Bitcoin As The Foundation For A New Financial System
For a long time, many in the cryptocurrency world discussed the idea of a "new financial system". It is obvious the present one is not working for most people. With each passing year, wealth inequality grows, putting more resources in the hands of fewer people.
Bitcoin was created to be an electronic, peer-to-peer payment system. While it still has that attribute, it is evolving into something much more important.
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)The recent interest in Bitcoin is starting to awaken the financial community to the potential of what is developing. These moves are going to be a part of a larger strategy that puts Bitcoin as the center of what is evolving.
Many have called it "digital gold". This is accurate if we are focusing solely as a store of value. It is believe that a good target price for the market cap of BTC is the $7-$9 trillion that gold already occupies.
However, this is likely just the beginning. Many are starting to speculate the impact of Bitcoin on markets such as bonds and real estate. When we factor these in, we are looking at hundreds of trillions of dollars in value.
Bitcoin might end up being the foundation upon which all else is built upon. The store of value could evolved into a collateralized asset from which derivatives spring forth. Our entire debt system is, ultimately, built upon nothing but people's faith in government and currency. With Bitcoin, it would be a hard asset underlying it all.
Of course, this is not the only game in town. There are thousands of cryptocurrencies, all focusing upon different use cases. Bitcoin was originally slated as "the people's money". Due to its scarcity, this is not going to be the case. With Wall Street starting to dip its toe in, we can already foresee where this is going.
Bitcoin will ultimately be in the possession of Wall Street and governments. Those with the big money will eventually end up with it.
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That is only a piece of the puzzle. Other cryptocurrencies such as Ethereum are also going to fill many voids. The global custody system, for example, is worth more than $20 trillion. Here again, we see the ability to move trust away from 3rd party entities and onto a decentralized blockchain.
As the integrated network of blockchains is built out, people will be interacting using many different tokens. The monopolistic control of currency creation is ending. No longer is it in the hands of governments/central banks. In the near future we will see the shift towards the tokenization of most everything.
Bitcoin is amazing, albeit outdated, technology. It is far superior to the system that is in place now. Of course, the technology that evolved since Bitcoin was introduced has surpassed it. That is why this entire premise is evolving. Different facets are being addressed.
This is not going to be a "winner take all" type of situation. Most tokens that have development behind them will have their place. Naturally, the use case for many will be quite isolated, affecting their usage as well as the value. Nevertheless, when we look at the collective, we see the entire system operating in a more inclusive way.
It is due to the decentralized nature of the entire industry that makes it more resilient than anything we presently see from the existing financial model. While it is possible to point to any one blockchain or project and note how centralized it is, when we step back, we see how wide things are spread.
And it is only expanding.
Each day, more tokens are distributed. There are whales in many different projects, most of them not overlapping. The Bitcoin whales are not the same as Ethereum; who differ from EOS or Cardano. All the way through the system, we see people holding different tokens, thus having wealth spread out. For now, it is still a rather small number of people involved but it is growing at a fantastic rate.
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The financial innovation is just getting started. When we look at how large it truly is, we see the numbers can get enormous. Tokenization is a way for all across the globe to tap into it. The days of the under and unbanked are going to come to an end.
Politics is rapidly being removed from the equation. It is too easy for corrupt or inept governments to destroy their currencies, thus imprisoning their entire population. This ends up favoring the debt holders who are able to "foreclose" when things get dire enough. Often, national populations are further enslaved through debt agreements reached with international banks to alleviate the problems created by said governments.
Cryptocurrency is quickly expanding, to the point where it is close to being outside the control of any government. It is likely that they all could unite together and put a stop to it, but it would require 100% agreement. Since we are in such a divided world, the likelihood of that happening is nil.
If it is even possible, which is debatable, another year or two of development will put this thing out of reach. Bitcoin is starting to enter the vaults of the traditional financial institutions. We are already starting to see funds created that are using Bitcoin and other cryptocurrencies. Ultimately, trillions in derivatives will be built upon the major cryptocurrencies, further cementing it as a central component of the financial system.
At the same time, hundreds of other smaller funds are being created around the world by people, following the same model. This is mirroring what Wall Street does but enabling average people to get involved. This is a radical difference from the process as it operates now.
The advantage that cryptocurrency has is that, at its core, it is information. It truly is nothing more than data. This leads some to believe that it does not have value yet, as we are learning, data has enormous value in a digitized world.
Another benefit is information yearns to be free. It expands and grows. As more information becomes available, we are able to improve our processes even more. The world keeps advancing as the information basis grows.
Cryptocurrency is aligned with this. It is not something standing on its own. This is all part of a larger process that is taking place.
It is a component that many miss.
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I like that Bitcoin can be identified far beyond just one investment asset.
Bitcoin can become a real payment system and this will make a difference with gold.
Bitcoin is an active investment while gold is a passive investment
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Cryptocurrency is the key to having a decentralized world at large, it's also easy to access without a middle man which are the banks who even charge for the service they provide. Bitcoin is changing that, even with the small percentage of world population that are into it, it keep striving and keeps the momentum going.
A world where every single person has a bitcoin/cryptocurrency wallet will bring about financial freedom to everyone, as you own your key and you alone is in cotrol.
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I understand that Bitcoin was created to equalize, to belong to the people, and it finally reaches the pockets of Wall Street, as you like to call them. So can it be said that Bitcoin has not succeeded in this intention and that Wall Street will always succeed in taking the cream? Ordinary people will benefit, but they will only take the crumbs. As has happened throughout human history.
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I understand that Bitcoin was created to equalize, to belong to the people, and it finally reaches the pockets of Wall Street, as you like to call them. So can it be said that Bitcoin has not succeeded in this intention and that Wall Street will always succeed in taking the cream? Ordinary people will benefit, but they will only take the crumbs. As has happened throughout human history.
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That is true but it did open the door for thousands of other currencies which can fill many different roles.
One of the shortcomings of the original vision is that it did not end up as an electronic payment system from the start. Thus, it took on the role of store of value, putting it into the fiat money game.
Other coins will serve that role I believe, generating plenty of wealth for all along the way.
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Maybe, i think bitcoin not filling the role of a digital currency was a setback. I almost feel like it was a last minute scramble from venture capitalist to try to find a way to make money from it rebranding it into store of value which was more than likely incidental. It works but probably still ill prepared. .anytime you gotta repurpose things.
Also by it not doing the job well at all of digital currency and being gold it now falls into the same issues as gold. One big issue with gold wasn't enough to go around and it created less economic prosperity. When you have less use of a financial vehicle it's generally less economic prosperity. So everybody talking about betting on the price of gold to go up here over utility lol. Well who benefits from that? Not the poor guy on the ground. The wallstreet guys do this right in their ballpark. Thats why they driving the bull run they are the only ones who can benefit from it. The average hard working living paycheck to paycheck stiff. He probably not sitting on gold bars in his investment portfolio. This guy needs more distribution and more money to move so he can get a better shake. If your product can't move efficiently and everyone holding it and not spending it. Then its doing less of that. The people who hold any substantial significant money in btc wallets are few and far between.
Satoshi or the Satoshi Group i mean honestly we don't even know who this is? lol. It could be Russia or the Cia. It could be a playbook from the matrix films where they see this tech is coming and hey we already know whats going to happen lets control it and let people think they are in control. So they lost their collective you know whats when facebook decided to launch their crypto.. i mean its cease all operations now. They let us walk around and hold bitcoin and i dont think thats because they feel they can't stop it. I think it's more like if they felt they couldn't stop it they'd be doing all they can to act as if they in control and can stop it lol. As well as they'd just make using it illegal. They could just say its a national security threat you violating aml and kyc laws to the point we can't have that. You got money being used and funded through this from a terrorist state, or they could just be fine because they know what btc is and who started it lol.
Anyway getting back to Satoshi or the Satoshi group we know they control 5% of it.. whether they benevolent or not. Then we have greyscale and all their similar like enttities getting in the fray thats probably atleast another 5%. Wallstreet digs in deep who knows what the ownership rate of btc will be then may be over 20%.. and that would just be counting the people who publicly we know and who are identifying themselves and maybe not rogue states lol.
It always sounds bad when i talk but the more info we have the better. As far as altcoins balancing out this possible btc takeover by everyone but the people who it was meant for. They have the problem so far of just not having enough wallets. Bitcoin has about 50-75 million dont know if they all real or duplicates. I"m sure they probably the latter. Then you got maybe next ethereum and then its like a drop off to maybe like 4 million wallets on your next project and it goes down to very little after that. So these projects would need significant wallets and idk getting more wallets and more users comes down to demand and need. Significant need and use and demand. Otherwise idk may just not work out like we think. However i do feel i sense there will be certain areas of the blockchain that may work and gain alot of users it may just be the technology it may not be based on a coin at all. It will be interesting to watch nevertheless
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I agree with you. The collective of cryptocurrency is what gives humanity the chance. Who knows, like you said, Bitcoin might have been a ruse of the wealthy/state/elite from the start.
There are nowhere enough wallets out there to make a difference with the people who need it. We need to see a 10x within the next year to be of impact.
More for Wall Street is not going to change anything.
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Exactly but blockchain technology does exist and can be useful. I just feel like these guys smart enough to direct us to the wrong ones. Could be a conspiracy theory but even if it were. Wallet distribution has to get better. If i'm a rich guy i got absolutely no reason to sell bitcoin. I'm not going to trade it. It's not going to create better distribution or velocity of money none of that It's a rich person with disposable income toy. You're right more Wallstreet just pretty much means more of the same thing we already have. Again blockchain tech i believe will open up some doors. It will set us on the right path. However i wouldn't get over religious about bitcoin. It's so many stories out there about bitcoin's cia beginnings it would make your head spin. We'd have to be very naive to think that nations are this quiet and don't feel threatened by something like this. They'd take action as some have. I just don't believe ever this could be so easy.. i gotta post this again because i think its a great video .. people can say what they want about jordan belfort but i think he nails the type of reasoning i think the governments have about crypto absolutely right lol
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Do you remember or did you learn that in the U.S. the government outlawed gold? Gold is a lot more private than Bitcoin and now we are all KYC they know who owns bitcoin.
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I understand (if I understood correctly, but I'm not sure about that), there will be several currencies that will have certain functions or features and will be used only in certain areas. Interesting but maybe complicated for normal people ... but interesting.
How is Hive, which works in this blockchain, like a currency. We can say that Hive or another currency will be the currency to reward bloggers ... all bloggers from different blockchains to adopt a single currency.
No, I think I'm wrong somewhere.
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Bloggers arent adopting a single currency. We already see many are being used. That is likely the path things take.
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Of course, this is already happening. I was thinking that maybe in the future it will change in some way, there will be mergers, you see, I think in terms of the past because I can't imagine the changes that will come.
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Am I right in reading that BTC only has a market cap of about 350 Billion right now? If that is the case, it has a long ways to go before it is in the range of gold. I think it can make it there, but as you mentioned, it feels like we are still in the very early stages.
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You are reading it correct.
We could see a 20x and still not reach goal. That is how much room for growth.
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Wow!
One thing I really love from blockchain and cryptocurrency is that the intermediaries are the users of the network. I like how this new system is more based on the contribution and cooperation of all its users and everyone wins. Of course, a lot of users (aka whales) will always exist but everybody can take part in the game and with hard work, we can create and increase our own wealth.
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Cooperation replacing competition is vital.
That will be a huge shift. Collaboration is taking on new meanings.
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Crypto is the future.
I think the unfortunate part behind how blockchain is perceived in the public is that it is just “digital money”
People don’t understand the value behind incorporating blockchain, and the companies still profiting will forever turn a blind eye - til they are forced by market adaption.
Bitcoin started the revolution and will always be remembered as the beginning of everything.
I mean, it's like the ground zero of the new financial market.
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There is no doubt about that. We are seeing it as the foundation for something completely new.
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btc will always lead the way, there are huge volumes of money behind it and many governments, corporations have adopted and bought some etc etc So it is and will be the leading way on a new financial system
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It is going to hold appeal to many larger organizations for many reasons.
I wonder how long until we see governments making the plunge. Smaller, financially struggling nations would be smart to jump on some bitcoin.
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Though it may hold sway as a market instrument because of external factors to it, it doesn't have the flexibility of say EOS or Ethereum. We are seeing Ethereum stay rather stable in BTC terms as it rockets above. Hive dollar is holding its own at the pegged price it was supposed to be. That is probably the bull market or it might be thanks to QE making the dollar worth less.
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I was very struck by what you said about what financial institutions and governments are doing that they are now using more crypto currencies such as bitcoin. I personally think this is a bad idea since they are always going to try to balance the scales in their favor and not in others' favor so many can be affected.
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In many cases BTC serves as gateway to other crypto currencies.
Technology is changing and improving every second. All we have to do is catch it up.
Interesting article, "Bitcoin is well known in its medium" but outside the Internet, the difficulty of adoption for the average user becomes more intense. I don't like to talk about the value of btc but we are only at the beginning of the road, there is still time for everyone, we just have to help the one who doesn't know that much about technology and educate as much as possible.
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Bitcoin was created to be an electronic, peer-to-peer payment system. I like it
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We are surely living in exciting times!
This is so true! And the longer people remain on the sidelines, the harder it will become to get involved in Bitcoin as Wall Street and governments will already be in possession of large amounts which will make it more expensive.
But what excites me most is the development that is taking place in the cryptocurrency world as you describe it in your post. That gives us a wider perspective than just looking at Bitcoin alone.
Bitcoin is king, we all know that. But I think what you have done in this post is similar to the term you sometimes hear in trading..." don't panic, zoom out to see the bigger picture".
You have "zoomed out" and showed us the "bigger picture" of what the cryptocurrency world is all about.
Thank you for sharing this information!
Countries are aware of the situation and take measures with their own means. They are working on infrastructure for crypto money. Blockchain Technology and Cryptocurrency will shape our future. But most people are not aware of this. Are you aware?
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