My feedback to Armstrong on his latest blog response to the cryptobugs:

Mr. Armstrong; There are these people so desperate to argue that cryptocurrency will change the world, I have heard the same pitch behind gold and I suspect most are just goldbugs who gave up and moved to cryptocurrencies. The same arguments of fiat and central banks are at the base of this as well. Do you think that cryptocurrency can somehow emerge as a solution after the Crash and Burn? How can there be thousands of these cryptos? If the dream they pitch is even plausible, then does there not have to be just one cryptocurrency?

There’s only one international reserve cryptocurrency coming and that is Bitcoin. The altcoins are fractional reserve claims on Bitcoin. Bitcoin is the only form of asset or money which meets famous mathematician and game theorist (and recently deceased in a fiery car crash) John Nash’s model of Ideal Money. Nash’s whitepaper on Ideal Money explained why other assets can’t qualify as Ideal Money. The tail doesn’t wag the dog and so non-ideal money assets can’t be cardinal to the one Ideal Money. Please click the following links to read more details of the rationale (if you don’t click then you’ll remain ignorant):

https://bitcointalk.org/index.php?topic=4416188.20#msg39624265

https://bitcointalk.org/index.php?topic=4435201.0#msg39666724

https://bitcointalk.org/index.php?topic=4433000.0#msg39618816

https://bitcointalk.org/index.php?topic=4433000.0#msg39663759

(all the links have been archived at archive.org and archive.is)

We have to ask what is at the core of this trend. In essence, it is the very same trend that put Trump in office. The entire 2007-2009 global financial crisis and bank bailout created an entirely new “skepticism” of government in most countries. This is where the digital assets have come into play.

Agreed. Correct. I know so many of the cryptobugs originated from gold and silverbugs, including myself I got into silver in 2005 because I became aware that Western socialism was peaking and becoming perverse. The destruction of the three (not twin!) towers on 9/11 was the trigger for my awakening because the physics of their collapse is impossible to explain with the official story. I have since reviewed the evidence that Mossad was involved which is very convincing when studied down to the minute details. You can also observe now the Pope preaching for blasphemy such as gay marriage and socialism. The Pope even advocates and accepts Muslims killing Catholics by promoting acceptance of their murderous acts in the context of human rights. The Church and the concomitant manorialism was the backbone of Western civilization even through the Middle Ages until the 19th century. This is the sign of the total collapse of Western civilization ahead. See my blogs on why Western civilization advanced into industrialization but Asia did not:

https://steemit.com/philosophy/@anonymint/geographical-cultural-ethos-science-is-dead

https://steemit.com/philosophy/@anonymint/geographical-cultural-ethos-science-is-dead-part-2

Are they capable of altering or influencing traditional global monetary policy? The answer: absolutely no possible way. To accomplish that we MUST end socialism. I doubt these people really understand the full scope of structural changes that would need to be made to move to any cryptocurrency. Adam Smith’s Invisible Hand rules the question.

The rise of cryptocurrency and distributed ledgers is synergistic with the collapse of socialism. They are both because of it and helping it to collapse.

Until it is in the self-interest of those in power to hand back the scepter of power itself, there is just no way to accomplish such a monumental change without the house burning down FIRST. The other possibility is that governments just usurp the crypto world like they confiscated gold and then control it for taxes. They do want to eliminate all paper currency to collect 100% taxes they believe are avoided. They also pitch it would end crime as we know it. The black market would then no doubt emerge as barter once again. To think that cryptocurrency can defeat central banks and governments is really far-fetched.

You are still hard-headed, even I have already tried to explain this to you several times.

Bitcoin was created by the Zionists (i.e. the powers-that-be) to destroy the US dollar and the nation-state central banks. The nation-states are entirely powerless to stop it because of jurisdictional arbitrage. The SEC can’t even get organized on stopping ICOs and even a representative from China stood up at the recent NY hearing and said the Western regulators are highly confused. In order for the governments to get organized to stop a global phenomenon, they must act as a unified front, but in order to be unified, they must surrender their individual nation-states sovereignty (because normally they squabble and have differences and thus exist as separate nations with separate wealthy who control each nation-state).

This is the masterplan of the Zionists. They are creating a new international reserve currency Bitcoin which the nation-states are powerless to stop.

You are always focused on the nation-states’ powers of taxation, confiscation, and what not. But the wealthy can move to other jurisdictions. They will shop around and find a friendly jurisdiction and flip the middle finger at the other nations. Kim Dot Com and Julian Assange both flipped the middle finger at the USA and the USA has been powerless to extradite them after so many years.

Now imagine when the USA is trying to fight millions of dissidents all over the world who are flipping the middle finger at the SEC right now and daring them to do something. Sorry Martin, you’re far from reality on this one. You need to reformulate your perspective.

The political changes are monumental. Politicians can no longer run for office promising benefits by robbing the rich and handing it to the poor. In order for crypto assets to replace money, it would require a profound change in politics. It is not simply central bank money. The entire pitch of cryptocurrency is that it will take the creation of money away from central banks and thus government. Think that through. Career politicians would be completely at a loss. They have no qualifications with respect to management of an economy. The Democrats have been selling the same promise since FDR’s first election. Just look at the chart above and you will see that the Democrats have been in a bear market ever since FDR. They pretend that someone cannot get rich without oppressing the poor. Wealth to them is very Marxist and a zero-sum game. They are stuck in the idea that someone makes a product and the capitalist profits on their labor. They fail to comprehend that someone can invent something like Google, Amazon, Microsoft, or our Socrates Platform that by no means oppressed some poor individual to create it. They are frozen in time and cannot comprehend the Invisible Hand of Adam Smith. This is why I say that socialism is dead and indeed the entire cryptocurrency movement is part of that collapse in the public’s confidence in government.

Correct. Cryptocurrency is going to rip to shreds the existing Western socialism. It will also probably topple the corruption in the Chinese government also, which is perhaps one reason why China is banning it. But the wealthy of China will use VPNs and defy the government. For China to emerge as a new world power it can’t reject Bitcoin, for it will be walled off from the future international reserve currency.

Additionally, cryptocurrencies are promising to end fiat currencies, and in reality, it is a return to a sort of commodity-based money not so dissimilar from a gold standard. The problem with all of this is the idea that if we somehow returned to a gold standard, then money would be worth “something” as if it would never change in value. That just cannot exist and NEVER has. Whatever you define as money, it will rise and fall against assets. That is fundamental to the economy. It is why communism failed.

You obviously have not read John Nash’s paper on Ideal Money. The point is that the national currencies will float against the ideal money reserve. So the nations will be able to inflate their fiats as always. It is just that no nation and no IMF will control the Bitcoin reserve currency. Instead it will be surreptitiously controlled by the Zionists who control the 12nm ASIC chip fabs for the mining equipment.

Altcoins will also float relative to Bitcoin. Altcoins will have features and use cases that national currencies will not, for example for globalized ledgers and transactions such as decentralized Facebook on a decentralized ledger.

Here is a chart of Bitcoin. It has risen and crashed. It did not hold on to value permanently at some fixed level. This is why I say it is an “asset class” fluctuating against the currency – the dollar.

Your chart is fooling your eyes, because you have not displayed the logarithmic chart. Look at my analysis and you will clearly see that Bitcoin is in an adoption pattern and will exceed $300,000 within the next decade which will place the market capitalization above $5 trillion:

https://steemit.com/trading/@anonymint/bitcoin-to-usd15k-in-march-usd8-5k-by-june-then-usd30-k-by-q1-2019

Here is a chart of the rise and fall of the inflation index when gold was money. These very swings in the economy are what Kondratieff studied and created his long wave. Gold did NOT prevent the boom and bust cycle. That is part of nature that CANNOT be eliminated. When gold was money and the stock market rose in value, that meant money declined in purchasing power which was gold. It acted economically NO DIFFERENT it money were paper, seashells, or cattle.

Again John Nash’s paper on Ideal Money explains why those assets were not ideal money. And explains what the properties of ideal money must have. And Bitcoin fulfills those properties of ideal money (if we assume the mining is not surreptitiously controlled).

So, will cryptocurrencies replace paper currency? The actual amount of transactions today in physical money is less than 5%. So we are already using electronic money every day, such as when you buy something online. So will that emerge eventually as a cryptocurrency? Perhaps. There is nothing to prevent that once we get the crash and burn, and the “burn” is the replacement of the political system.

You’re making a mistake by equating Bitcoin’s adoption to transaction use. Bitcoin is being adopted a global unit-of-account and reserve currency of the wealthy. In the future, you will see national central banks holding it. Mark my word!

What I disagree with is the notion that somehow cryptocurrency will force political change and government will simply yield and hand back the scepter of power when politely asked. That has NEVER taken place, not even one time throughout history. Governments do NOT voluntarily surrender power. They will use whatever power they have to the bitter end. So, sorry. History is on my side on this one. Dream all you want. Human nature never changes throughout the centuries. Those in power will act in their own self-interest and defend against the loss of that power.

Sorry you’re wrong. There has never been Ideal Money before. This is an epochal paradigm shift. I keep trying to tell you that your models of history are useless in this case. This is long-tail distribution event that has a cycle longer than antiquity. That is how important this is. And that is why you are blinded. You are trusting too much your study of history and you are failing to see that this is an event with too long of a cycle for you to detect that way.