That day, I was discussing cryptocurrencies with an acquaintance of us at a local Starbucks, and he told me he was working with two entrepreneurs who were previously academic experts in IT security. Of course, for cryptocurrencies, it’s all about the secure transmission of data, and the confidence in that coin’s intrinsic value and zero, or Q-bits. Perhaps, I might look at their business plan, although these cryptocurrencies encountered some hurdles on the road to the future, I am sure they will be the future base – this is how the world looks like.
Does this mean that we will have a distribution currency such as energy distributed on a smart grid, or distribution information such as the Internet? Well, humans usually do what works, and there’s both good and bad with a centralized and distributive iteration strategy.
Now then, what is the last question you ask? Well there are two articles I read less than an hour after that meeting as I was browsing through the information I had previously saved to write this post for later; Marginally beneficial – Bitcoin may fail itself as a currency, but the underlying technology is starting to suggest valuable new applications, ”by Paul Ford (February 18, 2014) and states that this article was written just days before Bitcoin was stolen from one of the major exchanges.
The other article was written by Naette Byrnes the day after these results were released in the news on February 25, 2014, “Bitcoin on the Hot Seat – one of the major Bitcoin trading platforms is closing, raising questions about cryptocurrency.” Are you surprised No, me too.
The second article went on to say; Tokyo-based Mt.Gox, which was once one of the largest cryptocurrency exchanges, shut down Tuesday amid rumors that millions may have been stolen from the company and mounting concerns about the long-term prospects for the unregulated digital currency. The stock exchanges are to distance themselves from Mount Gox and confirm that they are still open for business. The value of the currency itself fell sharply to just over $ 500 by mid-afternoon. It hit an all-time high of $ 1,100 in November. “
What do you say about it? Ouch. Does this prove that the naysayers who call it a Ponzi scheme were right? Do they get the last laugh, or is this just an evolutionary anticipated process of turmoil in which all kinks are resolved? Well, keep in mind this thought experiment that I had.
Let’s say there was an involvement in it, let’s say someone hacked the system or stole the digital currency. At the moment, the digital currency remains under the radar because it is not recognized even with all the new regulations that banks are imposing on banks, etc. How can digital currency have value? It’s hard to say, how a fantastically printed piece of paper with a $ 20 mark could be worth anything, it isn’t, but it’s worth what it stands for if we all agree and trust the coin. What’s the difference, it’s a matter of trust, isn’t it?
Well, let’s say regulators, the FBI, or another branch of government step in and file charges – if they file criminal charges that someone defrauded another, how much fraud is involved? If the government Ministry of Justice and Enforcement puts a dollar number for it, they inadvertently agree that the digital currency is real, has value, and therefore recognized. If they don’t get involved, any fraud that may or may not be taking place takes the whole concept back, and the media will continue to diminish the trust of all digital currencies or cryptocurrencies.
So, it is difficult for government, regulatory agencies, and enforcement personnel, and they cannot look the other way or deny it anymore. Is it time for the regulations. Well, I personally hate organizing, but that’s not how it usually starts. Once the concept is structured credibility, but its digital currency concept could also undermine the entire One World Currency strategy or even the Petro-Dollar model, and there could be hell to pay for that as well. Can the global economy handle this level of turmoil? Stay tuned, I think we’ll see.
In the meantime, what happens next will either bring about or break this new change in how we view monetary value, wealth and online transactions and how the real world will mingle with the hazy reality in the future. I just don’t see a lot of people thinking here, but everyone should, one slip and we could all be in a world of harm – all of humanity. Please look and think about all of this.