Is This How The Dollar Gets Replaced?

Tyler Durden's picture

Submitted by Chris via,

I’m sitting here at my desk, laptop open, 7 browser tabs open, a half dozen documents open, emails popping in every few minutes, Skype messages coming in, and bunch of PDF reports open for review. A smartphone collects calls and texts coming in, and next to this is a Kindle with 3 books I’m reading at the moment. That’s just the technology.

Then I have a fly buzzing around, annoying the dog sitting at my feet. And as I look outside the window, a jasmine bush in full flower attracts bees collecting nectar from it.

Taking it all in it struck me why we are wired for narrow-minded thinking. Why the majority misses some of the biggest changes that have taken place. Changes that have taken place right under our noses.

You see, in order to make sense of everything around us our brain has to simplify it. Thousands of auditory, tactile and visual inputs every minute bombard us. In order to survive we have to narrow down and focus on what’s important. It’s a human trait which ensures survival and it’s been around ever since our grubby-looking ancestors were to be found running from lions in the savannah.

Our brain has to quickly categorize, file, and trash information. It sure is an efficient search and retrieval system. But in its search for efficiency the brain looks at a particular piece of information, goes and rummages around in the back and retrieves anything similar as a reference point.

The more instances of our brain coming up with such reference points, the greater our reinforcement of that particular item or topic. If we’re staring at a strange round-shaped object trying to figure out what it is, our brain searches diligently for information on round shaped objects – baseball, cricket ball, tennis ball… you get the picture. It then attempts to match those retrieved pieces of data with what we’re looking at.

The default in our brain is therefore to something which already exists, or something which looks like something which already exists. It is far easier for our brain to compute this and takes far less work.

Remember the brain is an absolute energy hog, consuming a quarter of your body’s energy even while it accounts for barely 2% of your body weight and it therefore is constantly attempting to conserve energy.

This explains why drastic, revolutionary, disruptive answers to existing problems very rarely come from existing channels or are identified by those who are embedded in the particular sector experiencing the problem.

To prove my point consider that Uber wasn’t conceived of by a taxi driver. Paypal wasn’t birthed by a banker. Airbnb wasn’t the product of hoteliers, and Instagram wasn’t the brainchild of a photographer. All have disrupted industries in their own right and yet none look remotely like the industry which they disrupt.

What Does All This Have to Do With the Dollar and Currencies?

Ask nearly anybody what will replace the mighty greenback and you’ll get a mishmash of politically inspired views. The Chinese renminbi, gold, or an SDR currency are all popular. I’m sure you’ve heard the arguments before.

I submit to you that the future of currency will be none of the above. It will not be a centralized currency. In fact, it may not be one currency at all. It will not be coercive, and it will be transacted on the blockchain and will be market driven.

The dollar will be replaced by asset transfers sitting on the blockchain protocol. This is the world’s largest distributed computing project on Earth. It’s a global payment platform which doesn’t require any centralized authority for its functionality, and it’s as close to incorruptible as anything the world’s ever seen, including Mother Theresa.

New technology is often misunderstood. Anything new and different is initially going to be misunderstood. Well-meaning critics dismiss it together with self-interested critics whose profit stream is connected in some way.

This is true of Bitcoin and its underlying architecture – the blockchain.

Ask yourself why today we use fiat currency and I think there are essentially two main reasons:

  1. We trust it long enough to hold it for periods of time, and
  2. The alternatives aren’t as liquid.

What happens when alternatives start rearing their heads and they don’t require trust. Note: I said DON’T require trust not that are trustworthy. There is a difference. Certain fiat currencies have been trustworthy for brief periods of time but the blockchain provides a trustless system. That solves the first reason why fiat currencies are used.

What happens when you add liquidity to alternatives?

The answer is that market forces take hold and the consumer makes the decision to transact based on what’s best for him. Couple that with frictionless transactions and liquidity can explode faster than Uber grabbing market share of the taxi industry.

I’ve not even mentioned the fact that you can stand in the Sahara desert and transfer an asset to Hong Kong on your smart phone for free, in seconds, and far more securely than any transaction you’ve ever conducted. I’ve not mentioned that the functions of authentication, validation, escrow and delivery are handled seamlessly and for close to zero cost.

I’ve not mentioned that the blockchain is asset agnostic. What this means, and this is important for the dollar, is that if you wish you can trade your 1965 Ford Mustang on the blockchain; and you should, because quite frankly, old cars are horrible, noisy, uncomfortable and bring down the neighborhood. I know, I’ve got a neighbour who stores a gazillion of these horrible things.

Why is this important for the dollar?

In case it isn’t obvious. A world where money is decentralized means a world where nothing you’ve ever seen before will become the new norm and the new norm is unlikely to include a scrap of paper issued by a bankrupt government.

I very much look forward to it.

“We want a whole sequence of companies: digital title, digital media assets, digital stocks and bonds, digital crowdfunding, digital insurance. If you have online trust like the blockchain provides, you can reinvent field after field after field.” – Marc Andreeson

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Latina Lover's picture

"The dollar will be replaced by asset transfers sitting on the blockchain protocol. This is the world’s largest distributed computing project on Earth. It’s a global payment platform which doesn’t require any centralized authority for its functionality, and it’s as close to incorruptible as anything the world’s ever seen, including Mother Theresa."


I wish I could be so optimistic.  The USSA Banksters will create laws to terrorize anyone trying to opt out of their central banking fiat scam.

BTW Chris (Author), if you are reading this, you have already moved up the list for targeted assassination by the CIA/bankster elite.

seek's picture

They'll shut down the internet before they'll allow the existing financial system to be replaced.

The only way it gets replaced is via its destruction -- through collapse, or via more kinetic means.

ebworthen's picture

Good one.  Crypto-currencies are a black hole.  All that energy should be used to hang corrupt politicians and bankers, and to tear down the immoral hegemony; not chase unicorns and rainbows.

DownWithYogaPants's picture

This effete guy and his old car hate.  That's what is killing the USA.  Bunch of effeminate turds

eforce's picture

The bankers will be replaced at some point according to The Protocols...


6. The people, under our guidance, have annihilated the aristocracy, who were their one 

and only defense and foster-mother for the sake of their own advantage which is 

inseparably bound up with the well-being of the people. Nowadays, with the destruction 

of the aristocracy, the people have fallen into the grips of merciless money-grinding 

scoundrels who have laid a pitiless and cruel yoke upon the necks of the workers. 


7. We appear on the scene as alleged saviours of the worker from this oppression when 

we propose to him to enter the ranks of our fighting forces - Socialists, Anarchists, 

Communists - to whom we always give support in accordance with an alleged brotherly 

rule (of the solidarity of all humanity) of our SOCIAL MASONRY. The aristocracy, 

which enjoyed by law the labor of the workers, was interested in seeing that the workers 

were well fed, healthy, and strong. We are interested in just the opposite - in the 

diminution, the KILLING OUT OF THE GOYIM. Our power is in the chronic shortness 

of food and physical weakness of the worker because by all that this implies he is made 

the slave of our will, and he will not find in his own authorities either strength or energy 

to set against our will. Hunger creates the right of capital to rule the worker more surely 

than it was given to the aristocracy by the legal authority of kings. 


8. By want and the envy and hatred which it engenders we shall move the mobs and with 

their hands we shall wipe out all those who hinder us on our way. 

Manthong's picture

“Bitcoin reality check”

That is the attitude of a card-carrying sheep.


TVP's picture

It's fascinating how some like to complain about the system, then as soon as a legitimate alternative arises, they refuse to use it out of fear and ignorance, just like the scared sheep they so disdain.  

Don't bitch about fiat currency or the banking system if you don't have the balls or intellectual curiosity to even investigate a new potential alternative.  

Also, Bernanke even mentioned not long before he left the Fed that Bitcoin represents about 0.1% of all transactions.  So, it's not even on the establishment's radar yet.  And by the time it is....there will be no stopping it.  


ali_baba's picture

Dollar will be replaced by the Shekel. Stop kidding yourselves. Juws however will transact with one another using gold.

Manthong's picture

Oy, I would rather have rubles.

Soul Glow's picture

I have a better one....

The dollar will be replaced by....

Gold!  Why?

Because the dollar took its place, and gold will regain its rightful crown.


Because gold is a tangible asset, can be used as means  of exchange, can be broken up into small and large amounts, and is accepted as payment.

Why do those four requirements matter?


Pool Shark's picture



Money is:

A) A Store of Value

B) A Unit of Account

C) A Medium of Exchange

Gold is all these, PLUS:

1) Untraceable

2) Easily Transportable (1/4 $Million weighes ~16 pounds)

3) Effectively Counterfeit-Proof (Fakes are easy to detect)

4) Cannot be created by keystrokes



Grave's picture

unlike gold, bitcoin is:
- easy, cheap and fast to transfer, secure, verify and granulate
- predictable, limited supply
- efficient and easily exchangeable store of value that is trusted and decentralized

also you can say goodbye to gold as a reliable store of value once:
- we get to asteroid mining, millions of tons of precious metals just lie out there in asteroid belt, talk about unlimited supply
- we get cheap energy source = you can create unlimited amounts of gold using particle accelerators

Grave's picture

educate yourself, you will sound less stupid that way

quartshort's picture

A website does not equal an astroid mining operation. If we are mining for water and gold on an astroid belt we will be largly fucked as a race. You are a tool.

How many billions does it take to send a CAMERA into space? Tell you what, send me an X-type astriod when they become so common that it causes the price to plumment platinum.

Just because math makes Bitcoin "tough" to mine doesn't give those 0's and 1's any more value in my book.


RAT005's picture

The cost of sourcing gold other than on earth will be higher and if pursued will just confirm gold's genuine increasing value. 

Grave's picture

lets see
- few billions needed to get the equipment there
- gets paid off by harvesting a single 500m asteroid
- rake in initial profits
- then oversupply sets in, demand dies, value craters

jefferson32's picture

Gold is a superior store of value. Bitcoin is a superior medium of exchange. That's all there is to understand. That and FOFOA's Freegold.

Harlequin001's picture


FFS man, you're a fucking idiot. You need to do the rest of the bitcoin community a favour and STFU.

Squid-puppets a-go-go's picture

money can retain its definition even as innovation provides an improvement

i trust gold way more than i trust bitcoin. but i gotta admit, gold needs another medium/function to buy some shit in hong kong from the sahara

Demdere's picture

And further, some smart guy will figure out a way of ensuring 2/3 o 5/6 or whatever independent verification sites all support the claim that a picture of a gold coin is owned by X, in the physical posession of Y, and was last certified on such and such adate by such and such an auditor.  You can buy levels and levels and levels of certainty and security.

That is the next level above this clever idea :

That allows you to avoid all kind of scams.  Needs some crypto and substitutes databases of cenralized trust organization for overhead of a block chain. The trick is that individual coins are suddenly not anonymous, which makes accounting fraud harder. You can track every individiual coin.  Those may be owned via blockchain, with lower-cost security at lower levels.  The hash of a speckle pattern associated with the coin, full speckle pattern photo in a file.

Trust will be the resource in shortest supply when things get hard.  Start building your supplies now.

Arnold's picture



(What Would Blythe do?)

Renfield's picture

Captain Debtcrash, good article, discussing the probability of blockchain currency being outlawed, a necessary discussion.

However, outside the scope of the article but also necessary to consider, is the effect of outlawing. How effective is it? Does it lead to outcomes the lawmakers predict?

What effect did the outlawing of alcohol have? What effect is the incremental outlawing of guns having, now and over the past few years? What effect does the outlawing of drugs have? The outlawing of prostitution? The outlawing of 'terrorism'? Marijuana? Smoking? Speeding? Even the outlawing of entertainment downloading? How have populations such as the Chinese responded to 'intellectual property' protection laws? How successful have various governments in, say, Quebec, been in attempts to outlaw English, for example?

You are correct that if the government makes a rule, people probably could not use the blockchain at Wal-Mart or any huge conglomerate, but would that cause the technology to suffer, or the conglomerate? A growing number of people are changing their habits in order to avoid Wal-Mart (and big media, big pharma, big banks, big food, big energy, etc.) already. Would outlawing blockchain reverse this trend, or accelerate it? Would it cause more people to shop at Wal-Mart, or would it be another reason for people to reject Wal-Mart? Is outlawing a chaotic technology going to cause more people to turn toward central control, or away from it?

If banksters cannot find a way to skim and siphon, would this cause more or fewer people to risk using bitcoin? How would populations outside the control of 'western' governments respond to such regulation? (See, for example, the growing momentum of alternative systems to SWIFT and currencies alternative to the USD, which are spearheaded by non-'western' governments. The momentum of these alternatives grows with every regulatory burden imposed by 'western' governments, such as FATCA.)

You could discuss this for years and not come to a conclusion, but I think it's safe to say that the outlawing of anything is going to be unpredictable, and could certainly serve to make the outlawed thing spread farther and faster than before; and that's not even considering the high cost of enforcement, on bankrupt governments already stretched by farflung invasions and massive surveillance.

Finally, drastic means could be employed to stop the blockchain ('shutting down' the internet), but even that would be only a temporary solution. The government and banks depend on the internet, just as much as the population does. It is far too simplistic to wave away this technology with 'the government can make a rule and that will stop it for good'. The government cannot stop technology by creating new rules - government rules are rarely effective at stopping anything, although they certainly can change things in unpredictable ways.

All this to say, a reality check is fine to begin the discussion, but the article only begins it. That reality check might turn out more optimistically for bitcoin than the article implies. As a new technology spreads and evolves, simplistic pros and cons become ever less useful.

PS: I'm still agnostic on bitcoin until it's been around longer and is in wider use, to decide whether I can trust it or not. But I don't see gov regulation as a strong argument pro or con b/c that could go either way.

Captain Debtcrash's picture
Captain Debtcrash (not verified) Renfield Dec 20, 2015 8:38 AM


You make some good points on prohibition not working in many cases.  I do believe that prohibition works in some cases and not at all in others.  For Alcohol, and marijuana it doesn't work at all.  for the most part it does not work for prostitution, and I believe it would only be partially effective for guns.  But for money, and the phycological reaction around money, prohibition absolutely does work and is the basis for Greshams law.  In the absence of government intervention good money will drive out bad money, with strict intervention bad money drives out good.  Time will only tell if prohibition will be effective with bitcoin, but I'm fairly sure it is coming.  Also remember that the value of bitcoin, even more so than precious metals, lies in its utility as a medium of exchange and if it loses that usefulness, it's value will likely drop. 


I do own bitcoin, but mostly as a trade.  Bitcoin has done spectacularly well and has been very correlated with monetary and banking crisis throughout the world.  If you believe. as I do. that the mother of all currency/banking/financial crisis will occur over the next decade there may be a window after which bitcoin has skyrocketed in response to that crisis, but before governments move to outlaw it, to sell part of a position making huge profits.  I will try to take advantage of this window, but I am expecting to hold a portion past it, in case the believers are right, and prohibition is ineffective. Good luck!

dchang0's picture

I agree that this is exactly how they will shut down Bitcoin. It is the same way they'll ban and confiscate guns. They'll make a few high-profile examples out of people, and then the rest will be forced to choose to "voluntarily" turn their stuff in or switch to the underground.

Many will switch to the underground, but the vast majority will comply. They'll weigh their life situations (got a family, got some life savings saved up that they can't let go of, addictions, or a lifestyle they won't sacrifice) and choose to comply.

But at the least the gun-owning patriots have a chance at hiding their guns. A home gunsmith can build a zip gun or a stamped-receiver gun fairly easily and hide it away without anyone ever knowing. Bitcoin has that damned PUBLICLY-VISIBLE blockchain. The gov't can eventually track down every single participant if they are willing to put in the effort. But they don't have to track everybody down--they just have to pick a handful of people to make an example out of.

Remember, the gov't doesn't have to have perfect control. They merely need "good enough" control for certain ruling persons. If a dictator can rule for his lifetime and die of natural causes, he got it good even if there were numerous rebels plotting his assassination all his life.

Think of it like a Ponzi scheme. Chavez got it good. Maduro is going to eat the consequences of Chavez' dictatorship. So Chavez won. The Chinese Communist Party is the same way. Earlier party leaders got it good. Later party leaders will suffer when their control falls completely apart. China's so large they could never attain any real measure of control anyway, but they can each do well enough by their own standards. The local Communist Party official, while only one step above the peons, is still happy to be one step above the peons.

Thus, the war on drugs, guns, alcohol, prostitution, whatever doesn't have to succeed. It just has to be believable enough of a war that they stay in power and are supported by enough taxpayers to live the good life.

JustUsChickensHere's picture

Far more likely than a successful world wide ban of Bitcoin, is that some ongoing equilibrium is achieved. A point where the diminishing returns of the costs of supressing Bitcoin outweigh the damage it could do to the entrenched interests.

That would leave Bitcoin as minor currency in the world, with attributes that are very useful in some circumstances. Useful to the oligachs too.... 

How large is that 'minor' role? - an interesting question. That will determine the eventual stable exchange rate that is used.

One point to consider is that the 'pricing' of the exchange rate should probably mimic the way we think about gold. We do not normally think about gold in 'USD per tonne'. We use 'USD per Toz' as a human centric practical approximation for daily use.

I suspect we will stop talking about 'USD per Bitcoin' ... more likely 'USD per bit' (bit is the new term for uBTC).




sleigher's picture

"They'll shut down the internet before they'll allow the existing financial system to be replaced."


I thought that too, but doesn't much or even most of the existing financial system depened on that same internet?


highandwired's picture

If they shut down the internet, everything will come to a screeching halt.  Not having access to Bitcoin will be the least of your worry at that point! 

seek's picture

It depends on banks (and banking terminals) being able to talk to banks. A relatively small set of firewall rules distributed nationally/globally would let that happen while preventing other traffic.

As well, plenty of banks have private connections -- hell, HFT is dependent upon completely private low-latency networks in order to exist.

Demdere's picture

I am in full agreement with the 2 replies above me.

It is an additional argument why they can't tie down the net if there is any component outside of it. An internet circuit is an ephemeral thing. The light-wave it rides on is a variable, and the sequence of switches yet another.  Add in a FO or radio link over our back fence and hard dries couriered from town to town (Google for the NKorean examples, enlightening) by kid's bicycles, it will be pretty hard to shut down a modern communications system, once people expect better.

Every step to do so has cut our Status Quo's authority and legitimacy in half.  How many halvings do they think their reign can endure.

Israeli-Neocons are the existential threat to America. Patriot II was their Enabling Act.

They have begun a coup.  Join or die, will be our choice. 

Recall the videos of the Tsunami waves rolling in?  Events have momentums. Who knows.

But better talk up 9/11, the False Flag Operation. Ask anyone who challenges you why they would believe the very entity that we all distrust? If MSM says "Crazy conspiricy theory, only nutcases believe", ask why they believe anything MSM says. MSM learly abandoned ordinary America long ago, consider the treatment of Sarah Palin. and what I predict to happen again :

In fact, 9/11 is the best case for a rather major conspiracy in our government, the Deep State, by definition. The Architects and Engineers for 9/11 Truth are a good place to start, anyone who watches is convinced.  If they aren't fade away, there is a problem.  Measuring people against reality is a good security check.

Be proud, the evidence validates us and discredits them.

One of the big and important things we see in these many examples is how controlled our minds were, just a bit ago.  Wrong questions, wrong focus, wrong people imposing the wrong solutions.  We have to stop doing that to ourselves.

The other side to what we all see on this side ot the information flow, must be a lot of elites getting nervous. I bet Obama's "I am the only thing that stands between you and pitchforks" was a good line, I bet it got repeated a lot at future fundraisers.

It would explain the continuous buildup of police state and formal powers of a police state.  Every new "Hate Those Other" campaign, another schism in the body politic.  By our hatreds, they divide us.

Arm your neighbor.

Play negative sum games and risk loss, or positive-sum and everyone at least not-lose?  How hard is this?

ali_baba's picture

Israeli-Neocons are the existential threat to America

America is lost. The juden are a threat to the all of humanity.

U.S was just a vehicle to build and nurture Israel. The U.S/European juws will move on to Israel but they will not leave the U.S intact.... too much of a threat to Israel when the populace realise what has been done to them. U.S will be stripped down and split up to resemble the middle east as Israel rises to take it's place as the only superpower in the world. Then it's just a wait for the anti-christ.

Demdere's picture

You should not allow yourself to have opinions, I think.  I cannot see how that opinion can do anyoye any good.  Your opinions should improve your prospets for a happy family, not decrease them.

Escrava Isaura's picture




seek, They'll shut down the internet......

Without the “Global Reserve Currency” dollar Americans couldn’t afford what they have.

American workers couldn’t buy what they produce.


You are right: Kinetic means. Then, dollar collapse.


But, others will go down first. Perhaps, Euro.


I think Japanese yen will stand.   


Demdere's picture

Nothing will stand. For heaven's sakes, this is not a mere very major market correction, this Tsunami coming at us.

No, No.  This is the end of an era, those once-in-a-thousand-years events that happen every fw hundred years.  Things are accelerated in modern history, we must infer. Our scum of society have reached its highest powers in much less time than the last cycle.

The side-effects of historical processes are interesting, don't you find?

Everyone better figure out we are all, every one of us, deeply the same human, or the people who so want to own us, will.

The very < long list of words denoting sly-of-the-sly, leader-of-sewer-rats, and other marvelous ethnic expressions of great evil > will burn down the world rather than lose.  That is their final negotiating position in any evolutionary power game, you know, the 'no limit' raises kind of games?

How about we nip this game in the bud on some fall weekend soon?  Plan on getting the crops in, etc.  I bet they would run.  All we need are web sites with "petition-like devices", for example "My signature to this document signifies that I have puzzled through a very plausible attack on < insert critical infrastruce, crucial to modern civilizatiion here >. I am not telling you or anyone else what it is, we all want our own secret to suprize you.  Preapparedly yours, X"

How many million signatures would it take to convince them that thier various critical infrastructures would not likely survive, and that understanding to leaking into the world's understanding, and we correct the course of the political class toward our ruin?

I don't want to be a rabble-rouser, but events force me. our position is still weak, so do no harm to people's persons. We must make our takeover gentle. That is a powerful goal, and I think we should think about it. I think we are being violence.  We are the powerful side, here in anti-gov land, we can wait a bit.  But keep preparing, they have been able to up the decibel level on the propaganda in every one of the previous breakouts of public opinion.

I think they are losing in too many dimensions, and so something big has to happen, or Israeli-Neocons are toast and Israel is seriously scorched and the name Jew no longer so lustrous, very bad for everyone, make no mistake.

So how do we think our way out of this, oh rational elders of our world's village? Tell us your sagest councils, the cautions you have lived by.

As we all love our civilization so much, we individually agree to live and let live, and love thy neighbor as thyself. Self-discipline always turns out to be such a small price to pay for our recent levels of civilizaiton, in historical retrospect.

We could short-cut the standard historical evolution, not being bound in time and space as populations were before, bereft of information but wha our rulers told us.

Smart folks.  In our intrests, and no BS about special kinds of people in any direction at all.  We are all just people, and if you can't get that, you really should distrust your own opinion, so many differenrt cultures have agreed on a few base wisdoms. Oh, you don't know that ?

If we don't start thinking and fixing this in our minds, they will eat us alive, one social grouping at a time.  COINTELPRO within the media.  What else reason is there for all of the craziness? Really, the reasons can't be as stupid as they appear, Americans are not that dumb.


OceanX's picture

"...shut down the internet"

Here are a couple of pointers: 

self routing

packet radio:



cornflakesdisease's picture

The dollar will collapse as soon as we run out of zeros.

OldPhart's picture

That bit about transferring money in the middle of the Sahara with your SmartPhone...I don't have a smartphone, I have a taliphone.  A pay by the minute, toss away, flipphone that's one step up from the previous one with a dial.

I don't understand bitcoin, or the blockchain, I think it's due to my era that I'm not mentally flexible.  Nor do I understand how it would withstand a simple EMP or Government edict.  How can an electronic fiat surpass an 'in your hand' fiat, any more than I can understand how an 'in your hand fiat' can surpass an 'in your hand' solid metal asset.  (Unless it's full faith and credit in all debt public or private.)

I'm not a wealthy guy (at least in dollars available).  I can purchase a pound or so of silver fairly easily, and could probably start to convert silver into gold now.  Those three tenth of an ounce gold eagles seem so insignificant next to a full ounce of silver eagles.  And that tenth of an ounce platinum eagle mocks me everytime I see it.  My funding simply precludes any significant gold or platinum purchase.

I have a deep seated feeling that Goobermint is going to kill bitcoin, one way or another.  Andthen go after those that had it and those that traded with it.

There is no fucking way our war criminal government is going to allow a competing currency within it's borders.  At present, bitcoin is small potaters. It's an annoyance, and so far, has amounted to little more than hype.  But the moment it becomes even a hint of a threat is when it's completely shut down.

agent default's picture

Just a quick question.  If money is decentralized and pretty much everyone comes up with their own blockchain, how do you intend to back the value of your coin, and what sort of exchange mechanism will this require?  Will there be a reference coin?  Will it be a tangible asset underlying the coins?  Bitcoin type currencies are just a fad, the moment you look under the hood, they are just a toy for impressionable kids.  Now sit back and wait for all the Fonestars to come out lecturing us about their techno lala land.

highandwired's picture

The markets you are asking questions about already exist in the alt-coin universe

lincolnsteffens's picture

Smart phones are government spy equipment. Why would I want to use these to execute a payment transaction let alone own one. I use cash without the constant distraction of the glowing attention capture screen. I'm not on call. Where I go and what I buy is my own private affair unless I pay by check. All these electronic devices are expensive.

Why would I trust a system I can't touch that is under the whim of electron behavior and hackers.

highandwired's picture

You can certainly use "smart phones" as a way to pay for something with Bitcoin but you have to remember that paying by "smart phone" is not the only way.  Besides, it's kind of hard crossing borders with a bunch of CASH all over your pants.  Might draw attention if you know what I mean...

nomofiat's picture

it's backed by it's hashing power. 

it's like an online computer army defending the blockchain.

do you have such an army?

fiatliberty1776's picture

With over 100 elements on the period table why has man throughout history choosen gold and silver to act as money? Because it has the values that make it best suited for it.  It is the same in cryptocurrencies but instead the value is derived from the economics, security and other aspects of the computer code that enforce the rules of how it works not the physical characteristics.  Maybe you will find one that interests you, maybe not...but its still an option not available before to not use debt based filthy government fiat.

JustUsChickensHere's picture

Things have atttibutes not values. People place the idea of value (to them personally) on these various attributes. That leads to different people having different views on the value of anything.

Gold, Silver, Bitcoin (food) etc all have attributes, and for PM's and Bitcoin, some of the attributes overlap. The differences lead to each being better for different use cases.

Gold - great for long term (centuries) store of value - not useful (in the West) for most trading transactions.

Silver - long term store of value too, but also useful for medical and engineering applications

Bitcoin - better than Silver and Gold for long distance transactions... not as good for store of value


See? differing attributes lead to differing suitablity as tools for different tasks.


But a good tradesman learns how to use many tools, and which is best for each task at hand.


Diversify your currency and monetary tools.

Urban Redneck's picture

The CIA/bankster elite couldn't give a shit about someone so uninformed as to claim the functions of authentication, validation, escrow and delivery are handled seamlessly and for close to zero cost by a blockchain.  I guess the window in his parent's has a jasmine bush planted near it.

MaxMax's picture

OK a 1965 Mustang isn't exactly my cup of tea, but I can appreciate it.  I almost bought a Mustang 1968 Boss 429 years ago - I really FU because I could have made the deal on a rotissere car for $27K but I wanted to pay $25K.  WTF, does the author drive?  A 2013 Ford Taurus?  Sure, that is a great car.  Starts up, inexpensive, gets you to work.  But where is the fun?  Has the author ever been in a big block Camaro?  Buick GSX? 442?  Chevelle with a 4-speed?  Jag XKE?  Does he have any idea what a locking differential is?  Has he ever heard of Baldwin Motion, Copo, Shelby, Lakewood, Cherry Bomb, Lengenfelter, Shelby, real Hemi's, Keith Black, Falconer, Don  Aronow and 100 more?

Are these cars old, noisy and uncomfortable?  So what?  They have passion, style and fun.  I have a 1968 Camaro with a twin supercharged intercooled (20 PSI) 540 CI motor with a dual disk centrifugal clutch going through a Lenco 5 Speed trans with a Ford Detroit Locker differential with coil overs, full roll cage, EFI, traction control, parachute and, yes, street legal plates.  Impractical?  Of course!  Fun?  Hell, yeah.  Not my daily driver, but that's another story.

jusman's picture

Yeah, well, in full mid-life crisis I got the last Trans-Am produced (in silver - called it the Silver Bullet).  Loads of fun the summer I lived in St Louis - but when I moved back to Montreal, there was this little problem with snow!  So after the Trans Am got stolen from work (was there in the mornng when I parked it - gone in the afternoon when I left work), I got a Subaru WRX (4 wheel drive - a blast to drive and good in winter).  On a business trip, I left it at the airport, and it was gone when I got back.  So on to boring cars I am afraid as I don't have the funds (nor the parking space for toys).

Re the article, yes, Bitcoin is an interesting alternative, but it IS DEPENDENT ON THE INTERNET!  And that is one of the easiest things to have shut down/controlled.  Gold on the other hand is tangible, hideable, relatively scarce....

And countries OTHER than the first world seem to be buying up a lot of it.  The signs are there I think (as the price continues to drop....).  I have roughly 5% of my investments in gold bars at this point.... 

I Drink Your Milkshake's picture

You certianly would have fucked up buying a '68 Boss 429 because Ford didn't make a Boss 429 in '68.

Personally I think vintage cars are a lousy investment. Very fickle market. As the years go on the people interested in these smog bombs will drop off and one day someone's going to be left holding the bag on a $300k 1970 Dodge Challange R/T convertible. Camel jockeys aren't blowing their allowance on these things, they'd rather lease a Bugatti Veyron for a week and over-rev the shit out of it in a Beverly Hills street race and drop it off at the dealer still smoking on the way outta town.