Is This The Global Elites' Secret Plan For Cryptocurrencies?

Tyler Durden's picture

Authored by James Rickards via Daily Reckoning blog,

Interest in Bitcoin is red hot at the moment. It’s impossible to open a website, listen to a podcast, or watch a video in the financial space without hearing about the meteoric rise in the price of Bitcoin.

Maybe you know a “Bitcoin millionaire” who bought five hundred Bitcoins a few years back for $50,000 and is now sitting on a Bitcoin fortune worth over $2,000,000. It’s true, those people actually do exist.

Yet the crypto-hysteria is distracting you from a scary truth no one is talking about.

There is every indication that governments, regulators, tax authorities, and the global elite are moving in for the crypto-kill.

 

The future of Bitcoin may be a dystopia in which Big Brother controls what’s called “the blockchain” and decides when and how you can buy or sell anything and everything.

 

Furthermore, cryptocurrency technology could be the very mechanism used by global elites to replace the dollar based financial system.

In 1958, Mao Zedong, the leader of the Communist Party of China and China’s dictatorial leader was confronted with demoralized intellectuals and artists who were alienated by Communist rule. As a policy response, he declared a new policy of intellectual freedom.

Mao declared, “The policy of letting a hundred flowers bloom and a hundred schools of thought contend is designed to promote the flourishing of the arts and the progress of science.”

This declaration is referred to as the “Hundred Flowers Campaign” (often misquoted as the “thousand flowers campaign”). The response to Mao’s invitation was an enthusiastic outpouring of creative thought and artistic expression.

What came next was no surprise to those familiar with the operation of state power. Once the intellectuals and artists emerged, it was easy for Mao’s secret police to round them up, kill and torture some, and send others to “reeducation camps” where they learned ideological conformity.

The Hundred Flowers Movement was a trap for those who placed their trust in the state.

It was also a taste of things to come in the form of the much more violent and comprehensive Cultural Revolution of 1964–1974 in which all traces of Chinese bourgeoisie culture and much of China’s historical legacy were eradicated.

Something similar is going on with Bitcoin and the Distributed ledger technology (DLT) today. Governments have been patiently watching blockchain technology develop and grow outside their control for the past eight years.

Libertarian supporters of blockchain celebrate this lack of government control. Yet, their celebration is premature, and their belief in the sustainability of powerful systems outside government control is naïve.

Governments don’t like competition especially when it comes to money. Governments know they cannot stop blockchain, in fact they don’t want to. What they want is to control it using powers of regulation, taxation, and investigation and ultimately more coercive powers including arrest and imprisonment of individuals who refuse to obey government mandates with regard to blockchain.

Blockchain does not exist in the ether (despite the name of one cryptocurrency) and it does not reside on Mars. Blockchain depends on critical infrastructure including servers, telecommunications networks, the banking system, and the power grid, all of which are subject to government control.

A group of major companies, all regulated by government, have announced a joint effort to develop an open-source blockchain as a uniform standard for all blockchain applications. The group includes JPMorgan, Wells Fargo, State Street, SWIFT, Cisco, Accenture, the London Stock Exchange and Mitsubishi UFJ Financial. That’s not exactly five guys in hoodies working in a garage. That’s a sign of the corporate-state consortium taking over.

An elite U.S. legal institution called the Uniform Law Commission, that proposes model laws intended for adoption in all fifty states, has released its latest proposal called the “Uniform Regulation of Virtual Currency Businesses Act.”

This new law will not only provide a regulatory scheme for state regulators, but will also be a platform for litigation by private plaintiffs and class action lawyers seeking recourse against real or imagined abuses by digital coin exchanges and facilities. Once litigation begins, anonymity is the first casualty.

Cryptocurrencies and the Super-Elites Plan

Consider the following additional developments:

On August 1, 2017, the SEC announced “Guidance on Regulation of Initial Coin Offerings,” the first step toward requiring fundraising through blockchain-based tokens to register with the government.

 

On August 1, 2017, the World Economic Forum, host body to the Davos conference of global super-elites, published a paper entitled “Four reasons to question the hype around blockchain.”

 

On August 7, 2017, China announced they will begin using blockchain to collect taxes and issue “electronic invoices” to citizens there.

Perhaps most portentously, the International Monetary Fund (IMF) has weighed in. In a special report dated June 2017, the IMF had this to say about blockchain:

“Distributed ledger technology (DLT), in particular, could spur change in the financial sector. …. DLT can be categorized as “permissionless” or “permissioned” depending on who can participate in the consensus-driven validation process. Permissionless DLTs allow anyone to read, transact on, and participate in the validation process. These open schemes (that underlie Bitcoin, for instance) could be very disruptive if successfully implemented. By contrast, in permissioned DLTs, the validation process is controlled by a pre-selected group of participants (“consortium”) or managed by one organization (“fully-private”), and thus serve more as a common communications platform.” (emphasis added).

IMF releases require expert translation because they are never written in plain English, and the real meaning is always hidden between the lines. But, the thrust of this report language is clear. The IMF favors “permissioned” systems over “open schemes.” The IMF also favors control by a “pre-selected group of participants” or “one organization,” rather than allowing “anyone” to participate.

This paper should be viewed as the first step in the IMF’s plan to migrate its existing form of world money, the special drawing right or SDR, onto a DLT platform controlled by the IMF. In time, all other forms of money would be banned.

These and other developments all point toward an elite group including the IMF, JPMorgan, the Davos crowd, the IRS, SEC, and other agencies converging to shut down the existing free-wheeling blockchain ecosphere, and replace it with a “permissioned” system under “consortium” control.

Big Brother is coming to the blockchain.

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Croesus's picture

Big Brother is coming to the blockchain.

Yup.

nope-1004's picture

But... but... "anonymous".

Creepy_Azz_Crackaah's picture

"The future of Bitcoin may be a dystopia in which Big Brother controls what’s called “the blockchain” and decides when and how you can buy or sell anything and everything."

Let that sink in...

evoila's picture

Cryptocurrencies will only work once a complete end-to-end payment/banking network is established. The problem is they'll pass a law saying you have to declare any such accounts, and at that point they'll either get you or you better hope for your life that there isn't a panama papers event.

Pinto Currency's picture

http://www.zerohedge.com/news/2017-07-22/pippa-malmgren-talks-bitcoin-re...

There was a report going around the Internet recently about some guy who made $200 million bucks trading on Ethereum in a month, and the question was who will tax that. The answer is nobody. That freaks governments out to say the least, particularly given their debt situation. So I think this is a huge, huge thing, and all investors have to think very carefully about it. I will say one last thing about it. You have got to get familiar with quantum computing, and there is loads of stuff on the net about it. But the reason it matters is because of the speed at which you can process information. We now have quantum computers. The Chinese apparently have the fastest. There is D-wave out of British Columbia, but basically you can break a block chain password or a Bitcoin password in like less than a minute if you have a quantum computer. The question is who is going to have them, and the answer is mainly governments but big corporations are buying them like crazy. Volkswagen just bought one. We are going to see major corporations buying that computer power.

tmosley's picture

Like that time barcodes turned out to be the mark of the beast.

Pinto Currency's picture

It's already over.

http://www.zerohedge.com/news/2017-07-22/pippa-malmgren-talks-bitcoin-refugee-crisis-and-plunge-protection-team

There was a report going around the Internet recently about some guy who made $200 million bucks trading on Ethereum in a month, and the question was who will tax that. The answer is nobody. That freaks governments out to say the least, particularly given their debt situation. So I think this is a huge, huge thing, and all investors have to think very carefully about it. I will say one last thing about it. You have got to get familiar with quantum computing, and there is loads of stuff on the net about it. But the reason it matters is because of the speed at which you can process information. We now have quantum computers. The Chinese apparently have the fastest. There is D-wave out of British Columbia, but basically you can break a block chain password or a Bitcoin password in like less than a minute if you have a quantum computer. The question is who is going to have them, and the answer is mainly governments but big corporations are buying them like crazy. Volkswagen just bought one. We are going to see major corporations buying that computer power.

Manthong's picture

 

The “crypto-kill”…..

I hope Max and Stacy get out at the top.

jbvtme's picture

when i look at the negative effect that bitcoin has had on the price of gold, i have to figure it's "their" baby.

Mango327's picture

Whenever I encounter something that I don't understand, I usually just assume it's a massive conspiracy that's going to kill us all in a brutal and bloody state Holocaust. It's easier than doing research.

We should all fear the state cyber patrol, look at the hulking behemoth they've created with the Obamacare website. Resistance is useless!!

Doña K's picture

REPOST:

If you can sell a "pet rock" and become a millionaire, then you can definitely sell bitcoin to the sheeple.

If you can buy Manhattan for trinkets, then you can sell bitcoin.

If you can tell people that there is a country named Burkina Faso and the capital is Ouangadougou and the laugh at you, you can sell bitcoin.

If you can tell peole that Budapest is actually two cities on either side of the Danube river called Buda and Pest and they say "Yea right" You can sell them any coin

If you can tell people that -40 degrees F is the same as -40 degrees celcius, and they say to you "impossible", you can sell them anything.   

If you can sell Obamacare to people relying on the stupidity of the American voter, then selling bitcoin is a walk in a park.

 

Place your bets

Eager Beaver's picture

Hahaha! Perfect. Would you like to buy a Bitcoin, or a pet rock? I have lovely samples of all for sale, the rocks come in silver and blonde! :)

wulf's picture

Year 2020

Go for a coffee at starbucks

Chad is behind me in the line.

My turn to order

"I-ii--w-want to order a latte, medium size ....and I want to pay with bitcoins, please."

Sorry???

ehhhh....B-bb-bitcoins

The cashier gives me a disapprove look

"Ohh yeah...right...that weird money" - Which kind of bitcoin? We only accept bitcoin classic, bitcoin cash, bitcoin money, bitcoin uber, and new bitcoin

My hands start to sweat

- Bitcoin classic please

She pulls out an Ipad and start to convert USD to BTC

Sights...Ok sir that will be 0.0000000015 btc.

scan the QR code

electrum wallet informs me that I have to pay 0.01 BTC as transaction fee

proceed to pay

"Thanks you sir...now I have to remind you that we have to wait for at least 3 confirmations on the payment....it will take about 5 hours"

"You can wait on the couch over there..."

Chad proceeds to pay for his order

"I will pay with my golden premium ultra deluxe platinum VISA"

LOL....no-coiners....when they will learn?

The cashier informs Chad that he has a 15% of discount for paying with his card and he also accumulates point for airplanes tickets.

Transaction takes 2 seconds to confirm.

Chad leaves

After 3 hours of waiting for confirmations, I get hungry

I want to buy something to eat, but I realize that I dont have fiat or bank cards and I cannot spend more bitcoin since I have a cat to feed at home

after 50 more minutes I am able to go home.

Still cannot understand why crypto isn't so popular

I laugh at no-coiners. Feels fucking good to be an early adopter using the money of the future...

 

ET's picture

There will always be a time and place for physical money and commodity money.

I enjoyed reading your story. I had a good laugh.

Eager Beaver's picture

A little far-fetched, overly dramatic, and not a very plausible ending. Pulp, at best. Why wasn't there a whore, or a drug dealer involved? Bland and weak.

More likely I use my MasterCard or Visa debit card at any POS in the world to spend digital assets from a blockhchain that has alraedy been counted, verified, and vetted as belonging to me by a trusted third party. When I go to the POS, I swipe, tap, plug, whatever at the device with my card, and the transaction is conducted in whatever the local fiat currency is, instantly, without confirmations on the blockchain. My account is debited that amount of whatever coin I choose to liquidate, and it is moved into the general asset pool of the trusted third party who settles my transaction using the Visa / MasterCard network with all of it's speed and effeciency.

I walk away with my latte in 5 seconds, never having owned a piece of your fiat shit coin.

 

tmosley's picture

>2020

>Starbucks still existing

>Being staffed by anything but a robot

>No lightning network

>People paying with credit cards get a discount to cash

0/10 Try harder. 

Mustafa Kemal's picture

""I-ii--w-want to order a latte, medium size ....and I want to pay with bitcoins, please."

Sorry???

ehhhh....B-bb-bitcoins

The cashier gives me a disapprove look

"Ohh yeah...right...that weird money""

wulf, your example works well Today. In 2020, if it is still alive,

all will know of it and maybe many will have some of it. As for buying coffee with it, I think I will use LTC or something else. No problem.

BennyBoy's picture

 

Next elite idea: FraudCoin!

Rhetorical's picture

Steve is in line behind you. Steve pays with OMG. With over a billion possible transacitions a second due to Plasma ,which is even faster than VISA , Steves coffee is paid for in 1 second. 

I use the proceeds from my staked OMG to help the bankers daughter pay her college tuition in while we're in tahiti.  

Thanks Steve.

Reginald Blome's picture

There are dozens of debit cards that allow you to spend your crypto

DownWithYogaPants's picture

Uh well no.  Quantum computing has barely been shown to be real.  It cracks a very limited number of bits.  Will be a couple of decades before it's a real thing.  

tmosley's picture

That's great, except that there are quantum-resistant algorithms that exist already, and can be slapped onto coins that don't have it at any time.

Come back when you have a paper describing the use of such a computer to break SHA-256. THEN it will be actual news. If only briefly. 

old naughty's picture

always wondered the introduction of communism into the middle kingdom (early 20C) was the mean to an end...

knukles's picture

Everybody should just calm the fuck down.
We're in Tulip Mania Land.
Do whatever you want. 

Yukon Cornholius's picture

I'm thinking of trading in some BTC in order to buy some steel to help protect my hard assets.

ET's picture

To combat the German submarine threat, computers were used to decrypt the most difficult methods of encryption.

Highly classified secrets at the time in World War II.

Nobody knew about it except for the chosen few.

yomutti2's picture

Maybe I should just post this link everytime I see a whckjob article:

 

https://www.theatlantic.com/magazine/archive/2017/09/how-america-lost-it...

 

Consuelo's picture

 

 

Why?   Who here is going to bother reading it?   A few sentences - or even words in, the tone of the article and left-leaning bias of the author becomes painfully evident.  

Here, lemme distill it down for ya:

It's a sophistry-laden hit piece on Trump, masquerading as an independent viewpoint.   Nothing more.

Done.

 

 

TheReplacement's picture

You should just say, 'It's the Atlantic'.

Fewer words, same points.

Pure Evil's picture

Maybe you should, everone here associates you with being a whackjob anyway.

Solosides's picture

Trying to break SHA-256 encryption with a quantum computer is like trying to fix your cars engine with a garden hose. Two completely different things in completely different worlds

Wrenching Away's picture

I wonder if any of the people who say "But Quantum computing!" could actually explain what one is.

Solosides's picture

The people that build the quantum computers cant even explain exactly what the hell they are doing. I like Clif High's analogy where he likens it to an electronic voodoo ritual.

Bendromeda Strain's picture

Again, why would someone who is that far ahead even wish to explain it to you?

tion's picture

Gotta know your jurisdictional exposure and follow the letter of the law as it applies to you, nothing more nothing less. If you're trying to play a game you don't know the rules to, expect to not do so well.

sessinpo's picture

Everything gets taced eventually. It's just a matter of how. If the government can't tax the consumer, then it will tax the producer.

Government always controls the resources.

caconhma's picture

Do you really expect that zio-Banking Mafia will tolerate competing with US$ cryptocurrencies unless they control them? 

nizeoni's picture

they won't tolerate, but decentralized blockchain is the future. It will never go away. It will keep coming back. If not bitcoin, etherium or even IOTA, maybe something else.

But it won't go away. Get used to it.

ExplodingEntropy's picture

Ya know, after you send money via ethereum and trade with it youll realise the appeal

JamesBond's picture

The IRS is the most powerful entity in the US government.

tmosley's picture

Then they are no match.

Consuelo's picture

 

 

They may be one of the most powerful Arms of .gov, but they're not sitting in the cat-bird seat by any stretch.

King of Ruperts Land's picture

Eliminate the IRS. That would truly Make America Great Again.

Mustafa Kemal's picture

I heard a joke from Pippa Malmgren the other day. She said

the NSA is the only branch of the federal government that actually listens

El Oregonian's picture

If you can't hold it, it ain't yours.