The other day I was discussing cryptocurrencies with an acquaintance of ours at our local Starbucks and he told me he was working with several entrepreneurs who had previously been academic IT security experts. Of course, for cryptocurrencies, everything is important for secure data transfer and trust in the intrinsic value of those and zero or Q-bits. Maybe I could look at their business plan, even though these digital currencies had some bumps on the way to the future, I’m sure that will be the future norm – that’s how the world seems.
Does this mean that we will have a distribution currency like distribution energy or distribution information like the Internet on a smart grid? Well, people usually do what works, and there are good and bad things with centralization and with a distribution surplus strategy.
So, what did you ask most recently? Well, there are two articles that I read no more than an hour after that meeting, while cruising the information, which I had previously saved to write about later on this topic; Useless – Bitcoin itself may fail as a currency, but the underlying technology is starting to suggest valuable new applications, ”Paul Ford (February 18, 2014) and note that this article was written a few days before the theft of Bitcoin from one of their top stock market.
The second article was written by Naette Byrnes the day after the findings hit the news on February 25, 2014, “Bitcoin in the hot seat – The main bitcoin exchange is shutting down, asking questions about cyber currency.” Are you surprised? No, neither do I.
The second article further states; “Tokyo-based Mt. Gox, once one of the largest cyber currency exchanges bitcoin, ceased operations on Tuesday amid rumors that the company may have stolen millions and growing concerns about the long-term prospects for an unregulated digital currency. Other bitcoin exchanges have been rapidly moved to distance themselves from Mount Gox and claimed they were still open for business. The value of the currency itself fell sharply to just over $ 500 by mid-afternoon. It peaked at $ 1,100 in November. “
What do you say to that? Alas. Does this prove that those who call it the Ponzi scheme were right? Do they laugh last, or is this just an expected evolutionary process of disorder because all the kinks are worked out? Well, think about this thought experiment I had.
Let’s say it was someone handicapped, let’s say someone hacked the system or stole digital currency. Currently, the digital currency is flying under the radar, because it is not recognized in all the new regulations on banks with excessive invoices, etc. How can digital currency have value? It’s hard to say, how fantastically printed paper at $ 20 can be worth anything, it’s not, but it’s worth what it represents if we all agree to it and believe in currency. What’s the difference, it’s a matter of trust, isn’t it?
Okay, let’s say regulators, the FBI, or another branch of government interfere and file charges – if they file criminal charges that someone cheated on someone else, how much fraud is that? If the State Department of Enforcement and Justice has attributed a dollar amount to it, they inadvertently agree that the digital currency is real and therefore has value, recognizing it. If they don’t get involved, then any scam that may or may not have happened brings back the whole concept, and the media will continue to undermine the trust of all digital or cryptocurrencies.
So it’s a catch for government, regulators and executors and they can no longer look the other way or deny this trend. Is it time for regulations. Well, I personally hate regulations, but isn’t that how it usually starts. Once regulated, the concept is given credibility, but its concept of a digital currency can also undermine the entire strategy of the Single World Currency or even the US dollar (petro-dollar) paradigm, and could be paid for. Can the global economy withstand that level of disruption? Follow us, I guess we’ll see.
Meanwhile, what happens next will make or break this new change in the way we look at monetary value, wealth, online transactions, and how the real world will multiply into our future blurred reality. I just don’t see a lot of people thinking here, but we should all, one wrong step and we could all be in a world of hurt – all of humanity. Please consider all of this and think about it.