I am just reacting to the avalanche of recent doomsday prophecies for Bitcoin and the ongoing saga in its relationship with the central banking system. To be quite honest I simply cannot follow anymore and I am drawing my own conclusions based on what I have been reading, studying and following through books, blogs and social media platforms.
As far as I can understand Central Banks are getting scared because of the ever growing Bitcoin mania. I guess we can understand their concern, they need to discourage anything that lends itself towards decentralisation at all cost because it would apparently put them out of business. Their very existence seems to be on the line.
But this recent initial move by HSPC bank to ‘block‘ Bitcoin (block Bitcoin…Bitcoin runs on Block Chain and they want to block Bitcoin … oh never mind) does not seem to be a very well thought out plan and lends itself more to an act of desperation. I am not sure if gaining the reputation of being the first bank to directly attack Bitcoin is a good public relations tactic.
If you really want to fight Bitcoin then get your own house in order first. The ever growing disillusionment and diminishing trust in the central banking system and how governments are trying to maintain economies through mass money printing seems to be reaching a climax.
The average layman is not that stupid to realise that this fiasco cannot continue without an eventual dramatic outcome.
So even if they succeed in destroying Bitcoin that will not eradicate the main problem and issue at hand and people will merely turn to other asset classes to try and save their hard earned wealth.
I also don’t believe that Bitcoin is that great a threat as they imagine it to be. One being its supposed limited supply and the other being that it will never succeed in converting the whole planet anyway. There will always be a large percentage of non-believers that ain’t gonna buy into this….
‘crypto – bit – block – computer – chain – coin’
nonsense and will stick to their traditional banking methods, secret under their mattress locations, and the long standing alternate precious metals havens. Apparently the new emerging Asians economies have an unbreakable relationship with Gold as their main alternative safe asset haven and its apparently not going to change due to the cryptocurrency evolution.
I also do not understand why they cannot simply work side by side giving investors more possibilities to save and diversify their accumulated wealth amongst them both.
But no worries in the highly unlikely event that Bitcoin would collapse but Gold, Silver & REITs are somewhat out of your reach, …… there’s always
because just like Bitcoin the price is determined by demand and we have already witnessed what people are willing to do to be able to wipe their back side.
There is only one slight problem I foresee in the very near future though.
What will these entrepreneurial hoarders be willing to accept in exchange for their precious rolls of toilet paper ???