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The day we hand over our fiat for government backed cryptocurrency


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Formulating a Game Plan

I feel it's time to get bum off chair and put finger to keyboard once again. I write this on the back of an article about coronavirus in Iran. Did you know if you broke the coronavirus restrictions in Iran, you could be fined 10,000,000 Rials? That is about $37 dollars. No currency starts out using millions - it would be just unworkable! What happened for a currency to get there? It's a long story and I am sure the gold bugs and sound money posters can explain it later. Please note I have not done an extensive amount of research into government cryptocurrencies - there are going to be questions I will be raising to provoke thought rather than to answer questions.

So we know cryptocurrencies are here to stay, and we know governments (China, EU, Bank Of England) want to make their own cryptocurrency, which will probably mean we will paid in the new digital cryptocurrency, DC for short, in return for our hard labour. It will be legal tender to pay taxes and repay debts. We in the UK have been relatively fortunate with pound sterling (OK house prices not so much), but compared to places such as Iran or Venezuela, we're alright.

We'll need a strategy or some game plan for the day when we have to hand over our fiat savings for government backed digital cryptocurrency, to ensure we don't lose out. And I feel with the Great Reset, GR, some people are going to be disorientated and will lose out. Don't forget there are huge debts run up to pay for the pandemic.

Within 5-10 years, I think in the major economies, fiat, or let's call it analogue money will be gone, and we'll all be using government backed legal tender digital cryptocurrency.

I'd like to think of a worst case and best case scenario. In the best case we'll get 1 to 1 replacement of paper money, and bank account savings into the new digital cryptocurrency. In the worst case scenario it might be 2 to 1 who knows? This could happen to reset debts, and reverse a negative interest rate policy which will probably be in place by then.

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The New Digital Currency, will it be like a physical gold standard/Bitcoin or have no anchor?

Fiat analogue money backed by debt has been a boon for governments that have spent more than receipts from tax income. They can spend, spend, spend and kick the can further down the road. I draw you to the conversation in Margin call. People say they don't want this funny money, but if they did "take the foot off the pedal, the world get's really fair really f**king fast, and no one wants that. They say they do, but they don't." The beauty of fiat money is that you can spend a deficit, almost indefinitely, or some proportion of GDP. If most of the countries of the world are doing the same during the pandemic, it won't matter, there will be no currency crisis. In fact I haven't heard about a  currency crisis mentioned at all in the media, for years now. You won't be the worst looking horse that is going into the vat in the glue factory (thanks to a poster for that quote). You can quantitative ease (QE) to your heart's content.

_115235501_qe_boe-nc.png

https://www.bbc.co.uk/news/business-15198789

Now will a government backed digital currency be a strict fixed amount, or will they be able to QE at some point when it is necessary? I would think as politicians always like to promise more than they could ever deliver to win votes, it is going to be the later. What will this mean? It will of course there will be inflation down the line - maybe even people will use their DC once they are paid, and go out and buy Bitcoin to preserve their purchasing power. I don't think people or even governments have thought about this yet. The governments can't get rid of Bitcoin - China are cracking down on miners, but I think people still are using it. So what might happen to discourage people buying alternative cryptocurrencies - perhaps they might tax people heavily if they do a direct conversion of DC to something like Bitcoin. 

What is the upside for the average Joe when you compare fiat money and DC?

None if anything that I can see. DC has all the same problems as fiat, but they have infinitely more control. The only way to put it under the mattress is to take it offline and put it on a USB stick, and stick it under the bed? Is it possible to issue cryptocurrency with a time expiry on it? If you don't spend it, it could deteriorate? 

Edited by 201p
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The new money is going to fix things.

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This is from "Underwhelmed" https://www.dosbods.co.uk/topic/15476-sunaks-economic-shock-warning/page/4/#elControls_950488_menu

 

https://www.oftwominds.com/blognov20/great-reset11-20.html

All the PR being spewed about The Great Reset is the final frantic flailing of a system that's drowning in its own excesses. The 50-year long era of the few enriching themselves as the expense of the many has ended, for the same reason eras of extreme exploitation always end--the elites got too greedy and overshot the economy's ability to sustain their rapidly expanding share of the income and wealth.

Put another way: the elites have cannibalized the system so thoroughly that there's nothing left to steal, exploit or cannibalize. The hyper-centralized global money control has run out of rope as the cheap oil is gone, debts have ballooned to the point there is no way they'll ever be paid down, and the only thing staving off collapse is money-printing, which holds the seeds of its own demise.

Allow me to summarize the only way The Great Reset envisioned by global elites can actually manifest: The Martians arrive towing huge meteorites of pure lithium and gold, and rather than incinerating the global elites, they hand the global elites the meteorites to further their concentration of wealth and power.

Short of that science fiction, this sucker's going down. The Great Reset has already run its course after 12 long years of artifice, fraud and trickery. So global elite shills, lackeys, factotums, toadies and apparatchiks--prepare for your Wil-E-Coyote moment of truth.

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I've been thinking about this a lot recently.

Something is coming, I can feel it, even if I can't fully understand or articulate it. I'm not the most clued up regarding financial and macro economic matters but I've come to realise that even I am way ahead of the average normie, who is largely oblivious to all of the stuff discussed on here.

The question I've been pondering then is how to use this slight advantage of awareness to protect myself?

 

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They will call it digital cryptocurrency but in reality it's the same as paper notes except just held on a computer.  So they can debauch it ie add a few zeros of QE any time they like plus they can see exactly how people use and spend it.  The excuse for doing away with paper money is that it stops criminals being able to launder money etc which I suppose is a point but the average person will have all their financial affairs monitored too.

Bitcoin cannot be diluted so it is the hardest of hard money which is why they don't like it as they lose control of the world's financial system.  Will the average Joe realise that government backed DC isn't the same as BTC?  Somehow I doubt it until it's too late.  Governments don't need a hard sell on DC as people don't understand money and digital cryptocurrency sounds as if it's a winner.  They will make it much easier to use DC than paper notes and coins until people give up the fight.

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Its coming but it will be as you say- digital. Itll be completely traceable and your average builder wont be able to work for cash. Itll be traceable Gov BS DC. So itll be much worse than the existing fiat. Printable at will but integrated with the latest digital payment systems, ie swift, credit card machines etc. Impossible to avoid taxes. 

The best case is that bitcoin keeps going and keeps increasing (hard money etc) and gives a few of us a chance to keep ahead of the printing press just for a while...

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https://coinmarketcap.com/headlines/news/respected-financial-historian-calls-for-bitcoin-integration-into-u-s-financial-system/

Respected Financial Historian Calls for Bitcoin Integration into U.S. Financial System

 

Financial historian and Milbank Family Senior Fellow at the Hoover Institution at Stanford University, Niall Ferguson, has penned a lengthy piece on Bitcoin which is getting noticed by the crypto community.

In it, the former Harvard and Oxford University professor commented on how the traditional naysayers and debunkers have softened their collective stances this year as the asset outperforms most other traditional investments.
 

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I think his son invested in Bitcoin. Anyway if this does happen - I don't expect Bitcoin to be the same as the Bitcoin we know today after the integration of the US Dollar. But the time before it, it will probably be much higher.

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