BITCOINS, THE CRASH & NEW PARADIGMS

This is my third post on Bitcoins. It is a discussion of future concepts & events in regards to digitized electronic money flow. Besides an economic crash, a number of new concepts are facing humanity as technological abilities change. William Van Duyn’s advice for now is to put your limited money in silver or gold which hold their value, rather than lose it in the crash by investing in Bitcoins which have volatile value.

RECENT ELITE BITCOIN STATEMENTS. The Illum.’s Fed chairwoman Janet Yellen told a Senate Banking Committee that the Fed does not have the authority to regulate Bitcoins. At another mtg., the Fed. Advisory Council (FAC), a high level council that advises the Federal Reserve Governors, discussed Bitcoins. The topic of discussion was whether Bitcoins (invented by the Illum.) posed a threat to the traditional banking system & financial stability. They concluded it is a positive development, which could empower a new wave of commerce innovation…by opening new markets to merchants, driving capital flows to the developing world, & increasing global economic consumption. Their mtg. min. stated, “Bitcoin does not present a threat to economic activity by disrupting traditional channels of commerce; rather, it could serve as a boon.” However, they were concerned about the “extreme price volatility”; which is exactly why it is a poor place to place one’s assets to protect them from the crash. The FAC did feel that some regulation would be a win-win for all: “Bitcoin advocates may argue that increased regulation minimizes one of its greatest advantages, namely decentralization. Recent events [illicit use & the need for consumer protection] suggest that some flexibility should be sacrificed to address obvious problems.” They suggested regulating Bitcoin exchanges & that Bitcoin wallet providers could benefit from rules on how Bitcoins get stored.

COMPUTERIZED CLOUDS & NEW PARADIGMS. What is a cloud?? In the 1960’s the concept of computerized Clouds was being discussed. For instance, John McCarthy said “computation may someday be organized as a public utility.” Douglas Parkhill’s book “The Challenge of the Computer Utility” (1966) managed to cover most of the today’s aspects of cloud computing: elastic provision, provided as a utility, online, with the illusion of infinite supply. Even before his book the concept had been thought about… Herb Grosch (the author of Grosch’s law) postulated that the entire world would operate on dumb terminals powered by about 15 large data centers. Electronic funds are currently in the process of being decentralized by monetized clouds. Cloud computing uses shared resources to achieve a coherence & to economize on real computing resources, similar to a utility (like the electricity grid) over a network. At the foundation of cloud computing is the broader concept of converged infrastructure and shared services. The user now accesses the cloud-based apps thru web browsers, mobile apps, or a thin client. The client’s data will not be stored on his cell phone but actually with the cloud (a server or servers at a remote location). 2 examples are Amazon Web Services & Google App engine, which let users place & manage software “in the cloud”. The evolving Cloud is like a tree constantly branching more & more fine twigs, and M2M (Machine to Machine) dialog will have to evolve with this. What this means in more simple bottom-line terms is that everything may become monetized, so that cash is totally eliminated. No matter where you go, you will have a dumb “transmitter” that according to tags & bandwidths will allow you to reach the cloud & make your electronic transaction. If you go to a garage sale, you would not be using cash. The informal economy (uncontrolled economy) would be a thing of the past. Cash would be a thing of the past. Barter will probably still survive.

FLOW OF FUNDS. The speed of the flow of funds will be enhanced by the monetized cloud, and the older banking structures are going to evolve in totally new ways. The older slower methods are going to be outdated. Bitcoin wallet provider Xapo says it will release its Bitcoin debit card at the end of this month. Independent network rails such as Star, Pulse or MAC would allow merchants to accept debit transactions even if they are not affiliated with a particular bank. Xapo has accepted pre-orders for its debit cards, which they have limited to one card per wallet account.

4,500 MIT UNDERGRADS GET BITCOINS. Alumni and the Bitcoin community have donated $1/2 million so that each of the graduating MIT undergrads will receive $100 in Bitcoins in September. MIT already has a Bitcoin Club, so students already have been using the Bitcoins.

FALSE HOPES. The “wunderkind” Marc Lowell, who is the co-fdr/owner of Netscape has claimed that he will bring currency values back to the people & that this will be better than gold. William Van Duyn says this claim is not going to happen. He further warns that many companies are making big promises which will not pan out. These promises will turn out to be scams in the long run. While the Illuminati has invested in Buttercoin, Lending Club, Standard Treasury, Secure safe, BrainsToVenture, Sprint Corporation Sandbox Network, Google Inc, INVIA, Dropbox, Hypermedia, Prezi, Vodafone, AT&T, Telecom, Spotify, Youtube, Facebook, Verizon Wireless, T-Mobile in 16 countries, Twitter and around 240 more… that does not mean that the promises these companies make are necessarily better than scams. The companies make their own decisions on what they promise. Illuminati investments in these kind of companies go through Central Way AG founded in Zug, Switz. in 1999. Bear in mind also, that the crash will take down many of the elites’ own institutions. The crash will be like rebooting your computer.

SUMMARY. This has been another look at Bitcoins explaining why they are a bad investment to survive the crash. This post has also looked at the growth of the cloud(s), and the restructuring of banking to deal with the fast liquidity of monetized data flow. It also developed the idea that the Cloud will provide a means to do away with the informal (uncontrolled) economy (such as garage sales using cash), because data flow can be monetized & universal transmitters distributed. Barter will still survive.