Being paleo, Push tx bitcoin news’m no Bitcoin buddy. But you can’t ignore this thing.
There’s a growing mob of people convinced the future of money will not be like the past. No central banks, No government controls. No cash tied to political decisions or interference. As a result Bitcoin, and other rival cryptocurrencies, have spawned a Wild West of finance.
Compared to this, real estate in Toronto or Vancouver is a giant, boring, brain-dead GIC. Despite this, the number of supporters is ramping up daily. Surprisingly, now the doomers have signed on. Some people say Bitcoin is sucking off a lot of support from the traditional hedge-against-paper-money, which is gold.
Of course, why someone who thinks the world might blow up would put all their faith in money that only exists if you have a good Internet connection and a charged-up phone is curious. Our gossamer grid might be the first piece of infrastructure to fail. But the appeal of digital money to those who trust no elected person, national government, central banker or multinational, globalist corporation is obvious. Bitcoins are hard to mine, unlike the way the US government prints trillions of dollars, for example, or the Fed simply balloons its balance sheet. Bitcoin isn’t actually money you can possess and hoard. Instead your pile is kept in a virtual wallet forming part of an online payments network which is completely decentralized. At least that was the genesis.
Now speculators, traders and institutions are piling on, with the smell of quick profits in their nostrils. Next month, for example, Bitcoin futures will start trading on the world’s biggest exchange. There are now bitcoins backed by gold. Could it be long before we see one tied to dollars? Will digital money ultimately be co-opted by global financial institutions who themselves are looking for relief from capricious national governments and paternalistic central banks? With free trade having broken barriers everywhere, a single protectionist leader like Trump has the potential to wreak havoc. So, yes, Bitcoin has a future.
And investing in it poses extreme risk. As a paleo, bitcoins are not in my portfolio. But this week the Canada Pension Plan Investment Board revealed it has a staff of 100 people watching, analyzing and possibly preparing to jump in. Your CPP dollars, out there, braless, untamed, astride blistering neurons with survivalists and nomads.
Or the web version of Bre-X? How can one tell, especially someone who isn’t the most techno-savvy person on the planet? I think the whole thing is a scam but our pensions won’t go up in smoke over a point or two in something that appears to be game changing. Just think of it as insurance and save your scotch for the next election. Every ponzi scheme looks like it has value only because people believe in it. It doesn’t earn anything and you can’t making anything with it like you could wirh gold. It’s backed by nothing and can vanish over night.