☄️ Time-stamps!
0:29 Why Bitcoin is Valuable
0:97 Collaterized Debt Obligation Scam
2:34 looming
2:46 Market Update
3:00 Mining Ban?
6:50 Google Search Price Correlation
7:16 Ethereum Hard Fork Close
- CEO of BTCC!! "Bitcoin price is resilient b/c its value doesn't come from Gov't Acceptance; its value comes from failure of fiat money system." But what failure you might ask? Isn’t it working perfectly? Not quite. Let me explain what’s known as the collateralized debt obligation scam, that brought the housing market to a screeching halt, destroyed millions of American lives, crashed the world economy and slammed us face first into a Recession. A collateralized debt obligation is a security where a bank will sell its customer mortgage debt on the stock exchange and the buyer would get it at a cheaper rate. The most popular are the AAA rated securities, where the customer is almost guaranteed to pay back the mortgage, and the house is worth a lot if not. Here’s where the scam comes in. They started selling the mortgages of people who should never have been given one in the first place, for a house which was not worth what was stated, as a AAA security. Literal fraud, and no one went to jail for it. In fact, we gave them more money to make sure they didn’t go bankrupt for perpetrating this mass rip-off on the world. The tax payers, aka you and me, gave them $12 billion additional dollars for cheating us, crashing the economy and ratcheting up debt worldwide to utterly unsustainable levels.
- Zero Hedge reports that global debt now stands at a record high of $217 trillion dollars, more than 327% of GDP.
- The people who caused this looming humanitarian disaster are the same people who are telling you that Bitcoin is a “fraud”. The sheer audacity of it is utterly incredible. And while they say one thing, they’re investing in the technology also.
- https://www.cryptocoinsnews.com/china-bitcoin-exchange-ban-extend-otc-trading-maybe-mining-wsj/ Nothing is official yet, but everyone’s preparing for the worst. Speculation that all exchanges both national and foreign will be banned. We’ve already seen the damage from this potential move. However, let’s for example take a look into what would happen though, if the Chinese government was to ban mining. As I think this is an interesting scenario to think through.
- Immediately we have some bitcoiners who would be pretty happy about it. Aside from the fact that if a global superpower is working on stopping Bitcoin, then you know Bitcoin is working and is the real deal. People will claim the whole reason why Bitcoin was created; was for a decentralized censorship resistant alternative medium of exchange to free us from their tyranny of the current corrupt world banking system, backed by equally corrupt governments around the world. While this could now be true now, it was not the original intention. The Bitcoin whitepaper talks of a micropayment processor to avoid 3rd party fees. But how could he have had such a vision with the first of its kind. Moving on.
- China accounts for around 64% of the total hashrate and having them out of the picture would massively reduce concerns of centralization, where one party has more control than others. Bitcoins beautiful code would readjust eventually for the loss in hash power, although it would hurt for a while temporarily as Bitcoin does not have emergency difficulty adjustment like Bitcoin Cash.
- Alternatively, we have unlikely use of a VPN to mask their activity. Or packing up and moving across the border for their operations, or complete closure and mass sale of used mining equipment.
- The value of Bitcoin could go up, as China gets relatively cheap electricity when they are removed from the picture, the miners would want to be selling their Bitcoin at an average higher cost potentially. But then again, the difficulty would readjust so this could be a moot point. Bitmain can continue to produce and sell their mining machines, but they would likely be overtaken by superior Japanese products which are planned, especially if they are able to fund their research and development through mining.
- On the flip side, how can around 20% of the population of earth have their government decide for them they cannot have Bitcoin and must use their fiat be considered a good thing? You be the judge.
- This will inevitably have some of you scratching your head and wondering, what if more governments decided to do this? While Russia appears to be headed in the opposite direction, and Australia has recently ended double taxation for Bitcoin users https://www.cryptocoinsnews.com/australia-finally-introduces-bill-kill-double-taxation-bitcoin/ - and there are more countries that stand to benefit than don’t - I don’t know if more would or not, but let’s remember that the Chinese government is very oppressive compared to a lot of western society. This is the government that attempted to ban Fb, Twitter, Snapchat, VPNs, Gambling, certain books, music and film. A great internet firewall surrounds the country, and even tor browser usage is difficult: https://www.technologyreview.com/s/427413/how-china-blocks-the-tor-anonymity-network/ None of this activity is realistically unexpected. For many a lot that China bans, means it’s a great thing to invest in from previous history. What a great advertisement.
- Already, the markets are shaking off the attacks. Bitcoin and other cryptocurrencies are bouncing back up fast. They move at video game speed. If a traditional market takes three years to recover, Bitcoin takes three months or a few weeks. That’s because bitcoin and cryptos are bigger than any one country or company. If someone doesn’t want to play nice, they won’t get to play in the sandbox at all.
- The price of bitcoin has a 91% correlation with google searches for Bitcoin: http://www.businessinsider.com/bitcoin-price-correlation-google-search-2017-9?IR=T Or is it the other way around? And in unrelated reports, umbrella usage has a 99% correlation with rain, therefore by metrics it is the cause of rain.
- Ethereum is getting closer to the Byzantium hardfork, or Metropolis part 1. It has been activated on the test net as you can see here: http://status.ropsten.ethereum.org/ Very basically, this is looking to stabilize the amount of ether issued through mining, make mining more feasible and allow for faster transaction confirmations. If everything goes well it will get implemented on the live network soon. The other fork is a few weeks/months away, or part 2 dubbed Constantinople. But another hardfork? Does this mean we could see another Ethereum, Ethereum original classic? No, very unlikely. This hardfork is planned, it has consensus and is not contentious.