The other day, I was discussing crypto-currencies with an associate at our local Starbucks, and he let me know he was working with a couple of entrepreneurs who’d previously been educational experts in it Security. Of course, for crypto-currencies it is all about safe transfer of the data, and the trust in the built-in value of those one’s and zero’s, or Q-bits. Perhaps, I might take a look at their business plan, although these digital stock markets have had some bumps in the road to the future I am sure will be the future convention — that’s that the world is headed it seems.
Does this mean we will have a distributive private key cracker currency like distributive energy on the smart grid, or distributive information like the Internet? Well, humans usually do what works and there is both bad and the good with centralization and with a distributive redundancy strategy.
Now then, what’s the latest you ask? Well, there are two articles I read not more than an hour after that meeting, as i was cruising through the information, I’d previously saved to write on this topic later; To some degree Useful — Bitcoin itself may fail as a currency, but the underlying technology is needs to suggest valuable new applications, inch by John Honda (February 16, 2014) and mind you this article was written just days before the Bitcoin theft from of their top transactions.
The other article was published by Naette Byrnes the day after those findings hit the newswires on February 25, 2014 “Bitcoin on the Hot Seat — A major bitcoin exchange powers down, raising questions about the cybercurrency. inch Are you surprised? No, me either.
The second article went on to convey; “Tokyo-based Mt. Gox, once one of the largest transactions of the bitcoin cybercurrency, stopped operating Tuesday in the middle of rumours that millions may have been thieved from the firm and rising concerns about the long-term prospects for the unregulated digital currency. Other bitcoin transactions quickly moved to distance themselves from Mt. Gox and say that they were still open for business. The value of the currency itself dropped sharply to just over $500 by mid-afternoon. It hit an all-time a lot of $1, 100 in December. inch
What do you say to that? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were right? Do they get the last laugh, or is this just an expected evolutionary process of trouble as all the kinks are exercised? Well, look at this thought experiment I had.
Let’s say there was hanky-panky involved, let’s say someone hacked the machine or took the digital currency. Right now, digital currency jigs under the radar as it is not recognized even with all the new Too big To Fail regulations on banks, etc. How can be sure you currency have value? Hard to say, how can a fancily printed part of paper marked $20 be worth anything, it’s not, but it is worth what it represents if we all agree to that and have trust in the currency. What’s the difference, it’s a matter of trust right?
Okay so, let’s say that the regulators, FBI, or another side of government intervenes and files charges — if they file criminal charges that someone defrauded someone else then how much defrauding was involved? If the government enforcement and justice department put a dollar amount number fot it, they are inadvertently saying yes that the digital currency is real, and possesses a value, thus, recognizing it. If they do not get involved, then any fraud that may or may not have occurred sets the entire concept back a ways, and the media will continue to lower the trust of all digital or crypto-currencies.
So, it’s a catch-22 for the government, regulators, and enforcement folks, and they cannot look the other way or refute this trend any longer. Is it time for regulations. Well, I know hate regulation, but isn’t this how it usually starts. Once it is regulated credibility is fond of the concept, but his digital currency concept can also weaken the whole One World Currency strategy or even the us Dollar (Petro-Dollar) paradigm, and there may be terrible to pay for that as well. Can the global economy handle that level of trouble? Keep tuned in, I guess we will see.
At the same time, what are the results next will either make or break this new change in how you view monetary value, wealth, online transactions and how real life will mind-meld into our future blurred reality. I recently don’t see many people thinking here, but everyone should, one misstep and we could all be in a new of hurt — all of the human race that is. Please consider all this and think on it.