BitCoin was a means to get money out of China when you could not wire money out under currency controls. In Australia, they have adopted the slogan that “CASH IS FOR CRIMINALS.” They will do the same to cryptocurrencies. All they need to do is declare a law that it is illegal for a business to accept cryptocurrency under the excuse that it is money laundering. You just killed the entire industry.
We’ll be ready for that with optional, opt-in KYC on the blockchain.
Also any country that bans blockchains is going to be falling away from the massive innovation and knowledge age, and will set their economy backwards. There will always be some countries that embrace the technology and will prosper while the retarded countries will suffer (or more likely their citizens will ignore the government and use VPNs and what not to side-step the government).
I have been skeptical about the claims that cryptocurrencies will replace all money and central banks and end banking creating money out of thin air. That would be recreating the Dark Age. For that to take place there can be no lending. The mortgage market would collapse and the value of the property would fall to less than 10% of its worth becomes the maximum someone has cash as was the case during the Great Depression. This hatred of central banks is stupid. The money they create is less than 10% of the money supply. The bulk is created through lending and fractional banking.
Unfortunately Martin Armstrong being the old geezer that he is, is unable to understand the decentralized ledgers are part of a epochal shift away from the (fixed capital investment, the industrial age, and thus the) value of finance and debt. As land becomes worse than worthless, debt is also becoming useless in the knowledge age because knowledge creation routes around the Theory of the Firm and is not fungible and thus can’t be financed. As Rifkin’s Zero Marginal Cost Society explains, the value of the (mass) production financed things will become insignificant relative to the value of the production of knowledge.