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Thread: Cryptocurrencies

  1. #11

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    All very good points!

    Let's suppose the United States hit the skids and the USD was in free fall with runaway inflation. Precious metals and Cryptocurrencies are the only way to conduct business. The government does what they did in 1933, and asks us to turn in all our PM's. Just like bump stocks in New Jersey, nothing happens. The government then turns its eager eye to Crypto currencies, and outlaws them. Nothing happens because the government can't control them. But this time they have an answer: they shut down the internet in the US.

    Now. Let's look at what shutting down the internet will do. Banks have to transfer money physically, like they used to in the 60's. The stock exchanges will have to go back to paper trading, and even if there is money flowing in the economy, it will grind to a halt. They will have to use the Fed to handle money transfers. The few branches of the Fed can't take the volume, and only a few major cities have a Fed branch anymore. Bank transfers happen electronically now.

    All of our phones stop working even land lines. Much of the phone communications are done over the internet at some point. Even the switches use the internet to communicate so they get the billing correct. VOIP, Cell phones, TV, some syndicated radio, late model cars, TV's, obviously computers, household appliances, alarm systems, and the list goes on to include anything with a computer in it. All of those things will work on a very limited subset of features, if they work at all.

    The government will have 323,000,000 people all highly upset because their tech no longer works. They will have to shut down the power grid too. That spins out into a whole other *%()#)_ storm of problems which we all know spin into chaos.

    As soon as the internet comes back, Cryptocurrencies will be there working as if nothing happened. Because they didn't confiscate each and every device able to connect to the internet including every zip drive, every micro sd card, everything.

    Block chain:
    It isn't very hard to imagine, if we look at it functionally. It is a record of every transaction ever made using whatever digital token the block chain is used for. Digital tokens are Bitcoins, Europium, Litecoin, what ever. Blockchain does this by combining 2 part encryption with distributed processing. We have seen distributed processing, when ever you order something from Amazon. Many computers and many warehouses are used to fulfill an order. We see 2 part encryption every time we use a password and pin to log into an account. Make the pins impossibly complex and link them to the distributed process of money transfers, and voila! BLOCKCHAIN.

    An interesting little factoids:
    1) As anonymous and safe as bitcoin is, the vast majority of illicit transactions in the world use USD.
    2) When the government prints money and puts it into circulation it is called "Quantitative Easing". When people print money and put it into circulation it is called "counterfeiting"
    We learn from history that we do not learn from history. Georg Wilhelm F. Hegel

  2. #12

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    Quote Originally Posted by GR82BPREPD View Post
    All very good points!

    Let's suppose the United States hit the skids and the USD was in free fall with runaway inflation. Precious metals and Cryptocurrencies are the only way to conduct business. The government does what they did in 1933, and asks us to turn in all our PM's. Just like bump stocks in New Jersey, nothing happens. The government then turns its eager eye to Crypto currencies, and outlaws them. Nothing happens because the government can't control them. But this time they have an answer: they shut down the internet in the US.

    Now. Let's look at what shutting down the internet will do. Banks have to transfer money physically, like they used to in the 60's. The stock exchanges will have to go back to paper trading, and even if there is money flowing in the economy, it will grind to a halt. They will have to use the Fed to handle money transfers. The few branches of the Fed can't take the volume, and only a few major cities have a Fed branch anymore. Bank transfers happen electronically now.

    All of our phones stop working even land lines. Much of the phone communications are done over the internet at some point. Even the switches use the internet to communicate so they get the billing correct. VOIP, Cell phones, TV, some syndicated radio, late model cars, TV's, obviously computers, household appliances, alarm systems, and the list goes on to include anything with a computer in it. All of those things will work on a very limited subset of features, if they work at all.

    The government will have 323,000,000 people all highly upset because their tech no longer works. They will have to shut down the power grid too. That spins out into a whole other *%()#)_ storm of problems which we all know spin into chaos.

    As soon as the internet comes back, Cryptocurrencies will be there working as if nothing happened. Because they didn't confiscate each and every device able to connect to the internet including every zip drive, every micro sd card, everything.

    Block chain:
    It isn't very hard to imagine, if we look at it functionally. It is a record of every transaction ever made using whatever digital token the block chain is used for. Digital tokens are Bitcoins, Europium, Litecoin, what ever. Blockchain does this by combining 2 part encryption with distributed processing. We have seen distributed processing, when ever you order something from Amazon. Many computers and many warehouses are used to fulfill an order. We see 2 part encryption every time we use a password and pin to log into an account. Make the pins impossibly complex and link them to the distributed process of money transfers, and voila! BLOCKCHAIN.

    An interesting little factoids:
    1) As anonymous and safe as bitcoin is, the vast majority of illicit transactions in the world use USD.
    2) When the government prints money and puts it into circulation it is called "Quantitative Easing". When people print money and put it into circulation it is called "counterfeiting"
    It is possible for internet access for the common people to be restricted, while the .gov and banks can continue internet access and business. They would not shut down everything, just strictly control the access. When countries such as China "shut down" or restrict internet access for their citizens, their .gov, military, and controlled financial institutions still have access and conduct business as usual.

  3. #13

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    They can "restrict" access, but cryptocurrencies are more than a medium of exchange. They are the platform, a record, and a peer to peer network. As an experiment, I put one of my expendable wallets on a Logitec remote. Like I say, what is driving banks, countries, and other financial institutions crazy, is it can't be controlled.
    We learn from history that we do not learn from history. Georg Wilhelm F. Hegel

  4. #14
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    what is driving banks, countries, and other financial institutions crazy, is it can't be controlled.
    Then why are banks, countries, businesses, and other financial institutions creating their own crypto's?

  5. #15

    Default

    Good question, hiwall!

    Cryptocurrency is a platform that can used to confer ownership of just about anything. Consider. Car purchases as an example. Keep the database controlled, and dealerships have access to add records to the blockchain, but the state DOL can access the entire blockchain along with the police (not much different than the current system) We never have to carry registration or anything else. You could also buy a car from a vending machine. Completely secure and not anonymous. Buying cars today is not anonymous . Banks could use the technology to sell securities, manage ATM's, Purchase On Site registers, the list goes on. Buying houses or property would be simplified. No title search. No

    The idea is control. Banks love the technology. They pay me enough to teach their programmers about it! They hate the "feral" cryptocurrencies out there, because there are no controls on them. Having said that, banks could really mess up a crypto application, by using the wrong private key. That would expose us to yet another avenue of intrusion into our lives by identity thieves. Most of my presentations and classes deal with anonymizing information within the blockchains including the keys.
    We learn from history that we do not learn from history. Georg Wilhelm F. Hegel

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