Crypto Revolution: AZ Senate Passes Bill Officially Recognizing Bitcoin as Money

moneymoney

Arizona — Last year, the state of Arizona went after the federal government’s attack on gold and silver by eliminating the capital gains taxes on precious metals. This paved the way to deal a massive blow to the Federal Reserve and end their monopoly on money. While the precious metals move was certainly noteworthy, the legislation passed this month by the Arizona Senate is nothing short of revolutionary as it officially recognizes cryptocurrencies as money by allowing residents to pay their taxes in it.

Arizona Senate Bill 1091, titled Income tax payments; bitcoin, was introduced to the Senate on January 10 and after going through several committees, on Feb. 8, 2018, it passed. It will now make its way to the House.

According to the bill’s text, it specifically names bitcoin and litecoin, as well as “any other cryptocurrency” recognized by the department as official forms of payment.

A TAXPAYER MAY PAY THEIR INCOME TAX LIABILITY USING A PAYMENT GATEWAY, SUCH AS BITCOIN, LITECOIN OR ANY OTHER CRYPTOCURRENCY RECOGNIZED BY THE DEPARTMENT, USING ELECTRONIC PEER-TO-PEER SYSTEMS.

After the state accepts the cryptocurrency, it will then convert them to US dollars, according to the legislation.

 THE DEPARTMENT SHALL CONVERT CRYPTOCURRENCY PAYMENTS TO UNITED STATES DOLLARS AT THE PREVAILING RATE AFTER RECEIPT AND SHALL CREDIT THE TAXPAYER’S ACCOUNT WITH THE CONVERTED DOLLAR AMOUNT ACTUALLY RECEIVED LESS ANY FEES OR COSTS INCURRED BY THE DEPARTMENT FOR CONVERSION.

The bill now moves on to Arizona’s House of Representatives.

If the bill passes in the house, it will become adopted and Arizona would become the first state in the U.S. to accept cryptocurrency tax payments beginning from and after December 31, 2019, as stated in the bill’s text.

Referring to the tax bill, Arizona State Republican Rep. Jeff Weninger, told Fox News:

“It’s one of a litany of bills that we’re running that is sending a signal to everyone in the United States, and possibly throughout the world, that Arizona is going to be the place to be for blockchain and digital currency technology in the future.”

“The ease of use, being able to do it in the middle of the night, being able to do it at home while you’re watching TV,” Rep. Weninger said. “I think in a few years this isn’t even going to be a question.”

Jack Bitlis, who owns Tag Employer Services also spoke to FOX News, noting that the blockchain and cryptocurrencies are the future. Bitlis stands by his word too as his payroll company allows employees to receive their paychecks through bitcoin and to invest part of their 401(k) into bitcoin.

“We’re living in just a hugely interesting time and, really, we just want to be a part of it,” Biltis said. “We just know that we could be, as Arizona’s chosen to be, at the forefront of this time and encourage these new technologies. That’s just an exciting place to be.”

Naturally, there are some less than optimistic lawmakers in Arizona who are applying Fear, Uncertainty, and Doubt (FUD) on the legislation, saying bitcoin could crash.

“If we had a bill that allowed people to pay their taxes in bitcoin directly, that puts the volatility burden on all other taxpayers because it would mean that that money goes to the state and then the state has to take the responsibility of how to exchange it,” Arizona State Senate Minority Leader Steve Farley said.

Speaking like a true shill of the Federal Reserve, and ignoring the fuvolatilityility of the US dollar, Farley followed up his FUD by saying, “these are American dollars. They’re good enough for me. They should be good enough for anybody else who pays taxes in this country.”

Countering Farley’s negativity and unfounded fear, however, Biltis noted, “It’s always a little scary and thrilling at the beginning, it was with anything (including) the Internet…The world is going to look so different in 20 years and the people that are going to be truly successful are the people that embrace it now and are on the leading edge of that curve.”

As for now, we are crossing our fingers that this bill passes the house and paves the way for a crypto-revolution.

After that, we just need to figure out how to stop the state from taking our tax dollars in the first place.

Source Article from http://thefreethoughtproject.com/crypto-revolution-state-passes-bill-officially-allow-govt-accept-bitcoin/

Crypto exchange claims $200 million stolen, but all may not be as it seems

The company reported that around 17 million nano coins belonging to investors had been stolen through unauthorised transactions. Trading above $11 a token at the time, the stolen amount totaled about $200 million. It is ranked as the number 24 cryptocurrency by value, according to Coinmarketcap.

“We extend our sincerest apologies to our customers and to all those involved in the illegal transfer of Nano on our platform,” BitGrail wrote.

“Today a charge about those fraudulent activities has been submitted to the competent authorities and now is under police investigation.”

The announcement was greeted with suspicion fueled by the company’s recent moves. In January BitGrail halted all withdrawals and deposits of nano, as well as the lisk and cryptoforecast tokens. The exchange said it would introduce obligatory identity verification and anti-money laundering protocols for its clients, in spite of claiming that it doesn’t work with governments or banks. Some users accused the exchange of planning a so-called “exit scam”, prompting the price of nano to drop 20 percent at the time.

This is not the first major heist from cryptocurrency exchanges in recent years:

COINCHECK: Last month the Japanese crypto exchange saw over $500 million stolen in NEM cryptocurrency.

BITFINEX: The Hong Kong exchange claimed about $72 million worth of bitcoin was stolen in 2016

MT. GOX: The Tokyo-based exchange filed for bankruptcy in 2014 after claiming hackers stole nearly half a billion US dollars’ worth of bitcoin.

CRYPTSY: Last July, a US federal judge ordered the defunct exchange to pay $8.2 million to customers after it failed to respond to a class-action lawsuit. The court ruled that 11,325 bitcoin were stolen in 2014 and the thief was not found.

Reuters cites other notable heists including Bter which lost 7,170 bitcoins in 2015; BitMarket.eu (18,788 bitcoins lost in 2012); Bitfloor (24,000 bitcoins lost in 2012) and Bitcoinica, which lost a total of 102,101 bitcoins in three hacks during 2012.

For more stories on economy & finance visit RT’s business section

Source Article from https://www.rt.com/business/418552-cryptocurrency-bitgrail-theft-nano/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The Crypto Cleansing

CryptoCleansingA few months ago, as I was having a conversation with another crypto advocate, these words escaped my lips: “I hate to say it, but maybe we need a price crash.” As I said them, I had a slightly sick feeling of “Be careful what you wish for.”


Now, the price has crashed. But in spite of all the pain that has caused, it was probably necessary. Why? Because it chased away the scammers and the people who were only in cryptos for a fast buck. “Bitcoin will get you a Lambo” was a pretty damned juvenile idea, after all. It was certainly nothing worth building upon.


So, whether we’ve enjoyed it or not, the fire has raged, the forest has been pretty well cleansed, and those who remain can build without ridiculous distractions.


A few days ago I reran the numbers on the market cap of world currency (about $200 trillion) and all cryptocurrencies (about $400 billion). So, crypto = 0.2% of government currencies… meaning that fiat currencies are worth 500 times what cryptos are worth. And that makes the choice in front of us nice and clear:


If you think cryptocurrencies aren’t worth one five-hundredth of fiat, sell now and go back to your Life Before Bitcoin.


If you think cryptos are worth more than one five-hundredth of fiat, get back to work.


We have a full crypto economy to build, and the worst obstacles have just been removed. Let’s get busy.


* * * * *


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Source Article from https://www.freedomsphoenix.com/Article/234176-2018-02-05-the-crypto-cleansing.htm?EdNo=001&From=RSS

World’s Top-Ranked Crypto Exchange Adds 240,000 Users… In One Hour






World’s Top-Ranked Crypto Exchange Adds 240,000 Users… In One Hour


January 11th, 2018

Binance (Cryptogon Affiliate Link)

Via: Bloomberg:

The world’s biggest cryptocurrency exchange keeps getting bigger.

Hong Kong-based Binance.com is adding “a couple of million� registered users every week, with 240,000 people signing up in just an hour on Wednesday, Chief Executive Officer Zhao Changpeng said in an interview with Bloomberg Television. Demand is so high that the company is limiting new customers, he said, though Binance may fully reopen in the coming weeks.

“We did not expect this kind of growth to be honest,� Zhao said from Tokyo on Thursday.

Binance was the world’s most active crypto exchange over the past 24 hours, according to Coinmarketcap.com, hosting $6 billion worth of digital currency trades. The most popular asset was Tron, which accounted for 11 percent of volume.

Zhao said his average customer was male and aged 25-35, though Binance is “beginning to get a lot of interest from institutional investors.�















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Source Article from http://www.cryptogon.com/?p=52197

Bitcoin investors will crawl back to gold when crypto-craze uncertainty creeps in

“I actually think you can build a much stronger case for gold in an environment where bitcoin is drawing this kind of investor interest,” Boyd said, highlighting unaddressed risks, still posed by virtual currencies.

Boyd’s Agnico Eagle Mines is a Canadian-based gold producer with operations in Canada, Finland and Mexico and exploration and development activities extending to the US.

“One of the things about bitcoin and the cryptocurrencies is: is there really an unlimited supply? We’re gold miners. We mine deposits. I think, over time, the question will be: are these cryptocurrencies and the developers of these cryptocurrencies just mining the public?” the mining boss told CNBC.

According to Boyd, investors meeting with Agnico on a regular basis are more and more open to gold, and their interest can drive the traditional asset higher.

“Our sense is that investors are starting to do their homework, revisiting the high-quality gold equities, so there is a sense that gold’s about to turn here. We wouldn’t be surprised to see gold between $1,400 and $1,500 within the next 18 months or so,” he said.

Angico reportedly expects gold output to grow 25 percent between now and 2020. Boyd also said that for those seeking to manage potential risk, few investments were better than gold and cryptocurrencies are definitely not among those few.

“I think gold has done exceptionally well given that we seem to be setting record highs in the stock market every week. The market will turn at some point, and it pays to be positioned properly in gold now, it will be hard to get positioned properly somewhere down the road. Gold investors will come back when uncertainty creeps back into the market,” he added.

“Gold’s a highly developed market, very liquid market, a very efficient store of value and portfolio diversifier. That’s why you need to own it. It’s proven itself. It’s hard to believe it’s going away just because of technology. People can invest in cryptocurrencies, but now’s the time to own gold. If the stock market’s setting record levels, I’d rather own gold than bitcoin,” Boyd said.

For more stories on economy & finance visit RT’s business section

Source Article from https://www.rt.com/business/414739-bitcoin-investors-crawl-back-gold/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Bitcoin Futures Plunge – Fiat Crypto-Space Crumbles: Gold Buying Increases

The day’s slide started around 9amET, when a burst of gold buying appears to have reset the correlation between XAU and BTC: Just a few hours later, Bitcoin is back below $16,000. [Who in the world can afford 1 Bitcoin ~ The US Middle Class? Think Again!]

Litecoin – yesterday’s big winner – is tumbling…

Ethereum is roling over…

Futures are underperforming spot and collapsing the arbitrage…

5 Ways To Bet Against Bitcoin’s Highly Speculative “Get Rich” Scheme: Rise & Fall Of Famous Bubbles

Billionaire Hedge Fund Pioneer Ray Dalio: Bitcoin Is A Bubble, Not A Currency…Not A Store Of Value

While no immediate catalyst for the moves are obvious, we note that Interactive Brokers has allowed clients to short Bitcoin futures (with a massive $40,000 margin) and South Korea said on Wednesday it may tax capital gains from cryptocurrency trading.

[South Korea Has Further banned domestic initial coin offerings and margin trading in cryptocurrencies following China & Russia] as global regulators worried about a bubble, with Australia’s central bank chief warning of a ‘speculative mania” that has seen the digital asset making rip-roaring gains. [Australia is further moving forward With Legislation to strictly regulate  cryptocurrencies] [Top 11 Countries In Which Bitcoin is Banned]

ZeroHedge

Dollar in Death Row | John Embry

Related News:

  1. Is This The Beginning Of The Next Silver Rush?
  2. Global Silver Institute: Physical Silver Supply Deficit Since 2004
  3. South Korea’s Silver Hi-Tech Exports: Economy Grows At Fastest Rate In 7 Years
  4. Bitcoin Zealots Suddenly Admit It Will Never Work As A Universal Payment System
  5. Rigging Of The Block Chain ~ $300 Million Vanishes With A Click: U.S. Bitcoin Becoming More Isolated
  6. Gold’s Global Supply Artery: Declining Supply Heading For Cardiac Arrest With Increasing Demand Vs Debt Clock
  7. Why Silver & Gold Are Not Presently $728.00/Ounce & $5,996.00/Ounce Respectively: The Economy Is One Big Scam

Source Article from https://politicalvelcraft.org/2017/12/13/bitcoin-futures-plunge-fiat-crypto-space-crumbles-gold-buying-increases/

11-28-17 — James Babb – Crypto and Pirate WIFI (MP3 & Videos LOADED)

Guests
Ernest Hancock
, James Babb

Topics
Freeedom’s Phoenix Headline News
, Bitcoin
, Cryptocurrencies, anonymity, regulation

Hour 2 – James Babb (Libertarian Activist) on Bitcoin/Cryptocurrencies, Investing in freedom-oriented currencies, Creating a Precariat Nation, etc…


-30-




Hour 2


James Babb


Libertarian Activist


James is a member of the Libertarian Party of Pennsylvania


In 2016, he was the Libertarian candidate for Treasurer for the state of PA, where he explained his intent to take his Oath of Pennsylvania Treasurer seriously, and “return the loot [pilaged loot of the state of Pennsylvania] to the rightful owners, Immediately”.


FIJA, Liberty, Freedom Activist


Follow James:


Twitter @jamescbabb, http://www.jamesbabb.com/


 


=====================================


 


 


TOPICS DISCUSSED…


Mnemonic Code Converter? = https://iancoleman.io/bip39/


BitAddress.Org


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Source Article from https://www.freedomsphoenix.com/Media/230039-2017-11-28-11-28-17-james-babb-crypto-and-pirate-wifi-mp3.htm?EdNo=001&From=RSS

China Unshackles From Bitcoin: Beijing To Shut Down All Crypto Exchanges By The End Of September

 

 

Yuan-denominated Bitcoin has crashed as much as 25% 35% in Chinese trading, plunging from 25,000 yuan to as a low of 16,000 on local exchanges BTCChina (and as low as 20,000 on OKCoin), following confirmation of last week’s Caixin report that Beijing would stop cryptocurrency exchange trading.

China’s second largest exchange, BTC China, said that it would halt all trading on the platform beginning September 30, launching a liquidation panic.

  1. SDR to Bitcoin
  2. More Countries Separate Themselves From U.S. Deep State IMF’s SDR, aka; PetroDollar

In a statement released on Weibo, BTC China said that it would immediately stops accepting new account registrations on BTCChina Exchange. The decision was made after “carefully considering” Chinese regulatory bodies’ Sept. 4 announcement on preventing risks associated with token fundraising. A google-translated version of the statement:

China will stop all trading business on September 30th

Dear Bitcoal Chinese users: According to the September 4 issue of the “People’s Bank of China Central Office of the Ministry of Industry and Information Technology Ministry of Industry and Commerce, China Banking Regulatory Commission, China Securities Regulatory Commission on the prevention and treatment of the risk of the issuance of the currency,” the spirit of the document, adhering to the protection of investment risks, the maximum protection of users

The principle of interest, Bit Coin Chinese team by careful discussion, is to make the following decision:

1. Bit currency China’s digital asset trading platform today to stop the registration of new users;

2. September 30, 2017 Digital asset trading platform will stop all trading business.

Beitou China’s pool (pool) and other business will not be affected, continue to normal operation.

We apologize for the inconvenience. If you have any questions, please contact support@btcchina.com.

The immediate result was a sharp plunge in the CNY-denominated price of bitcoin on exchanges like BTC China and OKCoin:

While China no longer dominates cryptocurrency trading – it accounted for nearly 90% of all trading in late 2016 before Beijing launched a series of measures to limit participaton – and is now responsible for less than 40% of global volumes, the Chinese selloff has spooked global markets, pushing bitcoin sharply lower on international exchanges as well like Coinbase, where it was trading at approximately $3,600 last.

  1. Chart Is Telling Us That The $USD Is Going To Be Collapsing In The Coming Months.
  2. China Escalates Crackdown On Corrupt Banking: 370 People Arrested In Illegal Foreign-Exchanges Totaling $64 Billion.

A breakdown of global bitcoin exchanges by volume is shown below:

  1. China to outlaw Bitcoin exchanges fully by end of September

Also notable: as of this moment, China-denominated bitcoin is trading at about 17,000 yuan or just under US$2,500, indicating there is a nearly 30% arb between Chinese and offshore trading.

This isn’t the first time the bitcoin market in China has come under regulatory scrutiny. In early February, major exchanges suspended withdrawals of bitcoin and stepped up their scrutiny of clients after meeting with the central bank.

Emil Chan, vice-president of the Hong Kong Blockchain Society, said it would be difficult for regulators to outlaw bitcoin trading altogether. “There is no option to restrict cross-border sales of bitcoin. It is a smarter move to maintain the operation of the local exchanges if the central bank’s goal is to minimise the outflow of yuan.”

Still, the virtual currency is up more than six times from a year ago, with some participants convinced the bitcoin market is in a bubble. “In fact, the market was too hot. The action taken is an effective action to cool down the global cryptocurrency market,” said Chan.

Meanwhile, Leonhard Weese, president of the Bitcoin Association of Hong Kong, said if China continues to toughen up on regulations to restrict growth in bitcoin, it may drive the business to the city.

“People in China will be more careful about marketing these events, and a lot of that marketing activity will come to Hong Kong in the form of conferences and communities,” said Weese.

It remains to be seen if Chinese bitcoin fans will simply switch to other OTC/bilateral forms of trading, or simply take their trading to neighboring Japan and South Korea which remain eager advocates of trading in the crypto space.

 ZeroHedge

 

troll thumbs up gif

Related Articles:

  1. Crypto Banking Schemes
  2. Keeping The Faith: Bitcoin’s Top Three LIES
  3. Bitcoiners “Holding On With A Death Grip” As “Pipe Dream” Appears Hopelessly Obsolete
  4. Bitcoin With Click Of A Mouse You Could Be Without: Contrary To The Hype, Bitcoin Is Centrally Controlled
  5. Bitcoin aka ‘Digital Bit On A Spread Sheet’: Crashes On Massive Volume As China Plans To Shut Local Exchanges

Source Article from https://politicalvelcraft.org/2017/09/14/china-unshackles-from-bitcoin-beijing-to-shut-down-all-crypto-exchanges-by-the-end-of-september/

Spitznagel: Why Crypto Spreadsheet Digits ~ “Misnomer Currencies” Will Never Be Safe Havens

Binary Digits

Every further new high in the price of Bitcoin [misnomer coin] brings ever more claims that it is destined to become the preeminent safe haven investment of the modern age — the new gold.

  1. Comparing Gold’s Price To Bitcoin Is Patently Ridiculous: Spreadsheet Bit-digit Would Need To Be Backed By $450,000.00 Each

But there’s no getting around the fact that Bitcoin [misnomer coin] is essentially a speculative investment in a new technology, specifically the blockchain.

Think of the blockchain, very basically, as layers of independent electronic security that encapsulate a cryptocurrency [misnomer currency] and keep it frozen in time and space — like layers of amber around a fly. This is what makes a cryptocurrency “crypto.”

[What makes a crypto-digit “crypto” is the fact it has an unknown disclosure for its beginning and current centralized control ~ thus the implementation of a hard fork proving it be cut and pasted into anything by the “crypto controllers” => Crypto = A secret allegiance to a political creed.]

That’s not to say that the price of Bitcoin [misnomer coin] cannot make further (and further…) new highs. After all, that is what speculative bubbles do (until they don’t).

  1. Bitcoin With Click Of A Mouse You Could Be Without: Contrary To The Hype, Bitcoin Is Centrally Controlled

Bitcoin and each new initial coin offering (ICO) should be thought of as software infrastructure innovation tools, not competing currencies.

It’s the amber that determines their value, not the flies. Cryptocurrencies are a very significant value-added technological innovation that calls directly into question the government monopoly over money.

This insurrection against government-manipulated fiat money [By One Of Crypto Centralized Control Over Fiat Bit Digits ~ see hardfork] will only grow more pronounced as cryptocurrencies [misnomer currencies] catch on as transactional fiduciary media; at that point, who will need government money? The blockchain, though still in its infancy, is a really big deal.

  1. Gold Is Money: It’s Elemental!
  2. If the Lights Go Out, You’ll Want to Own Gold

While governments can’t control cryptocurrencies directly, why shouldn’t we expect cryptocurrencies to face the same fate as what started happening to numbered Swiss bank accounts (whose secrecy remain legally enforced by Swiss law)?

All local governments had to do was make it illegal to hide, and thus force law-abiding citizens to become criminals if they fail to disclose such accounts. We should expect similar anti-money laundering hygiene and taxation among the cryptocurrencies.

The more electronic security layers inherent in a cryptocurrency’s perceived value, the more vulnerable its price is to such an eventual decree.

Bitcoin Centralized Controlled Fork

Bitcoins should be regarded as assets, or really equities, not as currencies.

They are each little business plans — each perceived to create future value. They are not stores-of-value, but rather volatile expectations on the future success of these business plans.

But most ICOs probably don’t have viable business plans; they are truly castles in the sky, relying only on momentum effects among the growing herd of crypto-investors. (The Securities and Exchange Commission is correct in looking at them as equities.)

Thus, we should expect their current value to be derived by the same razor-thin equity risk premiums and bubbly growth expectations that we see throughout markets today. And we should expect that value to suffer the same fate as occurs at the end of every speculative bubble.

  1. Australia Cracks Down On Bitcoin Exchanges

If you wanted to create your own private country with your own currency, no matter how safe you were from outside invaders, you’d be wise to start with some pre-existing store-of-value, such as a foreign currency, gold, or land.

Nixon announces the end of the U.S. gold standard. Rothschild may have gotten Libya & Ukraine’s gold but China is buying U.S. through Rothschild paper suppression of the physical gold/silver metals. Click Here To Enlarge

Otherwise, why would anyone trade for your new currency? Arbitrarily assigning a store-of-value component to a cryptocurrency, no matter how secure it is, is trying to do the same thing (except much easier than starting a new country). And somehow it’s been working. [?]

Moreover, as competing cryptocurrencies are created, whether for specific applications (such as automating contracts, for instance), these ICOs seem to have the effect of driving up all cryptocurrencies [digits].

Clearly, there is the potential for additional cryptocurrencies [digits] to bolster the transactional value of each other—perhaps even adding to the fungibility of all cryptocurrencies [digits]. But as various cryptocurrencies start competing with each other, they will not be additive in value.

The technology, like new innovations, can, in fact, create some value from thin air. But not so any underlying store-of-value component in the cryptocurrencies. As a new cryptocurrency is assigned units of a store-of-value, those units must, by necessity, leave other stores-of-value, whether gold or another cryptocurrency [fiat unbacked digit].

Bitcoin: Most Americans Cannot Even Afford 1

New depositories of value must siphon off the existing depositories of value.

On a global scale, it is very much a zero sum game.

Or, as we might say, we can improve the layers of amber, but we can’t create more flies.

This competition, both in the technology and the underlying store-of-value, must, by definition, constrain each specific cryptocurrency’s [fiat unbacked binary digit] price appreciation.

HYPERINFLATION

Put simply, cryptocurrencies have an enormous scarcity problem.

[What? ~ Bitcoin can be fractionalized to as little as an insignificant penny] [ Remember, the value of the USD “where Bitcoin is valued” is now dropping precipitously] [Scarcity ~ watch inflation have its say against the USD ~ it will turn into further fiat debt ~ the dilution of America]

  1. When $10 Trillion In Fiat Debt Plus $80 Trillion In Global Debt Is Created In A Decade
  2. The Big Lie of Bitcoin ~Bitcoin supply is not limited, because traders can always create another currency

The constraints on any one cryptocurrency’s supply are an enormous improvement over the lack of any constraint whatsoever on governments when it comes to printing currencies.

Where Currency Is Backed BY Gold & Silver

[This is a pipe dream ~ Hard Fork has already shown the no restraint by the crypto centralizers and the unbacked fractionalization of the crypto digits]

  1. JP Morgan indebting/diluting Iraq’s Financial System By Fractional Digits 

However, unlike physical assets such as gold and silver that have unique physical attributes endowing them with monetary importance for millennia, the problem is that there is no barrier to entry for cryptocurrencies [misnomer currencies]; as each new competing cryptocurrency finds success, it dilutes or inflates the universe of the others.

  1. All Cryptocurrencies Simultaneously Plunge

The store-of-value component of cryptocurrencies — which is, at a bare-minimum, a fundamental requirement for safe haven status — is a minuscule part of its value and appreciation.

After all, stores of value are just that: stable and reliable holding places of value. They do not create new value, but are finite in supply and are merely intended to hold value that has already been created through savings and productive investment.

To miss this point is to perpetuate the very same fallacy that global central banks blindly follow today. You simply cannot create money, or capital, from thin air (whether it be credit or a new cool cryptocurrency). Rather, it represents resources that have been created and saved for future consumption. There is simply no way around this fundamental truth.

Viewing cryptocurrencies as having safe haven status opens investors to layering more risk on their portfolios.

Holding Bitcoins and other cryptocurrencies likely constitutes a bigger bet on the same central bank-driven bubble that some hope to protect themselves against.

The great irony is that both the libertarian [?] supporters of cryptocurrencies and the interventionist supporters of central bank-manipulated fiat money both fall for this very same fallacy.

Cryptocurrencies are a very important development, and an enormous step in the direction toward the decentralization of monetary power.

[Completely disagree as hard fork proved Bitcoin is unilaterally & centrally controlled]

This has enormously positive potential, and I am a big cheerleader for their success.

[It may have potential in block chain as an asset but never as money]

But caveat emptor – thinking that we are magically creating new stores-of-value and thus a new safe haven is a profound mistake.

ZeroHedge

Related News:

  1. Russia And China Declare All Out War On US Petrodollar
  2. J.P Morgan Indebting Iraq Financial System By Fractional Digits
  3. Central Banks Prepare for End of the Dollar – G. Edward Griffin Interview
  4. PETER SCHIFF – Bitcoin may look profitable, this is a trap that you should never be fooled by

Source Article from https://politicalvelcraft.org/2017/08/21/spitznagel-why-crypto-spreadsheet-digits-misnomer-currencies-will-never-be-safe-havens/