Cryptocurrency - Turning Point?
It seems like everyone has now heard of alternative or digital or crypto currencies; most will have heard or read about Bitcoin. You might be like one of the thousands plagued by mysterious emails or phone calls from numbers which don't exist, extending an invitation into a "can't lose" trading opportunity!
For those of us involved, in whatever capacity, 2018 has been a difficult year. The naysayers have been very successful in spreading warnings to their readers - often talking ill-informed nonsense and betraying a conflict of interest. Often these folk represent our centralised system and are anxious about the largest transfer of wealth in history and how it will impact on them. Of course it will take a long time before the stockbrokers and bankers and asset managers begin to feel the pinch but it will happen in time.
Have you heard of the Shenzhen Court of International Arbitration? Neither had I until last weekend. This Chinese court ordered a ban on Bitcoin last year. Towards the end of 2017 all cryptocurrency trading was banned by the Chinese Government. Chinese exchanges were forcibly closed down.
According to Cn Ledger of China the Court has now reversed its 2017 decision and is quoted as follows:
"Chinese court confirms Bitcoin is protected by law. The....Court ruled a case involving cryptos. CN law does not forbid owning and transferring bitcoin, which should be protected by law because of its property nature and economic value"
Across China businesses are accepting bitcoin and other cryptocurrencies in payment for services. The Cn Ledger Twitter feed illustrates a sports car dealer quoting the price of a well known high end car in bitcoin and ethereum.
Increased and long overdue regulation is now in place forcing bitcoin users to identify themselves and so dealing with the problems of fraud, hacks and scams which plague the crypto space.
This turn of events cannot be over estimated; China embracing crypto despite the risk it places on the Yuan is hugely significant and will see further increases in demand.
World debt is, as we know, at record levels; in the US it is put at $21.7 trillion. Traditionally the Government has sanctioned the further printing of money - fiat - which could lead to rampant inflation and the next predicted financial crash. BlackRock, the world's largest asset manager with more than $6.3 trillion under management, has joined others in expressing deep concern. Experts believe this will herald a major demand for cryptocurrencies.
Author, university founder and former student of Harvard Business School and Stanford Tim Draper spoke at the recent Web Summit Conference in the US and re-iterated his prediction made last May that Bitcoin will surge in value to $250,000.
His reasoning? I'm sure he will have noted with interest the change of attitude in China as well as the worsening international debt crisis but he also pointed out to the increasing utility of crypto.
The fact that we can now spend this anywhere in the world, securely, without any restriction, means, does it not, that our need for fiat [so called real money] is decreasing.
The arguments for cryptocurrency are growing daily as are the problems facing our centralised system. If you are not already, now is the time to get involved!