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RE: The Death of SWIFT and the (Engineered) Death of the Dollar
Good analysis. However I believe the end result will be that Bitcoin or another cryptocurrency with faster transaction times (Steem?) will become the standard.
At the end of the day, why would anyone want to move from a US (and part EU) controlled system (SWIFT) to the same sort of system run by China or Russia (who are sure to use it as a weapon even more than the US does).
The obvious solution will be to move to a system controlled by no one, with a long and strong track record of working and not being hacked which is much faster and cheaper than SWIFT or alternative systems.
Some banks are already moving this way and the continued weaponisation of SWIFT and breaks into competing systems and will drive this.
I concur. I don't see why steemit couldn't fill that role although bitcoin and Steem can both be right there.
Banks are very conservative and will want to use the most proven, secure and high liquidity & market cap blockchain for large interbank transfers.
While I love Steem, Proof of Stake networks are not as secure from Nation State attack as Bitcoin's POW. I've written about this in one of my early Steemit posts here.
This is particularly important in the context of the weaponisation of existing systems like SWIFT.
Also, it would require a huge increase in Steem's market cap and liquidity for it be suitable for large inter-bank transactions.
However I can see Steem being used for smaller consumer transactions where speed and no fees are important. Steem has the biggest and best community of active users of a crypto platform for content. It is natural to use the same platform to send funds as the community grows.
I wonder if Bitcoin as it currently is would be capable of that. Seven transactions per second simply does not pass muster. There are way too many banks out there relying on being able to transmit constantly day in day out. Most funds in the Bitcoin network are rarely transmitted. A second-tier solution would be required but Bitcoin has nothing in the pipeline that would fit the bill any time soon. Could Ripple replace SWIFT?
Yes, you're right that Bitcoin isn't currently capable of doing all the transactions that SWIFT does.
But a combination of Bitcoin for high value transactions and another faster (but less proven) blockchain (Steem) for smaller transactions would do the job nicely.
I'm not a fan of Ripple because it is not decentralised and would be subject to the same weaponising takeover discussed in the main article.
In my opinion, one potential plausible future scenario is one where Bitcoin is used as a decentralized global store of value and a large number of other tokens on different blockchains are used as money of different velocities, each further away from Bitcoin in terms of the compromise between security and speed/scalability. Cross-chain atomic swaps are used to move funds from chain to chain according to need. No one or even two chains will suffice for global mainstream use. There will most likely be thousands of well-known and trusted public and permissionless chains and a number of private ones. Consumers need not bother knowing exactly which route their funds take as those decisions will be taken by apps and layers of decentralized middleware.
Exactly! There is no one ring to rule them all. It will be a long tail of coins and chains.
@dhenz yes, the advantages of having Steem do that would be endless but imo, the system of control will never allow something that is totally out of their control to be a means of transaction. They will try to push their token on us after possibly first crashing bitcoin ( causing all other alts to crash with it) to use as a scapegoat to their plagued and broken, house of cards that is the current monetary system and then introduce their NWO coin and pump it to the sky. Make it a standard. Accepted everywhere. Taxed. Controlled. Monitored. That's the only fuking thing I fear in the crypto space.
The house of cards is at the verge of tiping over as they can't keep it up for much longer. The debt is impossibly big, interest rates low (somewhere negative which is ridicilous), theft (taxes) the parasites are collecting is on a constant a rise. It has to and will go down. I just fear it won't use the crypto crash scapegoat. I can't afford gold and the Steem I earn is all I have....
I believe governments are going to have to take a back seat whether they like it or not. As a human we have been controlled via the money supply, and violence. Now, no one can take my Steem or bitcoin away, legally they can't because if I say no worse case they lock me in a cage but my money is still safe. This has never happened before, and outside of kicking in every door and going straight up a dictator and torturing people for the crypto, what other choices do they really have? Places like Kenya, the gov has barely any say or control anymore, their fiat has been reduced to toilet paper and the citizens do commerce with phone minutes. I for one am not scared and ready to buck for my freedom and I feel a lot of others fee like me. We outnumber the small majority thousands to one, the curtains are falling for the great OZ and people are starting to wake up.
Governments are just the puppets of the control system. Don't you think that those that are really in control and dictate what the mainstream does now, will not have anything to do with controling which coin will be the one we end up being pushed to use?
They can't and that's why I love cryptos. I hate the government from the bottom of my heart, taxes, and laws also (the unnatural ones to push more taxation and regulations) but even if they can't take it away directly, they can crash the price of all cryptos if they want as I mentioned. That's in a way the same as taking your coins away.
Yes! That's what I love to see. People in that kind of countries come flocking to crypto as their national currencies inflate their value out of existence. Like Venezuela where they have more than 500 businesses runnign on Digibyte. But then again as soon as that happens those that are suppsoed tobe working inthe favour of the people step right in with a fresh dose of taxes and regulations. That just pisses me off.
FOr example, here where I live in a highly masonic controlled country, Croatia you can't start a business and accept crypto without having to abide the laws and accept the theft from your own government; if not you are abducted and sent to jail. All that while their friends at the top do just the opposite and get past all the laws, regulations and taxes like they don't exist. That just pisses me off man, and it's like that everywhere. Or at least I feel like it is.
I'm trying to exit their grips of control with my earnings here on Steemit because living in such a controlled and corrupted country you need damn good connections to secure a shitty 500-600€/mo job that barely pays for the appartment costs + utilities, but where is the food? No food buddy. Unless you have some friends at the top of a big company ready to hire you for 800-1k€ / mo which I don't and probably never will. It's fucked up man!
The system is broken and it has taken us such a long time to start waking up to it, and as you said the iron curtain is slowly falling but god knows how long will it take for the majority that we need to make a change to wake up.