Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
OK, here's the funny thing. The central bank can bloviate all it wants. In the end the people have the power. (OK, it wasn't exercised in this recent India demonitization, but we should be ready for the next ((hint: it's coming to you)) ).
What do I mean? India was about 80% cash. Why would the people not just reply with 'fuck you - we'll just keep using these notes the same way we have been'. Nothing changes. 80% of all transactions continue being done in cash -- not recognized by the gubmint, but who the fuck gives a shit -- and Modi ( and his wall street financiers) get to stew over in the corner. I mean really -- for the people, what is the downside?
The problem is that you have to trust every other member of society to honour the value of that non-government-backed cash. It's like a massive game of Prisoners' Dilemma. Personally I wouldn't trust other people to maintain the value of my wealth (any more than I'd trust the government). Unless it has some sort of very widely recognised/intrinsic value, you're playing a very dangerous game.
Usually a physical type/shape/form of money if it has no real application or usability in the real world, it has no value.
*edit: And what the world has experienced in these last 40-50 years, it was just fairy/pixie dust make belief... It is dying soon and quickly! People want their power and wealth control back!
*edit2: Basically what we had till now was a time limited system that was a product of our isolation as nations. But since the internet and global awareness started to spread its roots (and you can't put that cat in to the box once it was out, communication is a basic need), that dream/illusion started to fade away! Because when people became aware that some places had money with more value (like Germany), they started to migrate there. And as a consequence the word is forced to go in to one global single currency, so the migration and all this nonsense will stop. (But they can't use gold, because they don't have enough of it and its too complicated to use it on a large scale and authenticate it without the proper technology.)