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Beware: Bitcoin!

Surprisingly, there is true value in the cryptocurrency marketplace but use caution.

Some products make such an impact in their niche market, they virtually define the segment. One older example is the use of Kleenex as a substitute for all facial tissue. Can you hand me a Kleenex?

Now, it would be the use of Google to define virtually all Internet searches. Just Google it.

For cryptocurrencies, it’s no different. When most people refer to cryptocurrencies, the first one that comes to mind is Bitcoin. That’s quite a feat for a market segment that’s less than nine years in the making.

Bitcoin was a pioneer when it started in 2009. To many financial professionals, myself included, it was nothing more than a novelty item. It certainly wasn’t a real investment or currency. It was created out of thin air and had nothing backing it. Worse, it was untraceable – completely anonymous, so there was no recourse if your Bitcoin was lost or stolen. It was gone forever.

It was viewed as the illegitimate brainchild of someone who wanted to work outside the system, offering a way for criminals to conduct business in the seedy corners of the dark web.

That was then. This is now.

In less than nine years, the crypto-universe has grown from one renegade “disruptor” seeking to break the shackles of a repressive monetary system to nearly 1,500 coins and tokens using blockchain technology (cryptography) to reshape the entire financial landscape.

These people are true innovators. Bitcoin may have started as an assault on cash, but the crypto-universe has far more ambitious goals. Tired of onerous regulations imposed by the world’s super-elite, new start-ups are gunning for the underpinnings of the entire financial world and beyond.

Think of cryptocurrencies like the early stages of the iPhone. There’s an app for that…

If you want to transfer money to someone (even internationally) without the fees and delays associated with traditional banking services or wire transfers, there’s an app for that, except the app is a blockchain platform that securely connects the sending and receiving financial institutions, conducts an immediate currency exchange, and allows the transfer in seconds rather than days…all for a fraction of the price. Forget the antiquated Bank for International Settlements and SWIFT payment system.

If you want to take your company public, there’s a crypto-platform for that, as well. Instead of hiring a team of attorneys to guide you through months or years of regulatory headaches, one platform promises a streamlined pathway to put your company on the blockchain for international exposure.

If you want to create a crypto-hedge fund? There’s a platform for that, too.

If you want a cryptocurrency that’s backed by real assets, they’re out there. In fact, there’s one token that offers a platform to use blockchain technology backed by exchange-traded securities. Another one offers a way to use any collateral that can be independently valued.

If you want a decentralized Internet, there’s a platform for that. If you want to conduct a political poll, there’s a token for that. There are new coins and tokens being offered to provide a medium of exchange for just about any goods and services imaginable.

They’re just getting started and the regulators are plotting. Currently, they can’t control it or contain it, yet they desperately want to tax it.

Mark my words: They will do everything in their power to replace it.

The financial elite who wield true power don’t want to stop it. They want it to grow because they want to capitalize on it. This is exactly what they have been looking for. It appears to be a game-changer now, but it will be the tool they use to finally break the chains of financial and political sovereignty.

Forget climate change. That charade will finally be abandoned. The true global unifier has always been the exchange of currency for goods and services. With the digital craze catching on, they will finally be able to eliminate paper money, converting every financial transaction to ones and zeros. They’ve been lobbying for it for years.

In a cashless society, the ones who control the flow of digits control the world. Every transaction will be traceable. No more mattress money. No more cash-only deals. Digital currency will provide complete financial transparency and total control.

It’s coming. The blockchain (cryptography) innovators are playing right into their hands.  Just read the IMF Staff Discussion Notes regarding Fintech and Financial Services.

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