Changes to the Decentralized Currencies To Come
The Bitcoin premise goes back to at least 2008 (bitcoin.org was registered August 18, 2008). The idea is to make payments securely in the digital space via blockchain protocols so that the digital currency cannot be stolen or forged. And there is no middleman.
Takeaway #1: Be Aware of “Distractions”
At present, crypto is less of a currency, and more a speculator’s vehicle. Crypto trading. Getting rich quick. The crypto price structures exhibit pumping (trader spikes), and fluctuations like the patterns in futures prices. Authorities have seen evidence of money-laundering. Some crypto exchanges are not registered. On June 25, 2021 Britain ordered Binance, to cease all UK operations immediately. Britain wants to review their records (Binance is the largest crypto exchange in the world).
First Distraction Example
A “Bitcoin Miami 2021” conference was held June 4-5, 2021. The entry fee was about $1000. Some people paid more to obtain “access” to investors. At least seven venture capital companies were there, seeking crypto startups. The numbers suggest that gross ticket sales were about $12 million.
Here are some media statements. People descended on Miami. Flocking to the largest Bitcoin conference in the world. At least 12,000 people. Thousands more watched online. Biggest Bitcoin event in history. The line to get into the conference stretched more than a mile. The mayor of Miami is trying to make Miami a hub for tech and crypto. He’s trying to make Miami the Bitcoin, blockchain and mining capital of the world.
(with excitement! Full standing ovation and the biggest cheers I’ve seen yet)
— erin griffith (@eringriffith) June 5, 2021
Media statements: On the second day of the conference, a man jumped on the Bitcoin Miami 2021 stage and ripped open his suit to reveal the logo for Dogecoin. “Dogecoin to the moon,” he screamed before he was escorted off the stage. Decrypt listed the incident as one of the five weirdest moments at the Bitcoin Miami conference.
The crypto market is still too immature Elon proves it, this guy confirms it. I rest my case
— Tim Brooks (@Brookstone23) June 5, 2021
Second Distraction Example
Dogecoin, a cryptocurrency that was originally created as a joke, has risen to a total valuation of about $54 Billion dollars, which is comparable to the market capitalization of Ford.
Dogecoin will be accepted for an upcoming moon mission.
Takeaway #2: Be Aware of “Constructive Steps“
First Constructive Example
So called constructive uses or seemingly “approved” uses of crypto are meaningless as well. Here are some examples why we think so.
June 9, 2021 (Reuters). El Salvador became the first country in the world to adopt Bitcoin as legal tender.
June 17, 2021 (BBC). The World Bank rejected a request from El Salvador to help with the implementation of Bitcoin as legal tender. The international lender cited concerns over transparency and the environmental impact of Bitcoin mining. The IMF last week said it saw “macroeconomic, financial and legal issues” with El Salvador’s adoption of Bitcoin.
Jun 25, 2021 (Fortune). El Salvador will give U.S. $30 worth of Bitcoin to each adult citizen that downloads and registers on the country’s new cryptocurrency app [who is providing the app?].
Economics #1. Since 2001 the U.S. dollar has been the most used legal tender in El Salvador. The dollar is used because it is STABLE.
Economics #2. From June 2 to June 26, the average value of Bitcoin was about $36,233 dollars. The fluctuations around this mean are plus and minus 12 percent. That is NOT stable. (How will this work out?)
President Nayib Bukele’s “Bitcoin Law” goes into effect on September 7, 2021.
The progress of Bitcoin in El Salvador is a barometer. Other countries will be influenced by what they see.
Second Constructive Example
Elon Musk and Jack Dorsey agreed to talk about Bitcoin at an online event on July 21, 2021, titled “The B Word – How Institutions Should Embrace Bitcoin.”
Here is a selected Tweet from Jack Dorsey on Jun 24, 2021:
The #bitcoin development community above all else.
As more companies and institutions get into the mix, we all want to help protect and spread what makes #bitcoin open development so perfect.
This day is focused on education and actions to do just that.https://t.co/5pxX1LIVVA
— jack (@jack) June 24, 2021
Third Constructive Example
Bitcoin was accepted for payment of a new Tesla until May. Elon Musk said Tesla would stop accepting Bitcoin for car purchases, citing the “insane” amount of energy required to mine the physical Bitcoins. In June, Musk said Tesla would accept Bitcoin when at least half of Bitcoin mining is confirmed to be powered by clean energy.
The Cambridge Bitcoin Electricity Consumption Index reports that Bitcoin-mining operations worldwide use energy at the rate of nearly a hundred and twenty terawatt-hours per year. This energy could power all of Sweden for one year.
Takeaway #3: Consult Reliable Crypto References
One of the early writers on Bitcoin is Laura Shin, who contributed to Forbes magazine. Her one-liner is “Your no-hype resource for all things crypto.” You can follow Laura Shin on Twitter: @laurashin. Or, you can listen to her Podcast. Lastly, Laura Shin has a book out, The Cryptopians.