November 28, 2017
Bitcoin is a perfect currency, Beyond the reach of any nation-state or cooperative effort to defeat it - Max Keiser
By Ashour Iesho - November 27, 2017 (bitcoinist.com)
Although many experts still believe that Bitcoin, and the cryptocurrency market as a whole, may be in a bubble state, Max Keiser believes that Bitcoin still has room to grow.
Bitcoin is making headlines – again – as it continues to shatter milestone after milestone. Most recently, the popular digital currency passed the $9000 mark and is quickly edging toward $10,000. According to a recent article by RT, well-known American TV broadcaster Max Keiser believes that Bitcoin still has the potential to climb as high as $25,000 before having a correction.
"Up until that price is achieved it looks like we’ll see a pretty strong upward move".
He also believes that the huge inflation rate of major fiat currencies like the US dollar is causing Bitcoin to rapidly rise.
"I think we are seeing fiat currencies in a hyperinflationary collapse against bitcoin".
Keiser posits that one of the reasons behind Bitcoin’s price surge is because it is the perfect alternative to traditional financial systems that are used by banks and other financial institutions:
"Bitcoin is a perfect currency, something that is utterly changing the global finance and market and is putting banksters and the central banks out of business".
Many banks have expressed their desire to work with blockchain technology, but most of them are not yet open to Bitcoin and other cryptocurrencies. The reason behind their reluctance is the fact that banks cannot regulate – and therefore cannot control – the popular decentralized cryptocurrency.
Another interesting use case for Bitcoin is bypassing government controls and sanctions. Since many countries around the world are currently under financial sanctions, Bitcoin is an easy and efficient way for them to surpass these restrictions. Max Keiser thinks that the fact that governments can’t stop Bitcoin, is giving it immensely value and trust.
"That’s something that no central bank or country will be able to stop, and it’s becoming a real scenario, a real threat".
An interesting remark that Keiser made in the article, is that Bitcoin might become a “financial black hole” where people are rushing to sell stocks and bonds and transfer that money into the decentralized cryptocurrency. If that happens, there is the very real possibility of a stock market or bond market crash, perhaps even both.
Images courtesy of Shutterstock, Pixabay, Wikimedia Commons.
October 21, 2017
By Daniel Duarte - October 21, 2017 (cointelegraph.com)
In my first article for the Cointelegraph I tried to explain the value of Bitcoin to citizens of countries that practice capital controls, which are usually countries with less economic development.
A day later, I read an article where the president of the Central Bank of Brazil exposes his lack of understanding and appreciation about digital currency, which could be such a boon to citizens of my native country, Brazil.
I believe that the best way to explain it is through practical examples, so I will summarize my experience with the legal tender currency of my country.
I was born in 1981, during the decade of hyperinflation in Brazil, I remember that it was normal to see the supermarkets crowded during the first week of the month. This is because on payday, everybody groceries for the entire month since prices were changed every day, sometimes more than once a day.
Our money lost value every minute, while the government's printing machine worked at a frenetic pace.
During more than 10 years of hyperinflation, several leaders sitting in the chair of the Finance Minister or the President of the Central Bank tried to reduce or minimize inflation. They didn’t do it the hard way, and the way that might have worked, by cutting government spending. Instead, these men had pipe dreams, coming up with economic plans they thought were most miraculous.
One of these pie-in-the-sky plans definitively marked the Brazilian people. During the government of President Fernando Collor, the Minister of Finance, Zelia Cardoso de Mello, confiscated all the money that Brazilians kept in banks. The idea was simple: without money there would be no demand for products, so inflation would be controlled.
Obviously this didn’t work to save the economy, but it did devastate many Brazilians. Some, like my grandfather, relied on their life savings to pay for their medical care. These people were badly hurt.
What does history teach us?
First of all, a deflationary currency such as Bitcoin, whose economic model is based on that of thinkers like Frederich Hayek, is valuable to all citizens of countries that fear of inflation.
Second, inhabitants of countries that have already experienced economic chaos know how valuable it is to have assets that cannot be confiscated overnight. Today we have examples such as Venezuela, and a few years ago, Argentina.
There is a popular saying in Brazil that a dog that has been bitten by a snake is afraid of a sausage. In America, you might say “once bitten, twice shy.” Those who have lived through hyperinflation can really understand the value of a deflationary currency.
That's why we love Bitcoin, and why most of the central bankers hate it. Deep down they are envious, even fearful, of Bitcoin’s economic model. Bitcoin has achieved what is impossible for them, the creation of the first truly deflationary currency that’s free from the mismanagement of governments.
October 20, 2017
By Francisco Memoria - October 20, 2017 (www.cryptocoinsnews.com)
According to TheNational.ae, bitcoin adoption in Zimbabwe is seemingly skyrocketing as the country’s economic situation looks bleak. So much so, that one bitcoin is trading at nearly $10,000 on the Golix.io exchange, while the global average is, at press time, of $5,642.00.
According to a local trader, bitcoin isn’t just being bought by individuals, but by businesses with bills to pay. The country adopted the U.S. dollar back in 2009 as its fiat currency, as the Zimbabwean dollar had lost nearly all its value.
At press time, LocalBitcoins Zimbabwe has people buying bitcoin at the global average, and some buying the cryptocurrency for cash for well over $10,000 in the country’s capital. Bitcoin, as every bitcoiner would expect, is helping people in the country survive times of economic uncertainty, as Zimbabwe has been embroiled in a crisis for years.
Why Bitcoin Is So Valuable in Zimbabwe
In the early 2000s, according to the publication, Zimbabwe’s president, Robert Mugabe, encouraged citizens to invade commercial farms mostly owned by UK descendants. Following these invasions, the country’s agriculture collapsed, which led to the Zimbabwe Reserve Bank to run out of money.
In the mid-2000s, the bank decided to print Zimbabwean dollars to pay the army, civil servants, and police. The mass printing of dollars, as one would expect, led to hyperinflation to the point in which a customer walked into a store to buy bread, only to find its price had tripled once he arrived – if it was even available.
The problem got so bad, people carried around piles of valueless cash, and soon started hoarding goods to use as a medium of exchange. Then in 2009 Mugabe gave in and replaced the Zimbabwean dollar for the U.S. dollar to get rid of hyperinflation.
It worked and prices stabilized, but since the Zimbabwe Reserve Bank can’t print U.S. dollars, the country now imports them to get them onto the financial system. Speaking to a local publication, the reserve bank’s governor John Mangudya stated:
“Yes, we import cash almost every week and we are now importing $10 million on a weekly basis. When we say we import cash, we say we import dollars because we said we want to continue using the dollar in this economy.”
Then, with nationalization intents, exports started collapsing and now, according to Bloomberg, banks ration dollars to as little as $20 per person, regardless of how much each individual has in its bank account. Some even sleep outside banks to guarantee notes won’t run out before they get them.
The country’s central bank, to fix the problem, started issuing so-called bond notes that supposedly have the same value as the U.S. dollar. Most don’t fall for that, as foreign suppliers reportedly refuse to accept them, and some businesses charge premiums of up to 50% to accept them.
According to economist Vince Musewe the problem in Zimbabwe today isn’t the lack of goods to purchase, but the lack of money to do it with – exactly the opposite of what it was when the country’s crisis initially started. He stated:
“Then, there was plenty of cash money, but no goods in the shops. Now, there are goods on the shelves but no money to buy them with.”
To escape the country’s crisis, Zimbabweans are now turning to a currency that won’t fail them like fiat currencies did: bitcoin.
Posted by Francisco Memoria
Francisco is a cryptocurrency writer and trader, who's in love with technology and focuses on helping people see the value digital currencies have. Twitter: https://twitter.com/FranciscoMemori