Sunday, 26 November 2017
Crypto Currency - Great Opportunity or Ultimate Blindside?
Bitcoin and the cryptocurrencies have taken the world by storm, and has been touted by the alt-media community as the real ticket to decentralizing, undercutting Central Bankers and freeing humanity from the grip of the Cabal.
Enthusiasm is further fueled by the distrust in IRL paper fiat money and its constant devaluation by inflation.
However those of us who remember our Math classes especially in Advanced Math where we do these Binomial type progressions involving number values between 0 and 1, i.e. in the 0.xxx or 10^(-x) range, the progression would go into infinity.
We know just as whole numbers can go to infinity, the decimal side can go to infinity, milli, micro, nano, pico, femto, etc.
Here's the thing with Bitcoin. While most paper currencies stop at 2 decimal places (1-99 cents) the Bitcoin system does not have a limit of divisibility. Its obvious if you have used Bitcoin and transferred to wallets or exchanges. The number of decimal places are large to accomodate the micro-level transaction fees, eg 0.0001954 BTC.
Lynette Zang in this SGT Report interview mentions briefly this issue at 24:45 and mentions this shows how little we really understand this new form of money.
Right here would be where Quantitative Easing could be used to exploit this loophole, and to hell with the 21 million market cap, which looks great because it stops the exploitation of the infinity of whole numbers as with hyperinflation of fiat currencies, but conveniently there is no cap for the number of decimal places.
Other issues like international banking laws that apply across borders designed to prevent capital flight by cryptocurrency wallet users are also talked about here.
For the record I trade in cryptos and have made some money off the rise in Bitcoin. Those who have gone all into Crypto to the point of compromising on the fundamentals of real money of physical assets of value need to take the above into consideration.