Blockchain and Human Wealth Credits

Economics, Premium POM16 Comments

Outside of a few scattered comments, I’ve intentionally avoided the Blockchain and Bitcoin craze.  Last year I mentioned in passing that the new technology, and cryptocurrencies in general, would eventually be consolidated within the existing currency and bond structures, with it playing a role in the SDR evolution.

This past October IMF Managing Director Christine Lagarde stated that the Blockchain technology would be used to transform the SDR in the future.  This fits with the comments I had previously made.  The instability of the existing cryptocurrencies, I reasoned, would be used as an excuse to take full control and regulate the technology.

The wild speculations on Bitcoin which is taking place would also support that conclusion.  No matter how high Bitcoin goes, in no way will it be considered stable enough to replace national currencies.  Bitcoin on its own, will not be able to create a liquid market which would support the international monetary demands.

Yes, the Blockchain technology is fantastic, and will evolve even further to provide enhanced functionality to a globally consolidated system, but it will need to work in conjunction with bond markets.  Any asset used to support the system requires a level of stability which Bitcoin, or any other cryptocurrency, will be unable to provide on its own.  It needs to be anchored to something which can provide stability and reduce wild fluctuations.

The rise of Bitcoin, and the inevitable bursting of that massive tulip bubble, will cause enough widespread concern that the IMF and Bank for International Settlements, will begin to implement regulations on the use of the technology.  Something like a Basel 4.

The method by which we measure and accumulate human wealth is in the process of transitioning to something new and completely different.  The advancement of AI and robotics are on the verge of merging and emerging into something which will forever change the concepts of time and labor.  The citizens of the future will be issued credits based on a host of personal key performance indicators.  As an example, one person may have a genetic pre-disposition to a certain disease.  Through the use of an integrated Blockchain technology, that person will be prevented from purchasing certain food and drink products which can aggravate their pre-disposition.

The de-dollarization which is taking place, something we have long discussed here, is continuing incrementally, with slight increases over the last year.  China, Russia, Iran, and other nations, are beginning to minimize the use of US bonds and dollars in their interactions with one another.  This is shifting the liquidity around the world and contributing to the re-balancing of the international monetary system.  But this process takes a long time and those promoting the imminent death of the US dollar, or crypto-takeover of the world, are just spinning the same misleading and fallacious tales as they have year after year about the dollar and economic doom.

The world is changing.  That is a fact.  But the world has always been changing.  – JC

This article is copyrighted by POM Media©2017. As Premium content permission is not given to be copied and re-posted.

JC Collins can be contacted at jcollins@philosophyofmetrics.com

16 Comments on “Blockchain and Human Wealth Credits”

  1. Interesting. JC what do you make of the bitcoin mining technology that take such enormous computer powers? if you so choose, a comment about the latest numbers of low unemployment rates being toted about. Whatever became of the 80/100 million unemployed? are they being absorbed into the SS disability system, or are they creating something akin to a underground economy? with AI and robotics won’t their numbers just grow?

    Would I be correct in thinking that the BRICS system of trade and banking will eventually be absorbed or co-opted in the larger IMF, BIS, World bank system as you suggested in earlier postings?
    PTM

    1. what do you make of the bitcoin mining technology that take such enormous computer powers?

      Now there’s fuel for a decent sized conspiracy Pieter. What if bitcoin has been deployed by sinister forces as a means to take down countries already fragile electrical grids with the blame ultimately resting on the shoulders of none other than the greedy citizens themselves as they chase more and more ever increasing bitcoins? Is it just a coincidence that the price of bitcoin is skyrocketing at the same time that the Trump Admin and DoJ is cracking down on corruption, therefore presenting a very real and imminent threat to the existing power grid of the US? Mwuhahahahahahaha

      https://digiconomist.net/bitcoin-energy-consumption
      https://arstechnica.com/tech-policy/2017/12/bitcoins-insane-energy-consumption-explained/

  2. Good one JC, this has been buzzing the net lately. Here are some articles on the growing talk of regulations for Bitcoin and cryptocurrencies in general.

    https://goo.gl/rQFsNw

    “As an example, one person may have a genetic pre-disposition to a certain disease. Through the use of an integrated Blockchain technology, that person will be prevented from purchasing certain food and drink products which can aggravate their pre-disposition.”

    This sounds a bit like the food stamp program here in the US. Only the food stamps can’t purchase luxury items so its not as finely tuned as not allowing someone to purchase foods that can or will excite those predisposed conditions. These conditions will be found through all this DNA testing people are crazy about right now.

    For example:

    “If You Want Life Insurance, Think Twice Before Getting A Genetic Test”

    https://www.fastcompany.com/3055710/if-you-want-life-insurance-think-twice-before-getting-genetic-testing

    Here are some more search results.

    https://goo.gl/i8ccGj

  3. “The citizens of the future will be issued credits based on a host of personal key performance indicators. As an example, one person may have a genetic pre-disposition to a certain disease. Through the use of an integrated Blockchain technology, that person will be prevented from purchasing certain food and drink products which can aggravate their pre-disposition.”

    Not much different than “No man may buy or sell, unless he has the mark of the beast.”

    1. Exactly what I was thinking when I read the same statement.

      Big Brother watching over the sheep for the “common good” and for the safety and welfare of “the children”.

      Killiary will be impressed and proud.

  4. Thank you so much for this. Looking through your eyes everything just clicked. I wear glasses (ugh) and it’s like I don’t need them because with your view I have 20/20 vision.

    Really good.

  5. So here is a hypothetical. Currently cryptocurrencies are mined through an intense computing setup right? And quantum computers make our fastest supercomputers look infantile in regards to solving complex mathematical equations. So could quantum computers make bitcoin at astronomical speeds? I remember China launched a quantum communications computer in a satellite. In this configuration cooling problems should be resolved and power systems also if powered by solar.

  6. “SOPHIA and A.I. UNLEASHED on BITCOIN”

    After watching this, I thought Blade Runner was written by Philip K Dick as a warning.
    Bitcoin is apparently an AI construct.
    Sophia the robot making a speech in Saudi Arabia is scary and intimidating.
    The shift has happened and humanity is going towards a totally random future…as it always was!
    Who is in charge of this planet?!

    https://www.youtube.com/watch?v=guNrsaOZrgo

  7. My son bought 10 BTCs in early 2014 for ~$500 ea. Unfortunately, I passed thinking it was just a scam back then. They are now worth $150K+! How crazy is that?! Just an irrational exurberance market. I think it is akin to the .com market of 20 years ago? Once regulation starts to happen, the prices will plummet as the early adopters take get their big positions and cash out. Then, like with any market crash, there will be few or no bids and those who did not exit early get stuck. Then, once it crashes and like the .com companies, traders will enter and prices will rise again as traders and investors realize that it will have a role in the legitimate, regulated currencies market. Just my 2 cents.

  8. “Bitcoin has landed on Wall Street.

    Futures on the world’s most popular cryptocurrency surged as much as 26 percent in their debut session on Cboe Global Markets Inc.’s exchange, triggering two temporary trading halts designed to calm the market. Initial volume exceeded dealers’ expectations, while traffic on Cboe’s website was so heavy that it caused delays and temporary outages. The website’s problems had no impact on trading systems, Cboe said. Bitcoin’s spot price rose.

    “It is rare that you see something more volatile than bitcoin, but we found it: bitcoin futures,” said Zennon Kapron, managing director of Shanghai-based consulting firm Kapronasia.

    The launch of futures on a regulated exchange is a watershed for bitcoin, whose surge this year has captivated everyone from mom-and-pop speculators to Wall Street trading firms. The Cboe contracts, soon to be followed by similar offerings from CME Group Inc. and Nasdaq Inc., should make it easier for mainstream investors to bet on the cryptocurrency’s rise or fall.”

    http://fortune.com/2017/12/11/bitcoin-futures-contracts/

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