Will FIAT Currency Hold Back Bitcoin?

The U.S. government will pay $474 billion in interest on its debt this year.

And that's with rates around 1%. Total debt is now $19.845 trillion, and it just exceeded annual GDP.  Their unfunded liabilities top $100 trillion.

Because of this, some might loom they're eventually headed for a financial reset. And that will depend on the whims of bankers and politicians. But as long as we go, we can't picture any long-term (20-year) scenario where the dollar does well.

There appears to be zero chance of cutting federal spending anytime soon. It should have happened long ago, yet the spending seems destined to keep rising until the whole thing implodes.

Eventually the interest on the debt will become unsustainable, and they'll have to start monetizing the debt on a massive scale.

This is not about they'll default on the bonds. It's simply questioning whether the dollars they're paid back with will have much value.

When this happens, they'll have an opportunity to choose a new system. And some people would vote for a cattle-based monetary system over the current one.

But luckily we have Bitcoin.

The rise of cryptocurrencies like bitcoin may prove to be a catalyst that speeds the transition.
Cryptocurrencies offer a path forward to a new and better monetary system. A system where the money supply can be hard-coded. One that doesn't require middlemen... and that vastly increases efficiency.

It's no coincidence that bitcoin is doing very well now. Bitcoin was launched amid bank bailouts in 2009 by a guy who thought the financial system was broken. Fortunately, Satoshi Nakamoto was a genius, and he created a brilliant piece of software.

It's growing exponentially now because people are looking at the current system, shaking their heads and then looking for something else. And bitcoin is transforming the financial world with blockchain because the technology is superior.

Besides, people want this. They want a way to store value and trusted transactions that doesn't suck.
If this crazy monetary revolution does happen, everyone would want to own at least a piece of it.

Cryptocurrency ownership rates are still well under 1%. An even for those who are starting getting position with it, they'll still be doing so extremely early.

Cryptocurrencies - More Than Just Assets

Bitcoin alongside other cryptocurrencies are having a great momentum these days. Investors are piling in, there are stories of life-changing gains, and some countries are looking into crypto-backed currencies.

Even though Bitcoin could be in a bubble, cryptocurrencies are definitely not. They’re simply societies’ next evolution of money itself.

Speaking to the typical financial planner, you would get the impression that our monetary system and its currency are in a constant state.

It is absurd how stupid and ridiculous it is for the financial industry to obsess over how many dollars a baby will need to retire.

The math and model for future retirees are a complete joke that has so many bad assumptions that there’s too many to even mention. The future is happening now, and 2025, 2050, and beyond will look radically different from today.

Specifically with cryptocurrency, we all need to fully appreciate that the money we use for daily transactions has been in a constant state of change and advancements since the beginning of human history.

It’s been a slow grind for mankind to figure out what it can use to transact among one another, and we still haven’t figured it out, with thousands of dead paper currencies and plenty of schemes going on right now from the current central banks that create most of the world’s currency. 

From beans to copper coins, there have been all sorts of things we’ve used for money.

And it’s not as if we’ve mastered it yet…

As recently as the 17th century, Russians were still using animal fur to pay their taxes. In the wilderness of Siberia in the 1600s, it’s even referred to as the “fur rush,” much like California’s 1848 gold rush.

We are all aware of gold and silver’s history, starting with the Lydians’ first gold coins in 600 B.C..
Americans have experienced several versions of currency since 1775. The continental was the first currency, which experienced hyperinflation by the end of the Revolutionary War. This is what led to the Coinage Act and it being written in the Constitution that only gold and silver are legal tender.

We’ve had hundreds of private and state currencies, including the Treasury-issued greenback. We eventually had precious metal certificates, where we could literally trade them in for physical gold and silver.

By the 1930s, gold became illegal for U.S. citizens to own, but the currency was still technically backed by gold and could be redeemed by other sovereign states.

In 1971, President Nixon closed the gold window and created the petrodollar. We’ve seen signs that the death of the petrodollar is happening over the last decade, but no one can safely predict what would replace it, which is one of the reasons it continues on.

Today, we have cryptocurrencies offering up a solution, and for many in this world, being able to transact across borders in the same currency or move outside of a thieving government’s rule make these digital currencies a savior.

Bitcoin can represent a valuable asset in certain regions because it can’t be destroyed or easily confiscated by their local politicians.

And when it comes to the adoption of cryptocurrency, we’ve barely scratched the surface, which is why we see an unbelievable upside in this entire space.

It may be difficult to imagine the world not using dollars or government-issued notes for money, but that’s only because we all live in the here and now.

If we just step back and look at 50, 100, or 200 years, we can see that there is no constant when it comes to what we use as currency.

In fact, changing would be the only thing shock-worthy.

8 Ways Blockchain Will Change The World

The blockchain is today like the internet in the early 1990s, and the investment implications are just as enormous.

The internet changed the way we record and exchange information. It made the flow of communication across the world faster and more efficient. Trillions in value were created.

Likewise, the blockchain is changing the way we record and exchange value. It will make transactions across the world faster and more efficient

Trillions in value will be created. Yet, it’s so early in the game, many people still don’t even know about the blockchain, or how they can profit from it. And that’s creating wide-open opportunities for those in the know.

Remember, the internet was the same in its infancy. Many investors didn’t see its significance—or even know it existed—in the beginning. Then web browsers came along and the internet was quickly on its way to mass adoption.

Early investors made fortunes

 

Today, the blockchain is starting to gain traction.Eventually, these online distributed databases will be as ubiquitous as the World Wide Web. And a new group of early investors will get rich like those at the start of the Internet Age.

A Decentralized Database

 

The blockchain is maintained by thousands of independent computers.These computers are constantly “talking” to each other to ensure the ledger is always valid.

By storing data across its network, the blockchain eliminates the risk that comes with information being held in a central location.

This “decentralized” network is much more secure than databases with central supervision.

(For example, it’s more efficient for hackers to try and break into one central site holding millions in assets than millions of individual computers holding hundreds or thousands.)

The blockchain is also faster, more secure, and more efficient than centralized networks.

That makes it the perfect technology on which to reinvent the financial system…

and the trillions of dollars that move around it daily.

Here are eight ways the blockchain will forever change how we use money

1. Verifying: The blockchain will eliminate the need for you to pay an intermediary

(like a notary) to verify transactions.

2. Transferring: The blockchain will make it easier for you to make payments, transfer money, or buy and sell goods. You’ll move your money faster and cheaper with the blockchain than with traditional wire services like Western Union or MoneyGram.

3. Storing: The blockchain will let you store money digitally instead of using a bank, money market fund, or government security. It could potentially make checking and savings accounts obsolete.

4. Lending: You will be able to make, secure, settle, and trade loans on the blockchain faster and easier than today.

5. Exchanging: Every day, trillions of dollars in financial assets are traded between parties.

The blockchain can cut settlement times from weeks and days to minutes and seconds.

6. Funding: Raising money now requires third parties such as investment bankers,

venture capitalists, and lawyers, among others. The blockchain will automate this process and eliminate the need for third parties. More people will have access to capital than ever before.

7. Insuring: The blockchain supports decentralized models for insurance that can make risk management more efficient. This will lower premiums overall.

8. Accounting: The blockchain makes bookkeeping virtually automatic and instantaneous

while keeping it 100% transparent.

As you can see, the blockchain will revolutionize how you use money. But what folks don’t know is that the blockchain’s impact will extend well beyond finance.

There is a reason blockchain technology is growing like wild fire and it's because we are in the right place at the right time with the right group of people.

What Price Should We Buy Bitcoins?

There's a recurrent question among people:

What price should I buy bitcoins and other altcoins?

Far from any strategy, many don't set price targets. Cryptocurrencies are too new for that, with less than 1% of the world owning any and institutions owning none.

When some people buy a promising cryptocurrency, they're making a bet that it will catch on and become a mainstream technology.

If a decent chunk of world wealth moves into the cryptocurrency space, prices will rise many, many times higher than they are today. A hundred-thousand-dollar value for a single Bitcoin is possible over the next few years. Even a million-dollar bitcoin is possible, though that scenario would likely mean that something bad had happened to the U.S. dollar.

Some simply don't think a "buy below" price makes sense for cryptocurrencies at this point. There's just too much momentum and too much money on the sidelines.

And cryptocurrencies can run like nothing else. Bitcoin, for example, has had some stunning run-ups in its history. It moved from $5 to more than $1,000 in less than two years. That's 200X.

Imagine if we had set our initial "buy under" bitcoin target at $3,400. A few people would have gotten in, but most would not have. And the price of Bitcoin recently passed $15,000. And certainly, many people don't want to be on the sidelines for this bull market.

It's better to try to buy on dips or use dollar-cost-averaging (buying the same amount at a regular interval, be it daily, weekly, etc.) than try to buy under a certain price.

What's a dip? In this market, I'd say a drop of 10% to 15%.

The best time to have planted a tree was 20 years ago. The second best time is now.

Disney Adopting Blockchain

In the fall of 1976, thousands of men were lining up around the block to see The Devil in Miss Jones. As they left the theater, resourceful owners would “upsell” them a $95 VHS recording of the movie.

The film would go on to become the first true blockbuster hit on videotape.

For much of the 1970s, more than half of the videos sold in the United States were adult films. In Germany and the United Kingdom, it was 80%.

It’s no wonder VCR was written off back then as a niche “underground technology."

In its early days, VCR was primarily used to play adult films recorded on videocassettes (like VHS).

That’s a major reason entertainment companies of the day were hesitant to put movies on videotape. Companies like Warner Brothers and Disney agonized about putting their wholesome family movies on devices linked to the smut industry.

It wasn’t until nine years later—in 1985—that Disney took the plunge and released Pinocchio on videotape. And the results were astonishing...

With hardly any marketing budget, Disney sold 600,000 copies. In 1986, Disney released Sleeping Beauty and sold 1.3 million copies.

The 1986 videotape profits from Sleeping Beauty were enormous: Disney estimated they were equivalent to 28 years’ worth of box office earnings.

By 1991, the videotape market had become so well-developed that Disney managed to sell over 50 million copies of Snow White.

In one year, Disney made more money on Snow White than it would make in an entire century from traditional box office releases.

By embracing videotape, Disney cut out the middleman (theater owners) and watched its profits explode.


The Biggest Technology Breakthroughs Start Underground. This isn’t the first time a so-called “illicit” technology has paved the way for mass adoption.

The same thing happened with the internet. In 1999, 80% of all web searches were for adult content. The most profitable websites streamed adult films. But by the early 2000s, adult content searches had dropped to 13%... and the profits were flowing to companies like Amazon, Google, eBay, and Yahoo.

The point is that fringe elements are usually the first to commercialize new technologies. These people serve an important role. They fund the early development of the technology.

Without the early demand (dollars) created by the adult film industry, VCR may have never got off the ground. And the same could be said for the internet in the 1990s.

Disney’s About to Take Another Underground Tech Mainstream. Today, we’re seeing a similar shift in sentiment happening with another “underground” technology.
Cryptocurrencies.

Digital currencies like bitcoin are the payment of choice for so-called “dark markets.” These are websites (like the now-defunct Silk Road) where people can buy and sell drugs—and other contraband—anonymously.

For many years, the No. 1 use of bitcoin—the world’s most popular digital currency— was payment for illegal drugs.

(That’s because Bitcoin transactions are very difficult for law enforcement to track.)

Much like VCR, Bitcoin’s reputation has suffered because of the way it’s been used. But just like videocassettes four decades ago, cryptocurrency technology is proving to be a breakthrough...

And guess who’s helping to bring this “illicit” technology mainstream?

Disney.

This may come as a surprise to you... but Disney is building its own blockchain network.

It can operate directly with Bitcoin. Disney calls it “Dragonchain.”

Among other things, Dragonchain will support bitcoin payments. That’s right. Very soon you’ll be able to go to Disney World and pay for anything you want—hotel rooms, park passes, even mouse-ear hats, and ice cream cones—with bitcoin.

Just like it recognized the power of VCR, Disney is beginning to wake up to the vast, untapped riches that await it by embracing Bitcoin and its underlying blockchain technology.

According to Bitcoin.com, Dragonchain could run numerous operations for Disney parks. The firm could issue “Mickey Mouse” tokens, with additional interoperability with assets like Bitcoin.

Additionally, the corporation could create loyalty points for patrons visiting Walt Disney resorts and theme parks. Or Disney could create blockchain-based programs for its fast lanefeature within Disney theme parks.

The platform could monitor ride times and the length of lines in order to create a more efficient process.

Once again, Disney is blazing a trail for mass adoption of a once-controversial technology. It’s taking bitcoin and the blockchain mainstream.

People And Cryptocurrency

Nowadays, in many countries you can already pay in Bitcoin for various services such as air tickets, meals, etc.

It is clear that all those merchants who have not yet integrated bitcoin into their business are leaving money on the table. And even more, any business who don't use Bitcoin is staying behind while other businesses pass over.

Even independent workers (freelancers) prefer to be paid for their services in Bitcoin or in another high-valued cryptocurrency.

It is ironic to listen to bankers and other members of financial institutions calling Bitcoin and other cryptocurrencies fraud. These are the same ones that caused the last financial crisis and are now trying to advise the citizens !!!

The last to drop his verbiage has been Jordan Belfort, who also calls Bitcoin fraud. The line between morality and dishonesty is very thin.

The powerful always want to have more and monopolize all the financial opportunities for them and their selected, private group. This happens both places: the developed countries and in the third world countries.

For example: Venezuela, a region brutally sunk economically and culturally can be revitalized through Bitcoin and blockchain technology. Unfortunately this does not happen, and the government continue printing paper money without value to devalue their currency (the unfortunate Bolivar) more and more.

However, the powerful of that region use and trade with Bitcoin for personal purposes and interests, closing the opportunity to the poor citizens who can not even satisfy the basic needs.

More people will come out to discredit the power of Bitcoin by taking hold of its volatile feature, which is true, but what they do not yet understand (or perhaps do not want to understand) is that the solidity of any cryptocurrency lies in the community behind it.

And the more people use Bitcoin as a payment method or for investments (trading, etc), the value will continue to grow...  there could be corrections in the price, but predicting their death as these pseudo-experts have said, looks far from reality.

Battle Between Bitcoin And Bitcoin Cash

Apparently, it seems to be a battle between Bitcoin and Bitcoin Cash.

When the Bitcoin goes up, Bitcoin Cash goes down and vice versa. These two cryptocurrencies are trading with each other showing a peculiar pattern.

Unlike other cryptocurrencies like Dash, Ethereum, Litecoin, etc., these two look like to be competing with each other.

Naturally, we can not guarantee that this trend will continue, but for the time being, this is something that must be taken into account.

Bitcoin Cash is very strong. It is the third largest cryptocurrency with a market capitalization of more than 20 billion. Its daily trading volume is very promising ... It is almost 50% in relation to Bitcoin.

One of the most attractive benefits of Bitcoin Cash is that transaction fees are lower than Bitcoin, a positive point to increase the circulation.

Meanwhile, Bitcoin continues to rise, At the moment of this post it is shooting up to $10k per coin.