Justin’s note: Central bankers are losing sleep over bitcoin.
And they should be. It’s a direct threat to their monopoly on money.
Because of this, they’re trying everything they can to crush bitcoin.
They’re urging people not to buy it. They’re calling it a bubble. They’re even talking about launching their own rival digital currencies.
Regular readers know that I think these efforts will fail. But I couldn’t help but wonder what Doug Casey thinks of this. So, I called him up a few days ago to get his take…
Justin: Doug, governments around the world seem to be waging a war on bitcoin.
Do you expect to see more of this in the years ahead?
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Doug: Absolutely. You can plan your life around governments doing everything they can to discourage bitcoin and all the other private cryptocurrencies.
This is because every government in the world is running deficits—gigantic deficits in many cases.
And they’re financing this by printing money. It’s national policy everywhere because it’s supposed to “stimulate” the economy.
They like to see the stock and bond markets and real estate markets high.
They don’t want to give up that monopoly. So, they’re going to do what they can to quash bitcoin and the others.
Justin: But will they succeed?
Doug: Well, they can’t ban it outright. But who knows what kind of computing power the National Security Agency (NSA) has. They could probably destroy any computer network at this point.
But I don’t doubt that we’ll experience monetary chaos in the future.
At that time, they’ll try to ban it. They’ll tell people that they have to use the national currency.
You know the drill. They’ll say if you use bitcoin you’re a money launderer, a drug dealer, or a child pornographer.
So, propaganda will be a major weapon in this. Penalties for using cryptocurrencies will be another element.
This is what we can look forward to.
Now, that doesn’t mean that bitcoin won’t be valuable. That’s because, as I’ve said before, three-quarters of the people live in the Third World. These people use currencies that are worth little within their own countries. Outside of their country, they’re worth nothing.
So, they’ll continue to use bitcoin. But there’s trouble brewing.
And let me add something. I’ve said for some time that bitcoin is a wonderful thing. But what happens when somebody develops bitcoin 2.0?
I’m talking about a digital currency that uses better or different technology.
What happens to the value of bitcoin then? It will collapse.
But that’s not even the main reason to be concerned about bitcoin.
Justin: So, what is?
Doug: The development of quantum computing power poses a huge threat to bitcoin.
The little computers that are making bitcoin today will be obviated.
Now, I don’t know when quantum computing will become commercial or practical. But when it does, no code will be uncrackable.
So, they’ll be able to create bitcoin or its lookalikes in gigantic quantities almost instantly.
So, there are all kinds of X factors that most people haven’t considered.
Justin: What about governments that are trying to launch their own digital currencies?
Doug: Well, we’re living in the digital age.
Everybody has a smartphone today. So, they’re coming up with alternatives to bitcoin.
They’re developing their own digital currencies.
In the U.S., they’ll call it FedCoin. In Japan, it will be called JCoin or something. The Russians will come up with their own digital currency too.
Even the Venezuelans are trying to go digital. But they’ll fail miserably. That’s because digital currencies only work if there’s an element of trust. And there’s zero trust with them.
Still, governments around the world will try this because they want to eliminate paper currency completely.
Justin: Why do they want to do that?
Doug: They want to herd everyone into the digital money system. That way they can know absolutely everything about your entire financial life.
They’ll know what you buy…what you sell…how much you earn…and how much money you’ve tucked away. Everything.
Not only that, they’ll be able to confiscate everything that you own at will if everything is digital and online.
So, this is a big deal.
Justin: Do you think the average person will go along with this? Or will the “War on Cash” push more people into bitcoin?
Doug: I think the average person will go along with the government’s plans.
The average person trusts authorities. They trust the government.
Plus, it’s convenient to do everything digital. And the average person values convenience more than privacy. Many people prefer it this way.
In China, millions of people are involved in China’s social credit system. Everything they do is online. Your credit score…where you live…what kind of job you have.
I expect other countries to do the same.
You’ll even have a social credit rating. And if you’re a “good citizen,” you’ll get the equivalent of frequent-flyer points for associating with the right people, putting out the right memes, and so forth.
So, this is part of a much larger trend. The world is basically turning into something of a hive. And as far as I’m concerned, it’s another reason to privately buy small gold coins and put them aside.
Justin: It sounds like you’ve turned bearish on bitcoin.
Doug: Well, as I’ve said before, I got involved in bitcoin when somebody gave me one in 2011. It was worth $13 at the time, and I still have the physical token.
And early last summer, I bought a bunch of bitcoin and other cryptocurrencies.
Since then, I’ve more than tripled my money. But the market is getting too bubbly for me. It’s a lot like junior mining stocks after the public gets involved. It’s not the time to buy. It’s the time to sell.
Justin: So, have you sold all your bitcoin? Or are you just no longer a buyer?
Doug: I’m a firm believer that you should make the trend your friend. This is because a trend in motion tends to stay in motion until a serious event or crisis breaks the trend.
Based on that, I’m inclined to hold, certainly at least until January 1. So, I don’t have to pay taxes on my gains this year.
So, I don’t know how high bitcoin will go. Some smart people think it could go as high as $30,000 or $1 million. These aren’t stupid people, either.
Justin: Doug, your network includes some of the world’s top cryptocurrency experts like John McAfee.
What are these guys saying these days?
Doug: I haven’t talked to John about bitcoin since it hit $20,000.
But I know he still thinks that it’s going to hit $1 million.
I’ll have a chance to explore his reasoning behind this when I visit the Sullivan Islands with him in February.
But I’m skeptical of that price target because there will only be 21 million bitcoins.
And if you multiply 21 million by $1 million, you get $21 trillion. That’s more than the annual economic output (GDP) of the entire U.S. economy.
I think that’s a bit outlandish.
So, there’s reason to be skeptical of the market. But you could have tried to pick a top at $100, $500, or even $1,000 and you would have been made a fool.
So, it’s very hard to call tops during a mania. But the money is now very big and serious.
So, it’s not the time to be buying more bitcoin. That’s for sure.
Of course, bitcoin could soar to $100,000 and make a liar out of me. But I doubt it.
Justin: Only time will tell. Anyway, thanks again for taking the time to speak with me.
Doug: My pleasure, Justin.
Living right on the Gulf in Florida I pay close attention the National Hurricane Center’s forecasts. If their 72 hour forecast cone is near my home I have to prepare. Fill my vehicles with gas, put the storm shutters up AND go to the bank and get cash because the power will go off if the storm makes landfall.
I would hate to have my ‘money’ in bitcoin in the event of major storm or earthquake.
Or massive EMP event…
This just in to the TBP newsroom>>>>>>>>>>>>>>>>>>>
US preparing for a “Bloody Nose” attack on NKorea._______Drudge Report.
EMP to follow ?? Will Bitcoin be useless as tits on a bull?
Bloody nose, eh?
It sounds so benign. Innocent, even. “Oh, look. We gave the Norks a bloody nose. No big deal. Only half a million died. They were gonna starve anyway.”
About a week ago Trump made overtures to Russia for their help regarding NK.
This week Trump approved the sale of lethal arms to the Nazi Ukranians.
Hate him, love him, or don’t care … surely all can see this man has no honor, no integrity, and from a foreign leader’s perspective, totally untrustworthy.
But, at least he’s not Hillary. There’s always that.
The Rise Of The Cryptocurrency Psyop
What is interesting and also most suspicious in the sudden “explosion” in cryptocurrencies and blockchain technology like Bitcoin is that the actual market volume and individual trading interest in these digital products is still rather small, yet, the global mainstream media promotion of crypto has been massive; almost unprecedented. Is perception driving demand? Is demand driving perception? Or, is it really that an all out mainstream branding campaign supported by international banks is driving perception and thus artificial demand? I think the latter option is the most likely given the evidence.
I have written extensively on the “Virtual Economy” being created by globalists using crytpocurrencies as a flagship in my articles ‘The Globalist One World Currency Will Look A Lot Like Bitcoin’ and ‘The Virtual Economy Is The End Of Freedom’. The extensive establishment interest in crypto and the blockchain certainly refutes the farcical notion that these products are somehow a threat to the international banks. But beyond this, the rise of cryptocurrencies outlines a rather obvious trend being engineered for the next decade. Clearly, globalists want a cashless society with zero anonymity for the serf class, and this system is set to launch subversively in the next year.
Crypto is potentially the most disastrous development in 2017, exactly because so many liberty activists see it as as tool for decentralization when it is really a tool for total centralization. Many are beginning to wake up to the reality that crypto is not what activists thought it was years ago, but is this too little too late? Crypto means the death of the real decentralized and private economy as humanity begins to abandon localization and person to person transactions for a digitized phantom economy completely dependent on internet based trade under constant surveillance. If left unchecked, economic independence, localization and individual production will be crushed under the weight of the crypto-psyop, just as sound money was crushed under the weight of the central banking fiat psyop.
When historians look back on 2017, they will say that this year was the beginning of the end of the greatest economic bubble of all time, as well as the beginning of the full-spectrum digital economy and the last vestiges of fiscal independence.
http://www.zerohedge.com/news/2017-12-20/review-most-disturbing-events-2017
You can quote Brandon Smith without having to go through the ZH gatekeepers.
http://www.alt-market.com/articles/3336-a-review-of-the-most-disturbing-events-of-2017
Let’s say a business or a government demands payment in crypto. 2/3 of Earth dwellers aren’t even online, let alone using crypto “for all debts public and private”. Facefuck can bring all the internet they want to Africa and it won’t make a damn bit of difference.
Doug is a smart credible enough guy and almost nailed it. Govts will allow bitcoin to become mainstream and used by almost the masses. Especially the youth. Get them used to buying with their cellphones (traceable) and use bitcoin (traceable). And incentivize businesses to accept it (traceable). Then the NSA will hack bitcoin in epic fashion and blame a rogue nation they want war with. The govt by this time will have created, marketed, and made available their own version called fedcoin or something. The govt needs digital currency to be widely accepted and used and then crush and crash the competition so they are in charge and wipe out privacy as well as tax every transaction. Then the real war will be on bartering. They will make a marketing campaign if someone wants to barter with you they are 1)terrorists 2) drug dealers 3) pedophiles 4) criminals in general trying to hide something. History shows govts allow greatness in a capitalist manner and then shut it down (Tesla) and many other energy inventions to protect oil tax revenues. Digital currency is the holy grail. It is pure dictatorship without brutality. Like shit on the toilet covered by the smell orange blossom spray. They know and see everything and create a social score and threat score for every person. However, the sad ironic part is democrats refuse to vet out immigrants, stop illegal immigration and these are the people that will be most free as they won’t have a score (initially). Democrats will then slowly gain a score on these people and use that low threat score as reasons to allow them here and invite more. They will provide a living free wage (welfare) and in turn these immigrants already accustomed to repressive govts and dependent upon govt in their home country and will now vote democrat to keep their welfare. Until the average American gets fed up and Atlas shrugs the system this will continue until there are more on welfare than working and paying 90% in taxes. No more incentive to even work. Then comes a soft dictatorship, at first. Wonder which it will be, republican or democrat that becomes our first dictator as they are both deep state scum. Soon our kids and grandkids will be the immigrant fleeing the USA looking for the next best type of govt because they gave up on a constitutional republic with a capitalistic economy. They will always strive to find that and one day realize they had it all along but decided to live on their knees and allow it to be stolen from them without a shot fired……
what you describe, already exists, EBT cards etc
If the central banks really wanted to shut down bitcoin (or any other crypto currency) they could do it instantly by making it illegal for any bank to transfer USD, JPY, etc to or from a crypto currency.
Exactly. At the end of the day, Bitcoin is only a currency as long as you can “cash it in” at the end of your holding period for an actual sanctioned currency by the Government of the land you live in. Why? Well, because they have the guns. It really is that simple.
Blockchain is good for currency, and any other type of system of ledgers, but that is it. It is no better then owning 10000 shares of Pets.com in 1999. As long as it is considered worth something by the person you cash it out to into real currency, then great. Once it is either A: unable to be converted to sanctioned currency, or 2. (possibly a by-product of 1.) Is rendered less valuable, by competition or social preference, law etc., it simply becomes monopoly money.
Remember that there was a time when talisman sticks, beans, beads etc. were used as money as well. Remember green backs? Try buying your McMansion or Bentley with Bitcoin from the local dealer or homeowner? Also, what is to stop any number of other people from making a block chain “currency”? Have a Billion in Bitcoin, try going down to your local bank and saying – hey give me my billions…..good luck with that.
This is not to say that Bitcoin – or rather, Blockchain ledger tech does not have value. What I am saying is that these people trading in Bitcoin are basically FX traders that don’t know it. Most of them know nothing about market behavior, especially the FX market. At least FX trading is trading with sovereign backed currency, like a USD/AUD cross, if you lose some, at least the currency is still tradeable, just a lower cross amount. This is simply throwing money in to the fire, and hoping that the fire will give you back Gold in the alchemy….
Calling Bitcoin, or any other blockchain ledger system, a currency is not accurate. Currently all “cryptcurrencies” are acting as a commodity. Period. When GovCo accepts them as tax payments, then they will have reached the definition of modern currency status, like it or not. So be advised, if you buy in early you may end up with a Betamax. 🙂 Many people WILL lose a lot of money, only the lucky (or insiders) will make and keep any money. (Picking up pennies in front of a steamroller.)
You make money on stuff like this by trading and gambling on future values, the same sort of way you would on, say, pork bellies.
If you’re both good and lucky you make money, if you aren’t you don’t.
Most people aren’t both good and lucky, some are but most aren’t.
Anon- I would have to agree with your comment completely but I would add that the parties who end up both “GOOD and “LUCKY” are most often connected insiders.
Bitcoin is fine until you try to spend it.
That’s when you start finding out its true value against the dollar in actual purchases.
https://www.msn.com/en-us/money/investing/what-you-can-buy-with-bitcoin-a-dollar76-pizza/vp-BBGHFiJ
LMAO anytime I see an article with Casey’s name attached to it. This guy made one right call in 1979; has been consistently wrong for almost 40 years; and still has a following. Full disclosure: I always read him though; just to see how many times the terms “greater depression” and “exiting the eye of the hurricane” pop up.
Check for verification, because it IS an article from CNN, so they might have shit the bed in the accuracy / authentication division yet again, but check this out…
http://money.cnn.com/2017/12/20/technology/south-korea-bitcoin-exchange-closes/index.html