Are we on the verge of the next great crypto boom?
Perhaps just the thought of this makes the words ‘Oh god, not again’ come to your mind.
Or perhaps your heart is beating a little faster from adrenaline.
And for good reason.
Because the bitcoin bulls are back in town, baby!
For the better part of 2018 (actually, all of 2018), bitcoin was going down.
Some even called for the end of the digital currency completely.
I haven’t been a buyer either since the bubble burst in 2017.
One thing can’t be denied. Bitcoin has risen over 70% since the low in December.
The bears have gone quiet suddenly.
And I just saw something very interesting…
The typical Aussie house auction just met the 21st century
James Pratt Auctions Group thought now was the perfect time for Australians to see the future.
And they did it in style while hosting Australia’s first live property auction with the bids called in cryptocurrency.
The luxurious 841-square-metre property, located in Casuarina, New South Wales, didn’t fall short on excitement.
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Over 200 people turned up to watch the live auction take place.
Admittedly, the excitement ended quickly for the vendor when the property fell short on hitting its original reserve
It was a nice try.
But it was interesting to note that despite the 84% decline in the value of bitcoin last year, the sellers used this as a marketing technique. It would appear there is still an unappreciated demand in the market.
It may signal a potential bull run coming…
The million-dollar cryptocurrency
I’d like to introduce you to a man called Wences Casares.
Casares is an Argentinian technology entrepreneur. He sees bitcoin as an experiment. And he puts the potential upside at US$1 million per coin if the experiment works. I value his opinion highly.
Let me add that this forecast is one of many possible outcomes.
Here’s the deal…
There will only ever be 21 million bitcoins in existence. Casares has declared that bitcoin may become superior to gold and even the US dollar.
‘If Bitcoin succeeds it will most likely not replace any national currency. It may be a supranational currency that exists on top of all national currencies. If Bitcoin succeeds it may be a global non-political standard of value and settlement.’
This implies a huge potential market and the rationale for a huge potential rise in the price of bitcoin.
But one thing makes me sceptical of this kind of forecast…
I’ve tracked bitcoin since its infancy.
I can see and understand how bitcoin could be a dominant player in international payments and as a store of value.
After all, it was the original crypto — and is still the most valuable.
But I simply cannot see any government accepting bitcoin at the peak of the payment hierarchy. That’s because part of bitcoin’s design is to limit political power via control of the financial system.
Here’s my take…
The International Monetary Fund (IMF) will launch an internationally accepted cryptocurrency.
The IMF and the World Bank have already announced their own private blockchain and quasi-cryptocurrency, called Learning Coin.
It has no value.
The quasi-cryptocurrency will be used solely for educational purposes.
The IMF and the World Bank intend on learning how the blockchain works. Presumably, they’re doing this to put their knowledge into practice at some point. That could allow them to assume much more control over the global financial system than they have now.
The global reset
Of course, the world won’t accept it overnight.
It will need some form of global monetary reform.
A reset, so to speak.
Most likely, after the next global financial crisis.
We can’t be certain when that happens. But financial crises come along every decade. 2008 is a long time ago now. The clock is ticking…
Here’s what we do know.
Casares may be correct in saying that bitcoin is a new global standard of value.
But the tables will quickly turn when governments of the world agree on an international blockchain.
Or localised, national blockchains, which governments can regulate, that will create ‘virtual’ tokens of Aussie dollars and Japanese yen. Governments simply will not allow the market to use a currency that is outside their control.
After that, it will only be a matter of time before we all kiss goodbye to bitcoin. Government power and privilege will crush it.
Until next time,