Fedcoin Will Be ‘Bigger’
Than Bitcoin
Fedcoin doesn’t even exist yet, and yet the Washington Post is
already hyping it as the primary cryptocurrency that we will be using in the
future.
Do they know something that the rest of us do not?
Just a few days ago, I warned that global central banks could
eventually try to take control of the cryptocurrency phenomenon, and so I was
deeply alarmed to see the Washington Post publish this sort of an article.
We want cryptocurrencies to stay completely independent, and we
definitely do not want the Federal Reserve and other global central banks to
start creating their own versions.
Because of course once they create their own versions they will want
to start restricting the use of any competitors.
The one thing that could derail the cryptocurrency revolution faster
than anything else would be interference by national governments or global
central banks.
Unfortunately, now that Bitcoin, Litecoin, Ethereum and other
cryptocurrencies are getting so much attention, it is inevitable that the
powers that be will make a move.
Over the past few weeks, investors have been flocking to bitcoin,
the digital currency whose value has soared by about 2,000 percent in the past
year alone. And while many economists are cautioning against excitement about
bitcoin — which is caught up in what may be one of the biggest speculative
bubbles in history — it’s important to note just how revolutionary the
technology may be.
Indeed, the technology underlying bitcoin could fundamentally change
the way we think of money.
Professor Harvey goes on to explain that it is “only a matter of
time before paper money is phased out”, and that some version of “fedcoin” is
inevitable.
The Federal Reserve and other global central banks could just leave
us alone and allow us to create our own currencies.
The cryptocurrency revolution is moving along just fine, and there
is no need for any sort of interference.
But I have a feeling that the powers that be will eventually
manufacture some sort of a “cryptocurrency crisis” if one does not happen
naturally.
In the aftermath, they will attempt to introduce some version of
“fedcoin”, and many in the general public will be very thankful for the
“solution” that the government has provided.
And that day may be closer than we think. In fact, the U.S. government has already
invested millions into cryptocurrency research. To add fuel to the fire, the
U.S. government has been rigorously studying Bitcoin for about two years now and
instead of fighting Bitcoin, the Feds seem poised to wipe out the U.S. dollar
by creating their own digital currency. The National Science Foundation, a U.S.
government agency that supports and funds research has awarded $3 million to
three U.S. universities for wide-ranging cryptocurrency research.
Cornell, the University of Maryland and the University of California
Berkeley will focus on developing new cryptocurrency systems that, according to
principal investigator Elaine Shi, will address “pain points” attributed to
Bitcoin and other existing networks.
The Federal Reserve is far from alone. Other global central banks are doing their
own research, and the Bank for International Settlements says that “all central
banks” may eventually need their own cryptocurrencies. Central banks may one
day need to issue their own cryptocurrencies, the Bank for International
Settlements said in its latest quarterly review. “Whether or not a central bank
should provide a digital alternative to cash is most pressing in countries,
such as Sweden, where cash usage is rapidly declining,” the Sunday report said.
“But all central banks may eventually have to decide whether issuing retail or
wholesale [central bank cryptocurrencies] makes sense in their own context.”
This is going to be a critical phase for the cryptocurrency
revolution because the people of the world are going to have to make it
exceedingly clear that they do not want central bank cryptocurrencies. Central
bank cryptocurrencies would simply be an extension of the current debt-based
system that is systematically enslaving humanity.
The thing that makes cryptocurrencies so great is the fact that they
are not debt-based and they are allowing humanity to express independence from
the current system.
As existing fiat currencies fail, we want there to be independent
cryptocurrencies that people can use as an alternative. And we don’t have to
just imagine what that would look like.
In fact, it is already happening in Venezuela. But in Venezuela, the
collapse of the bolivar has forced locals to turn to alternatives like bitcoin
and local community-issued currencies with fixed exchange rates. The rapid
erosion of the bolivar’s value made everyday transactions like buying groceries
and paying cabbies untenable – customers had to pay with large, cumbersome
stacks of bolivars that were difficult to transport. Patricia Laya, a
Venezuela-based reporter, tweeted a photo of the 5,000 bolivars – the maximum
amount – she was able to withdraw from an ATM in Caracas. They’re worth around
$0.05. Laya stated that she had waited 20 minutes in line to obtain $0.05 in
hyperinflated currency worth little to no value,according to CCN.
Even though bitcoin transactions can take hours – even days – to
settle, local merchants have readily embraced the digital currency. This is a
revolution that has the potential to completely change the global financial
system, but I have a feeling that global central banks will never let it get
that far.
The current system funnels literally trillions of dollars to the
very top of the food chain, and the elite are going to jealously guard their
golden goose.
Michael Snyder
Michael T. Snyder is a graduate of the
University of Florida law school and he worked as an attorney in the heart of
Washington D.C. for a number of years. Today, Michael is best known for his
work as the publisher of The Economic
Collapse Blog. Michael and his wife, Meranda, believe that a great
awakening is coming and are working hard to help bring renewal to America.
Michael is also the author of the book The Beginning Of
The End
