I recently discussed cryptocurrencies with an acquaintance from our local Starbucks, and he informed me that he was working with several entrepreneurs who were previously academic computer security experts. Of course, cryptocurrencies are a safe transfer of data and confidence in the true value of these units and zeros, or bits. Maybe I could take a look at their business plan, although these digital currencies have faced some bumps on the way to the future, I’m sure it will be the standard of the future – that’s what it gives the world.
Does this mean that we have a distribution currency, such as distribution energy in an intelligent network, or distribution information such as the Internet? Well, people usually do what works, and there are both good and bad in centralization and distribution backup strategies.
What are you asking the last thing? Well, there are two articles that I haven’t read more than an hour after this meeting since I was browsing through the information I had previously written down to write on the subject later; Slightly useful – Bitcoin itself may fail as a currency, but the technology behind it is beginning to offer new valuable uses,” wrote Paul Ford (February 18, 2014) and note that this article was published a few days before the bitcoin theft. with one of their best exchanges.
Another article was written by Naett Byrnes the day after the results hit the headlines on February 25, 2014: “Bitcoin is in hot condition – the main bitcoin exchange is closed, raising questions about cyber changes.” Are you surprised? No, so am I.
The second article said; Tokyo’s Mt. Gox, once one of the world’s largest bitcoin exchanges, retired on Tuesday amid rumors that millions of dollars had been stolen from the company and growing concerns about the long-term prospects of unregulated digital currency trading. Gox Mountains, saying they have always been open for business. By mid-afternoon, the value of the currency itself had fallen to just over $500. In November, it hit a record high of $1,100.
What do you say? Does this prove that the sceptics who called it the Ponzi scheme were right? Is it the last word behind them, or is it just an expected evolutionary process of destruction with all the worn folds? Let’s take a look at my thought experiment.
Let’s say a handkerchief was used, let’s say someone hacked into the system or stole digital currency. Right now, the digital currency goes unnoticed because it is not recognized even with all the new Too Big To Fail rules for banks, etc. It’s hard to say how a piece of paper inventively printed with a $20 print can cost anything, it’s not, but it’s worth what it represents if we all agree and are confident in the currency. What difference does it make to trust?
Okay, let’s say regulators, the FBI or some other government agency intervene and file a complaint — if they bring criminal charges that someone has tricked someone else, how many scams have been involved? If state law enforcement agencies and the Department of Justice add dollars to this, they accidentally agree that the digital currency is real and valuable, and then they recognize it. If they do not participate, any fraud that may or may not have occurred will return the whole concept to its place, and the media will continue to reduce confidence in any digital or cryptocurrency.
So it’s a trap for the government, regulators and law enforcement, and they can no longer turn away or deny this trend. Is it time to regulate? Personally, I hate regulation, but usually it doesn’t start. After regulation, this concept gains credibility, but its concept of digital currency can also undermine the entire strategy of the single world currency or even the paradigm of the US dollar (petrodollar), and beyond that damn. Will the world economy be able to cope with such instability? Stay tuned, I think we’ll see.
Meanwhile, what happens next will make or support this new shift in our perception of monetary value, wealth, online transactions and how the real world merges with our future fuzzy reality.