Sunday, June 20, 2021

Whatever fake currency

You wouldn't recognize this as the same guy described by the CIA through 'Langley':  "Biden has a worthy interlocutor in Raisi" (Bhadrakumar).

My emphasis in red:  ""He who has the gold makes the rules" and the state has the monopoly on force. Bitcoin and other cyptocurrencies are systemic threats to this tried and tested model. Can the state ever tolerate such a threat, or will it have to tame such a 'wild beast'? Is compromise possible without compromising the core values of crypto?

Crypto is a complex topic with a lot of puts and takes; this could be an interview all its own, and so I will only provide a highly abbreviated answer.

First, we already live in a world of many currencies. Nobody considers the Swiss Franc a threat to US economic sovereignty, or the Japanese Yen, or whatever fake currency they're using in Europe these days. What ensures US economic sovereignty? For starters, tax collection in US dollars, which makes it easiest by far to use US dollars generally in the US. Cryptocurrency is not a threat to that, in my view.

We also already live in a world with anonymous, untraceable criminal and terrorist money flows, in the form of, incredibly, paper US currency. There are 12 billion (!) US $100 bills in circulation globally, more than any other denomination, despite the fact you never see $100 bills in daily life; that's because they're the global standard for bad behavior. Whereas cryptocurrency works in the form of a public ledger that can be data mined just like any database; a lot of national security people are actually quite fired up about more transactions moving from paper currency to the blockchain.

Then, if you still want to fight cryptocurrency, there's the nature of the thing that you'd be fighting. Cryptocurrency is math, and code. Numbers, just numbers, stored in computers all over the world. The level of draconian control required to ban cryptocurrency -- bad numbers, numbers that you don't want to exist or move around -- would be totalitarianism on a cosmic scale, far worse than whatever is motivating you to try to ban it.

Finally, the benefits of cryptocurrency are real, from new competition to "too big to fail" financial incumbents, to new jobs created by the explosive innovation in the space, to enormous consumer gain that extends all the way down the economic ladder to the lowest income and most unbanked in our society. So, I expect an uncomfortable but largely stable long term dynamic."

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