Cryptocurrencies has been on a wild ride of late ... up and down by 20-30% in one day! And China is trying to use this new monetary abstraction to push its yuan to become the premier fiat currency. However, the are numerous problems with cryptocurrencies, Bitcoin in particular:
- As Elon Musk has pointed out, this Bitcoin “mining” uses enormous amounts of electricity.
- Other cryptocurrencies have no limits on the total amounts created ... meaning they are open for that old bunko scam ... watering.
- Cryptocurrencies use block-chain technology which means they are supposedly unhackable and perfect candidates for ransom and blackmail payments which (likely) cannot be traced.
- Cryptocurrencies, primarily because of their huge volatility, are a poor store of value and carry a very large transaction fees ... often in excess of 10%.
- And as I have previously indicated, non-government cryptocurrencies hog-tie our Treasury and Fed’s ability to control interest rates, money supply, value of the dollar, trade balances ... and even the status of our dollar as the world’s basis of trade.
Bottom line: I believe that the U.S. government will soon, like China, clamp down on cryptocurrencies by regulating them. ... or create its own (with no transaction fee) ... in either case maybe sealing the doom of these alternative cryptos.
STAND UP FOR THE DOLLAR!
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