous to let out of the financial cage.

Read More @ Russia-Insider.com

Audioblog #206-Gold’s Win-Win Scenarios, In The Upcoming, Historic Crypto-Currency Explosion

by Andy Hoffman, Miles Franklin:

Andy joined Miles Franklin as Marketing Director in October 2011. Prior to joining the company, he spent sixteen years on Wall Street and five in the mining business. He has been writing free missives about precious metals, markets, and economics since 2004.

Click HERE to listen.

Read More @ MilesFranklin.com

Greg Weldon: Gold is a “coiled spring… the breakout is here, fundamentals are in place, technicals are compelling”

by Mike Gleason, Money Metals:

Coming up we’ll hear a wonderful interview with Greg Weldon of Weldon Financial and author of the book Gold Trading Boot Camp. Greg gives us his thoughts on the dangerous scenario that could ensure if a selloff drives everyone out of stocks all at the same time, shares his opinion on Bitcoin and also tells us why he views gold as a coiled spring waiting to release. Make sure you stick around for my conversation with Greg Weldon, coming up after this week’s market update.

Downside volatility hit financial markets on Thursday as concerns grow about the political path forward for the White House. President Donald Trump again finds himself under heavy criticism from the media and also from a growing chorus of establishment Republicans. More on that in a moment…

Click HERE to listen.

Read More @ MoneyMetals.com

STEVE BANNON OUSTED/BREITBART PROMISES “THERMONUCLEAR WAR”

by Harvey Organ, Harvey Organ Blog:

GOLD DOWN 35 CENTS/SILVER DOWN 4 CENTS ON 7TH CONSECUTIVE RAID/DEBORAH WASSERMAN SCHULTZ’S AIDE CHARGED.

GOLD: $1286.15  DOWN $0.35

Silver: $17.02  DOWN 4 cent(s)

Closing access prices:

Gold $1284.50

silver: $16.99

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1291.88 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1287.95

PREMIUM FIRST FIX:  $3.93

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SECOND SHANGHAI GOLD FIX: $1298.42

NY GOLD PRICE AT THE EXACT SAME TIME: $1287.40

Premium of Shanghai 2nd fix/NY:$9.02

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LONDON FIRST GOLD FIX:  5:30 am est  $1295.25

NY PRICING AT THE EXACT SAME TIME: $1295.85 

LONDON SECOND GOLD FIX  10 AM: $1295.50

NY PRICING AT THE EXACT SAME TIME. $1297.65 ????

For comex gold:

AUGUST/

NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 0 NOTICE(S) FOR  nil  OZ.

TOTAL NOTICES SO FAR: 4581 FOR 458,100 OZ  (14.248 TONNES) 

For silver:

AUGUST

 

 51 NOTICES FILED TODAY FOR

 

255,000  OZ/

Total number of notices filed so far this month: 1051 for 5,255,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

end

Today for the 7th consecutive day we had a raid on both gold and silver.

 

Late at night after I received the preliminary data which gives me a good idea of where we are heading for the next day…..

 

I wrote this to my friends:

“my goodness!!……

I will be shocked if we do not have another raid for the 7th consecutive trading day.

the Oi for gold is just too high..

let us see.”

with gold ready to puncture $1300.00 and silver $17.25, you could sense that the bankers had to cool both of our precious metals. The fact that silver lagged behind gold was a good sign that a raid was called upon as well as the weak close of the gold/equity stocks.

The most important aspect of today’s data is in silver. In the COT report, the bankers did not increase their massive shortfall position in silver because they are aware of the acute shortage of metal in London. The COT report shows a huge increase in commercial short position in gold but not silver.

The bankers needed a good positive close at the Dow and Nasdaq with the Bannon firing. After the Dow initially rose past 50 points, it closed down 75 points on the day….expect huge weakness again once the new week begins.

Let us have a look at the data for today

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In silver, the total open interest  ROSE BY 1,565 contracts from 188,247 up to 189,812 with THE RISE IN THE PRICE THAT SILVER UNDERTOOK WITH  YESTERDAY’S TRADING (UP 11 CENTS) . THE BANKERS AGAIN PROVIDED THE SHORT PAPER TO INITIATE ANOTHER RAID YESTERDAY (6TH CONSECUTIVE DAY OF TORMENT). THAT FAILED IMMEDIATELY AS SILVER STARTED TO ADVANCE IN PRICE.  NEWBIE SPEC LONGS REALIZING ANOTHER FAILED RAID, JUMPED ONTO THE BANDWAGON WITH PURCHASES.  HOWEVER THE COMMERCIALS WERE STILL LOATHE TO SUPPLY THE SHORT CONTRACTS. THUS A HUGE ADVANCE IN PRICE WITH A SMALLER THAN GOLD GAIN IN OI. 

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.949 BILLION TO BE EXACT or 136{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 51 NOTICE(S) FOR 255,000OZ OF SILVER

In gold, the open interest ROSE by A MONSTROUS 10,722 WITH THE GOOD SIZED RISE in price of gold ($13.45 GAIN YESTERDAY.). The new OI for the gold complex rests at 493,127. A raid was called upon yesterday by the bankers and it failed. The bankers initiated the raid with short paper but newbie longs entered the arena with reckless abandon with the lower price of gold . Thus the bankers were not successful in covering their shorts but they did supply the necessary short paper to our newbie spec longs.  The result: increase in open interest with a higher price for gold.

we had: 0 notice(s) filed upon for nil oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:

Today, no changes in gold inventory:

Inventory rests tonight: 795.44 tonnes

IN THE LAST 25 TRADING DAYS: GLD SHEDS 41.53 TONNES YET GOLD IS HIGHER BY $53.15 . 

SLV

Today:  WE HAD NO CHANGES IN SILVER INVENTORY TONIGHT:

INVENTORY RESTS AT 334.407 MILLION OZ

 

end

.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver RISE BY 1565 contracts from 188,247 up to 189,812 (AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE  RISE IN SILVER PRICE (11 CENTS). THE INITIAL RAID THURSDAY MORNING WAS REBUFFED IMMEDIATELY BY A HUGE INFLUX OF NEWBIE LONGS ENTERING THE SILVER COMEX CASINO.  BUT THIS TIME IT WAS GOLD THAT WAS IN THE LEAD AND SILVER LAGGED BEHIND. THE BANKERS STILL HAD A HARD TIME COVERING DUE TO THAT RISE IN PRICE.  YOU CAN CLEARLY VISUALIZE BANKER CAPITULATION AS THEY TRY DESPERATELY TO EXIT SOME OF THEIR ENORMOUS SHORTS.. NEWBIE LONGS ENTERED ONCE THEY SAW THE FAILED RAID, WITH THE SUPPLY COMING FROM OLD SPECS EXITING FOR A PROFIT.  RESULT: HIGHER PRICE WITH A SMALLER OI GAIN.

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

 i)Late THURSDAY night/FRIDAY morning: Shanghai closed UP 0.29 POINTS OR 0.01{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}   / /Hang Sang CLOSED DOWN 296.65 POINTS OR 1.08{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} The Nikkei closed DOWN 232.22 POINTS OR 1.18{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED DOWN 0.49{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP at 6.6722/Oil UP to 47.18 dollars per barrel for WTI and 51.02 for Brent. Stocks in Europe OPENED DEEPLY IN THE GREEN , Offshore yuan trades  6.6807 yuan to the dollar vs 6.6722 for onshore yuan. NOW THE OFFSHORE IS WEAKER  TO THE ONSHORE YUAN/ ONSHORE YUAN STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS STRONG TO THE DOLLAR AND THIS IS COUPLED WITH THE WEAKER DOLLAR. CHINA IS HAPPY TODAY

Read More @ HarveyOrganBlog.com

Cryptocurrencies: The Unfolding Fiat Digital Scheme

from The Daily Coin:

The feature image (on the left) is a depiction of Satoshi Nakamoto. We think it’s the person in the middle, because he looks “active” but we’re not sure which image was tied to “him” so we just used several. You can decide which image actually represents Satoshi.

When I wrote the  three part series detailing how the banksters could potentially unleash the next level of enslavement through cryptocurrencies I hadn’t even discovered ACChain. Two months later we find out that ACChain is unfolding right now – it is here and it is growing, daily. Quantum computing is here.

Now we find that some of the most respected voices in the alternative economic/financial analyst space are turning towards a new type of illusory, fiat wealth and proclaiming it will “save us from the banksters”. The magic bullet has arrived and we should all jump on board. Sounds like something a bankster would hope we would do with their latest pile of derivatives nonsense.

A ghost, “named” Satoshi Nakamoto developed bitcoin – no one knows if this is a person, a tadpole, a group of people, a space alien or an NSA/CIA operative, but, it is accepted, on blind-faith, that it is a person, a man of Japanese origin. This story, which is akin to a fairy-tale because it is only a story since no one has ever seen this “person” or provided any photographic evidence or any published works outside of the bitcoin illusion. I am suppose to believe “he” gave us the keys to the kingdom that will “save us from the banksters”. Is this the story that I am suppose to believe and place my families wealth and security in this mechanism? Seriously?

Andy Hoffman, during a recent interview stated he “will never do another interview with people that believe in conspiracy theories” while he, and all the other bitcoin fans, believe in the fairy-tale spelled out above. Never mind the fact the NSA, in conjunction with MIT, produced a white paper in 1996, spelling out how an anonymous cryptographic currency could circumvent the current cash system. This was a full 12 years ahead of Sat-on-sushi’s white paper explaining bitcoin. Never mind the fact, as The Daily Economist pointed out, Sat-on-sushi’s white paper just happened to hit the wire during the 2008-2009 economic meltdown, actually being released on Halloween 2008. Personally, I gave up on coincidences decades ago.

In 1996 the NSA (that’s right, a government agency) published a White Paper titled, HOW TO MAKE A MINT: THE CRYPTOGRAPHY OF ANONYMOUS ELECTRONICCASH.  And in this white paper, analysts and researchers laid out the entire breadth and scope of replacing cash and other fiat currencies with a completely digital one, based on anonymous cryptocurrencies.

And they did this 12 years before the anonymous ‘Satoshi Nakamoto’ published his/her White Paper on the very eve of the financial collapse. Source

Stating that a fellow analyst’ work is  “a dime a dozen” [at the 28:20 mark] doesn’t really shine an appropriate light on the alternative economic/financial analyst community. Most everyone is doing the best they can to present factual, alternative viewpoints and analysis that dispel the continual stream of lies, deceit and propaganda we are sold as truth by the mainstream media. Not really a confidence builder when we are discussing our wealth and the financial security of our families. To attack one is to attack all, including the one speaking. I feel the work I do is worth far more than a dime-a-dozen.

One of the more disturbing revelations over the past several months is how once tried and true hard asset advocates have suddenly become a voice for a new digital illusion of wealth. Cryptocurrencies “value” are derived from the fiat currencies of financial enslavement like the Federal Reserve Note, Japanese Yen and Euro. I must have missed something along the way as I have been under the impression these were completely worthless scripts, printed out of thin air and backed by nothing more than “faith and credit” – translation – “faith means you believe in something that can not be proven and credit is the ability to take on more debt”. Dave Kranzler explained this to me one day and it seems to fit pretty nicely.

The first question Sean ask during the interview is – “What is our cause?” For me, this is an extremely important question. One that each of us should ask ourselves everyday, especially, the people discussing economics, finance, money and currency with a wider audience.

I am so sick of FUD [fear, uncertainty, doubt]. I am so sick of conspiracy theory. I am so sick of BS that goes on. It stops the ability for people to save themselves with honest money and the same goes with bitcoin. I’m not proselytizing. I’ve been the one bridge between precious metals and bitcoin. I follow the bitcoins saga for; I’ve been an owner for two years and learned as much about bitcoin as I have about precious metals and I understand how it works. I don’t need to watch a video to know it’s ridiculous [refering to the interview with SGTReport and Lynette Zang about ACChain].

If a person builds a financial bridge, a safety-net, and one pillar of this bridge is a digital illusion, backed by faith and credit and the other is money – actual money, not fiat currency, how stable will that bridge be once it is complete? Gold is money and everything else – everything else – is credit. “Everything else” would include bitcoin or any other cryptocurrency not backed with physical gold and even gold-backed cryptocurrencies, in my opinion, are suspect.

Read the rest of the article @ TheDailyCoin.org