Reasons to be cheerful - Part 2
Do you remember what was taking place in August 2008? The 29th Olympic Games opened in Beijing and the domain Bitcoin.org was registered. In January 2009 Slovakia officially became the 16th member of the Eurozone and adopted the euro; also that month the Bitcoin Network came into existence. In March 2010 Hurt Locker won best film at the Oscars and Bitcoin was worth $0.03. In February 2011 the Arab Spring saw Hosni Mubarak resign as Egypt’s President and Bitcoin was worth $1.00.
Long time ago? Not really. A fair few things have happened since – including the extraordinary rise of Bitcoin value at Christmas 2017, and its spectacular fall shortly after. Facebook is to launch their own [centralised] cryptocurrency next year. What were the odds?
People often moan about the things that we have little or no control over; I do! Inflation – now just under 3%, fuel prices, increased borrowing rates, 20% fewer $ and 30% fewer euros since November 2015. Borrowing costs up – set to rise further but little or nothing in return by way of deposit rates. Rail fares rising seemingly out of control. Rapidly growing consumer debt and national debt – despite contrary comments from Government. Expressing debt as a % of GDP is fine so long as GDP rises but as BREXIT continues to frustrate and annoy and October is coming into view, what of the future?
Credit cards have evolved only slightly since 1946 and cost insurers millions in fraud reparations – the cost of which is passed on of course. Governments print money at will and earn seigniorage [commission]; equity values now exceed $100 trillion [talk about a bubble] and the FCA regulates an industry which seemingly always manages to make a profit for…the financial services industry. And HMRC can raid our bank accounts if they believe we have underpaid and we then must prove they are wrong.
I refer to the above as the “System” - not too dissimilar to the subject of the movie The Matrix.
But what if we could change things? Where we controlled our lives, our money, our identity. What if there was an alternate system which ensured absolute security in transferring anything of value – including money? A system which protected our money, its value not dependent on Government economic policy and Central Bank strategy. Where the events in Venezuela if actioned here would not affect us?
Satoshi Nakamoto is widely credited as the inventor of Bitcoin but he also created the first Blockchain in 2008 - which is a continuously growing list of records, called blocks, which are linked and secured using cryptography. The first work on a cryptographically secured chain of blocks was described in 1991 by Stuart Haber and W. Scott Stornetta – so the concept is far from being new; it will, however become the norm. Blockchain technology will remove the "middle man".
By 2020 Dubai plans to conduct all government business by Blockchain. 80% of the world’s banks are developing their own blockchains.
Google changed information and Facebook changed friendship; Apple changed communication BUT a far more significant change is coming…
Technology is changing money. We are moving away from commodity based [physical] value, and moving towards network based [digital] value. Fiat [no intrinsic value] money has major problems - more on this later. Worldwide debt has reached distressing levels.
Credit Cards first appeared in 1946 – technology has barely changed. Credit availability worldwide has been severely abused, and centrally banked currencies are engaged in competitive devaluation.
It’s even been reported the price of gold may be being manipulated to conceal inflation.
Worldwide, people are using less cash to pay. Credit and debit cards remain popular BUT are increasingly being used via smartphones. Smartphones and digital transactions now go hand in hand. Digital currency and fiat currency already co-exist but digital currency will only continue to grow.
Blockchain is the future of transactions:
• Blockchain is a mutual distributed ledger the keeps digital assets completely secure - creating new possibilities for money
• It removes the risk of theft, hacking and duplication
• It allows people everywhere to transact safely and securely
• The system is a reliable way to validate digital transactions transparently and globally.
“…one of the biggest IT inventions of our time” TheGuardian.com
Bitcoin began it all and like all first inventions, what followed is more advanced. Think about the phone you had before your first smart phone. Early adopters have made millions – despite its well publicised fall in value Spring 2018 it is still worth an amazing $8,400. From a $0.03 start. Where would you be now if you'd bought $100 worth at the start?
A growing number of firms are offering services to the early adopters encompassing guidance on when to buy and sell and which currencies to trade – Bitcoin being the primary asset. Artificial Intelligence is revolutionising our world and has a particular role to play in this new money, delivering financial freedom to thousands around the world.
This new money, digital/crypto, can now be spent anywhere in the world. Securely.
Free of the ravages of a system which works for the 1% owning 90% of the worlds wealth.
It is now possible for everyone, under the thumb of this uncaring system, to throw off this yoke and achieve real freedom. Imagine being able to build a lifestyle of your choice rather than the one you're stuck with?
The financial revolution is gathering pace. Ask Facebook! If you have not yet started your journey then now is the time.