Why Bitcoin Can't Replace Gold - Economic Freedom

Bitcoin Will Not Save Your Economic Freedom.

Blockchain will be used to take it, Bitcoin will be co-opted by Banks

We have said this several times in the past. Bitcoin is not your savior from Banking Oligarchs. It is electronic. It is not physical and therefore can be co-opted by the banks themselves. Banks are not going to give up their franchises. If they cannot beat Bitcoin, they will create their own. The CME has embraced Blockchain technology. Banks are starting their own crypto currencies. Believe us when we say, either the government, or the Banking industry will shut it down. If they cannot, then they will buy or control it.  

This is a war between Mice and Cats. Every time the Mice (people) find a new way to avoid the Cats (Banks) monopolistic ways, the cats do something to throttle the Mice. Sometimes it is by developing their own Tech. Sometimes it is by using the government regulatory agencies to help them. Sometimes it is via a fear campaign. 

Usually, it is all three. Banks are developing their own proprietary Blockchain products. Governments are restricting ways to use Bitcoin. And finally it is done under the cover of "stop the crime"

  1. Remove cash- being done now
  2. Eliminate electronic competition - read below
  3. Co-opt, Cusip, or Confiscate Gold


Even Gold Will Be Digitized if They Win

Here are some recent headlines where Blockchain is being used to digitize Gold. All from April 11th  

  • The Royal Mint and CME Group team up to create a new digital gold product
  • The RMG blockchain and trading platform are in live testing with major financial institutions
  • An open source blockchain aims to give more transparency to gold settlement

More on this specifically later.

The walls are being built around you via monetary restrictions, taxation, debt, and protecionism ( of US companies). Indentured servitude is a generation away. 


Globalism is Global except for the Consumer

While we fret about a wall to keep undesirables out, the globalists are creating walls to keep your business in. Globalist for the businesses yes. But the consumer is slowly getting his choices reduced in exchange for convenience. Remember ATMs? They were convenient while reducing Bank costs. Now you pay to use them. How convenient.

Less economic freedom manifests itself in an inability to traverse national boundaries for trade and free market pricing. So, while Bitcoin is not a national currency and  is thus economically borderless and free, it does depend on national currencies being permitted to be used in exchange for Bitcoin. And that is where the Banks will throttle it. By restricting money to be exchanged for Bitcoins, they kill the product outside their network. 

Banks Find a Way to Survive

This paves the way for the Bank replacement coming soon. Like a Visa card  with instant settlements. That is the future application of Blockchain. Technology that removes the banks' clearing risk while keeping the client captive in their system. Technology is disruptive, yes. But market structure, regulatory agencies , and marketers that lobby and shill for the Banks and Government will win. Technology has no protective moat by nature. It is that quality which will allow Bitcoin to be owned by the powers that be. 

As the cash in India is being replaced by Visa cards, so shall the Bitcoins be replaced by bank or nation state branded versions of themselves.

    Are you ready to exchange more  freedom for conveneince?

    Read on for a real time example

    -Vince Lanci


    Traders Flee Bitcoin Exchange Bitfinex As It Pauses Wire Transfer

    via cointelegraph.com

    What is happening to the world’s third largest Bitcoin exchange in terms of trade volume, according to CoinMarketCap, is quite unclear.

    Further to its notice of withdrawal delays last week, Bitfinex has announced on Monday that all incoming wires to its exchange will be blocked and refused by its banks in Taiwan.

    Though no particular reason was given for the latest development, what it clearly shows is that all is not well with the exchange and its banking operation.

    How long would existing funds on its platform last?

    If Bitfinex can’t accept incoming wires, for how long would existing funds on its platform last? It announced last week that its normal channels that it has been operating through in the past are currently unavailable. Hence, customers requesting USD wires were advised to expect delays until the withdrawal process is normalized which has no definite estimated time of accomplishment.

    In the announcement which came out late Thursday, Bitfinex had put out its previous notice about a four day bank holiday that will run from Friday, April 14 until Monday, April 17. As it's just before midnight on Tuesday, April 18 (Hong Kong time), the exchange put up the latest vague and somewhat impromptu notice saying that all incoming wires to its accounts that would be effective April 18 (Tuesday) would be blocked.

    Bitfinex explains:

    “This applies to all fiat currencies at the present time. Accordingly, we ask customers to avoid sending incoming wires to us until further notice, effective immediately. We continue to work on alternative solutions for customers that wish to either deposit or withdraw in fiat and are making progress in this regard.”

    What could have possibly gone wrong?

    Several thoughts come to mind. The exchange’s account could have been closed by the banks considering the fact that the announcement made no mention of outgoing non-USD withdrawals.

    There is also the possibility that the exchange has violated any of the anti-money laundering regulations that may implicate the banks. Or it could be that the banks’ tightening their control is an indication of the start of a war against Bitcoin. There seems to be so much to say about the downside risk.

    What is clear though from the information provided is that the unfolding situation does not point directly to the fact that Bitfinex is insolvent.

    It is likely that the disruption to the exchange’s cash flow will cause panic and many customers will be forced to move their assets out of the exchange. At least for now, unless a remedy is sought on time.


    In Other Bourse News: China Gets Crude Futures

    LSE: former MTS CEO said that, as part of Brexit talks, it’s provided for in Italy’s banking and financial market laws, which allows the Treasury to take ownership of Borsa Italiana if it judges that national interests should come before the market operator itself. DB1 hiring freeze continues after the failed merger with LSE. DB1 suspended hiring at the end of February after releasing earnings reports. NDAQ launched a venture investment program, Nasdaq Ventures, dedicated to discovering, investing in and partnering with unique fintech companies worldwide; the main objective is to identify and collaborate on new technologies and groundbreaking services and solutions. CME will launch SAR options in April and Bursa Malaysia derivatives currency futures in June, expand FX derivatives offering. Reported by FOW. LSE purchased 67.5k shares at 3,201p per share, as part of its £200m repurchase program. Total purchases add 726k shares up to date. Shenzhen SE and CSRC will increase real-time supervision of trading in newly listed and “Xiongan concept” shares. Reported by the South China Morning Post. Bitfinex, one of the largest Bitcoin exchanges, said it couldn’t enable customers to withdraw or deposit money except in other virtual currencies, according to WSJ. BlackRock 1Q17 earnings jumped 31% y/y as inflows to its iShares ETFs tripled from a year ago to $65bn in the quarter. US Supreme Court raised concerns about whether the SEC should be able to order defendants to fork over illegal profits that date back more than five years, according to Reuters. CFTC extended its no action relief for swap dealers that are subject to the margin requirements for non-centrally cleared OTC derivatives in the European Union (EMIR RTS) for failure to comply with the CFTC’s final margin rule. China will launch crude oil futures in Shanghai in 2H17, according to Reuters.


    About the Author:

    Vince Lanci has 27 years’ experience trading Commodity Derivatives. Retired from active trading in 2008, Vince now manages personal investments through his Echobay entity. He advises natural resource firms on market risk. Over the years, his expertise and testimony have been requested in energy, precious metals, and derivative fraud cases. Lanci is known for his passion in identifying unfairness in market structure and uneven playing fields. He is a frequent contributor to Zerohedge and Marketslant on such topics. Vince contributes to Bloomberg and Reuters finance articles as well. He continues to lead the Soren K. Group of writers on Marketslant.

    Twitter: VlanciPictures

    Website: Echobay.com

    Email: vlanci@echobay.com

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