Digital Currencies - can they work (much longer)!

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Let’s think about all the digital currencies now in vogue within all our markets. We have some 800+ cryptocurrencies which are all digital. We have some 150+ official governmental currencies which are now MOSTLY digital (some 95% of all money transactions are done digitally). Today’s Wall Street Journal had an article entitled “Why Bitcoin Is Booming”. This article implies that Bitcoin can/will succeed as this currency is non-political and does not rely on centralized law. The authors of the article were Mr. John O. McGinnis and Kyle W. Roche. But what are these author’s missing in their understanding?

 

First of all, Bitcoin and all the other 800+  cryptocurrencies are really inner (metaphysical) currencies. The Bitcoin image is virtual and it derives (initially) from one’s consciousness (also called one’s ‘mind’). All these cryptocurrencies are inner (metaphysical) units and the image I witness within my computer screen is virtual/imaginary. The unit has no outer existence (as a paper note or a silver coin). I can not exchange the unit from my hand to yours. I transfer this unit within my inner mind (consciousness) and accept its legitimacy as valid because I can use math and numbers to create a ‘value’ for this unit (as of today).

 

But would this metaphysical/virtual currency have any validity as a stand alone currency? Could we eliminate the official fiat dollar (for example) and still consider this currency valid for international trade? What gives this Bitcoin image its ‘value’ in the marketplace now? I can transfer the unit from person to person, but what happens when I desire to ‘spend’ this unit for goods/services? Don’t I need to convert the unit (Bitcoin) to dollars prior to spending? So what good is Bitcoin as a replacement currency for one of our official currencies (or all of them)? Where would this virtual image currency get its ‘value’?

 

Let’s assume that we eliminate ALL official governmental currencies via a reset. Now let’s implement Bitcoin (or an equivalent) as the new currency. Could this virtual image within the computer screen work as a unit of ‘value’ for trade? Who (which counterparties) would desire a ‘virtual’ image in the computer screen as a unit of ‘value’ for oil, wheat, consumer products, or automobiles? How could it be ‘valued’ given that all official currencies are eliminated/abolished (say via a reset)? I don’t think anyone with economic common sense would desire this virtual image as an exchange for real production (autos, steel, oil, grains, etc.). Think on this!

 

Now let’s briefly think on the issue of our official fiat digital currencies ($, euro, pound, krona, yen, etc.). These currencies are also digital images (virtual) within our computer screens (for the most part). Some 95% of all money transactions are now done digitally and via computers. These virtual units get created by a decision (a human being with consciousness). The $ (for example) gets typed into the computer screen and then is declared official legal tender. There is no ‘tie’ of this unit ($) to anything material (like silver or gold). This makes this unit an image ($) in the computer screen created from consciousness. Think on this!

 

What is an image ($) in the computer screen created from consciousness? Does it have any material existence within our real-time markets? Does it ‘exist’ as a unit of matter/energy? If not, what is it (in reality)? Would it not be a metaphysical unit of the mind? Would it not be a non-material unit? Would it not be a subjective unit? Does this type of money unit ($$$$$), mere numbers within the computer screen, have any ‘value’ or long-term sustainability as a price discovery mechanism? The unit enters our markets surreptitiously via a bankers stroke of the computer key. This makes it subjective and an ‘invented’ unit with no outer ‘value’. Think on this!

 

Today, we have a global electronic/digital currency system which consists of cryptocurrencies and official currencies. Both of these currency types are mere images within the computer screen (inner units of consciousness). Can inner units of consciousness (mere mental abstractions/virtual images) work longer term for trade and a store of value? What happens when our markets finally decline precipitously and meaningfully (a serious 20-30% correction)? Do not all these currencies disappear back into our consciousness? Value certainly disappears as asset prices decline…so what gives any of our digital currencies stability during a serious downturn?

 

I think we need to start thinking about a serious correction within all our bubble markets. This will happen at some point down the road. When this happens, what survives as a ‘store of value’? Can images of the mind (all our current digital currencies) survive/exist during this value collapse process? I don’t think so! All these metaphysical currencies (we could also say ‘spiritual’ currencies) will vanish and disappear during this major crash event within our electronic markets! Digital money is worthless after this next major crash event! Can anyone go into their inner consciousness/mind and fetch this assumed ‘store of value’?

 

What is now happening within all our markets is similar to the Tulip Bubble markets back in the 1600’s. Traders, investors, speculators are using mere mental abstractions/virtual images to pump up all our bubble markets with math/numbers. This is perceived as ‘making money’ for all these persons. But will these deceived persons understand what happened when our markets finally correct (significantly)…say 20-30% or more? My sense is that most investors and traders today are grossly deceived about the nature of reality. REALITY will prevail eventually! Isn’t it time to get REAL? I am:https://kingdomecon.wordpress.com.

 

Some additional images for your consideration:

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Cryptocurrencies are technically imaginary. We call them virtual. They do not have any outer existence. They are units of consciousness (inner)!

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Bitcoin is a virtual image (a unit of consciousness) which gets its assumed ‘value’ from bouncing off an official fiat currency like the Dollar ($)! It can not stand alone!

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Some additional cryptocurrencies which are getting pumped up in ‘dollar value’ at this moment! These will disappear back into our consciousness when demand vanishes!

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Most all official currencies are now digital (virtual) and derive from a banker’s consciousness (their inner mind)! Who understands ‘consciousness’?

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All digital currencies will eventually vanish and disappear during a major financial crash/correction! Why? Ask yourself: What are they (in reality)?

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This is what happens during a digital financial crash! The banks close, the gas stations close, the super markets close! The system implodes!

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When the Bubbles finally burst, then the games of bankster manipulations END! The Keynesian economic experiment would be OVER! All debt is cancelled!

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Bankers who have created (invented) all our imaginary credit/debt will cry that the game has ended! Their power wanes immediately!

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Traders will watch as their imaginary money vanishes and disappears (back into their inner consciousness…where it all started)!

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These well-known power brokers will sense their loss of self-esteem and ego powers as their casino will have ended!

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This billionaire will not lose everything as he has already purchased a hoard of physical gold as his insurance policy!

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Bitcoin investors will have lost all their value in an instant of time! How could this happen to me?

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The Donald’s hotels will decline in value to a fraction of what they are valued today!

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This lady of finance will rush for some solace from her contemporaries who have given her all their advice to follow!

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Theses investors over in China will wonder what happened as their leaders promised that China would grow indefinitely!

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These experts will talk on the internet and TV about why the crash of all history was unexpected and not their fault!

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This gold investor will smile as his ego is inflated after this coming historical crash of all history! But can gold return to our markets as money?

This author thinks that barter, private enterprise money, and debits/credits, will replace money. But does he understand this concept called ‘value’? His ideas are worth evaluating, however, to get a sense of where events are going!

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My ‘alternative’ to our money/economic problem is outlined within my blog: https://kingdomecon.wordpress.com!

Comments

Patrick Writes Added Jul 10, 2017 - 8:27pm
I'd argue that something has value if everyone agrees it has value. 
 
And an image on a computer screen exists on the hard drive of the source computer. It's in a file with contents, should you view them in a text editor, look like goobly gunk. But if you view it in a browser or image editing tool like your picture. 
Patrick Writes Added Jul 10, 2017 - 8:30pm
I'd argue a file on a hard drive is no different than a file in a filing cabinet. Destroy the filing cabinet or throw away or burn those records, and they'll cease to exist too. So long as it's there in the filing cabinet, it exists. 
Donald Swenson Added Jul 10, 2017 - 9:05pm
Your argument may not be valid, Patrick. The word 'exist' implies that it (the image) has substance (matter) which is independent of my consciousness (mind). Can you show, prove, document that a virtual 'image' within cyberspace has substance?
 
Most all of our currencies are now located in the 'cloud' (cyberspace). Can you demonstrate that the 'image' is an 'outer' thing which you can show me (as a unit of matter)? Matter/energy is usually what science views as 'existing'. 
 
What is cyberspace in your opinion, Patrick? All the text, images, numbers, which I look at now (within my computer screen) are supposedly located in cyberspace. What is it? Is cyberspace a 'thing' which exists? If not, then it would 'not' exist. 
 
I would argue that all our digital currencies can acquire 'value' in the mind of you, me, or any person. But this 'value' is an inner (metaphysical) value that I would not view as 'existing' (in observable reality). The $ value of Bitcoin, for example, is currently over $2000. But could it go to zero tomorrow? What do you think? D
Katharine Otto Added Jul 10, 2017 - 11:02pm
Donald,
I don't understand why people invest in bitcoins, especially since they have already been known to disappear without a trace overnight.  But people still invest in the stock market, too, despite numerous crashes and recessions.  People still gamble, knowing the house always wins.
 
I say that cyber-currency will never claim the whole market, simply because computers are still luxuries in many places, and people have to eat.  This is an issue only for people who have enough money to put in a bank, and many don't.  They live hand-to-mouth, but they will be the survivors if the crash comes.
 
I've come to believe cash flow is more desirable than hoarded wealth, and living within my means is the key to freedom. 
Donald Swenson Added Jul 10, 2017 - 11:06pm
Good advice, Katherine. What I have discovered at my venue is that most business people have little understanding about money. They make lots of digits but they have no idea where these digits derive from. They also don't desire to learn (most of them). I have been teaching on these issues for 40+ years and some people comprehend money but the vast masses have no clue. What is money, I ask? The answer is usually, that is a good question! D
Patrick Writes Added Jul 11, 2017 - 12:31am
@Donald - It's okay, we may disagree. But cyberspace literally means on a host computer's hard drive. But  if you're looking at an image on the Internet, your browser has downloaded it onto your computer. So it exists on your computer's hard drive as well.
 
I'd argue that exists. In the days before computers, a bank loan was just some digits on a piece of paper in a filing cabinet. But so long as the bank was functioning, that "loan" really existed. The bank employees knew how to interpret that record and knew that it meant that the loanee owed them money. 
 
In 1928, if someone took out a bank loan, once the person walked out the door with the money and let's say spent it immediately, did the loan still "exist"? It was just a bunch of numbers on a piece of paper at the bank. 
 
Would you say because the piece of paper takes up physical space, that the loan exists? But if the same data is stored on a hard drive, it no longer exists? 
Donald Swenson Added Jul 11, 2017 - 1:09am
Patrick: You said: But  if you're looking at an image on the Internet, your browser has downloaded it onto your computer. So it exists on your computer's hard drive as well.
 
Actually, Patrick, I no longer have a hard drive. My Chrome book laptop (which I write to you on at this moment) has all my text stored in the 'cloud' (cyberspace). The 'cloud' is typical of what I mean by cyberspace. Hard drives are being abandoned for the cyber 'cloud'. 
 
I would argue that information in cyberspace and the cyber cloud should not be viewed as 'existing'. Cyberspace, to me, is an extension of my consciousness (mind). I write to you at this moment and the text travels to you via photon frequencies. Photons carry my words directly from my consciousness to your consciousness. This is what happens with all our virtual currencies today. Even if some computers store my words, money, images on a hard drive; this does not mean that these words 'exist' physically. The hard drive certainly 'exists' but the words, images, numbers stored can be deleted, wiped clean, erased. Words, to me, do not 'exist' and money is similar (mere abstract numbers). Bitcoin is a virtual image and a number. It resides in my computer screen (cyberspace) and is stored either in the cyber cloud or a hard drive server. The server exists. I would not view Bitcoin as 'existing' like a paper dollar bill or a metal coin. Cyber currencies are 'virtual', 'imaginary', and 'metaphysical'. We can not access these cyber units stored in the cloud. That, to me, describes our money situation today. We live with metaphysical units of consciousness for our money. Do you agree or disagree. D
Donald Swenson Added Jul 11, 2017 - 1:13am
My article points out that I don't think these cyber currencies can work or last. First of all, they are units of my 'imagination'. They are virtual units. They get created from a banker's inner mind (his/her consciousness). This makes them subjective and valueless. Our bubble markets give people the illusion that money is real and physical, but (in reality) all is an illusion of the mind. Money is inner and metaphysical. D
Donald Swenson Added Jul 11, 2017 - 1:15am
When our markets crash, then you may recognize that all is an illusion. But as I write, you probably think that your money is safe and stable. I would challenge this perception. Silver coins and gold coins are safe and staple as they 'exist'. But cloud/cyber money is mostly an illusion of our mind's. D
Donald Swenson Added Jul 11, 2017 - 1:19am
Patrick says: Would you say because the piece of paper takes up physical space, that the loan exists? But if the same data is stored on a hard drive, it no longer exists? 
 
Yes, Patrick, a piece of paper 'exists' as it is composed of matter (substance). Data, however, is not matter/substance. Data is metaphysical. Storing data on a hard drive does not make the 'data' physical. Yes, the hard drive is physical...not the data, words, text. 
Doug Plumb Added Jul 11, 2017 - 7:57am
Its a trick to get us into digital money. They can take your money without due process electronically then its up to you to try and get it back.
 
They want digital money more than anything, including wars, organs and blood from children and underage prostitutes. It is the darling of the NWO.
George N Romey Added Jul 11, 2017 - 8:12am
The late 1990s Internet craze was the prime example of greed and stupidity trumping common sense and intelligence.  Digital currencies have become the new dot.com craze for the second half of this decade.  Will they all crash or will some be left standing?  No one really knows but like the dot.com hysteria most won't last and investors will lose trillions. 
The Burghal Hidage Added Jul 11, 2017 - 8:17am
Don - 
 
This is an interesting piece. A good friend of mine in the past year has got himself all hyped up on Bitcoin. He shared it with me and though I'd heard the term I was not really familiar with the concept. After doing some further research on my own I reached pretty much the same conclusion as you have.
 
It is not just in terms of currency that a majority of people are unaware how hollow and empty are the constructs of the world they perceive. In a society where personal worth and wealth are only superficial in nature it seems fitting that we trade in "currency" that is equally valueless.
 
I too foresee an eventual return to a barter economy, local "micro" currencies of some tangible asset, etc.  We live within a fabrication.
Dino Manalis Added Jul 11, 2017 - 8:25am
Digital currencies may work, but we need stronger economies based on genuine economic strength!
Dave Volek Added Jul 11, 2017 - 10:23am
Good article Don.
 
Donald Swenson Added Jul 11, 2017 - 1:42pm
Thanks for your comments. The history of money reveals that digital currencies can not work long-term. The digits get created out-of-nothing (surreptiously) by our banksters. Can this be sound monetary policy? Not in my universe. We need a reset. D
Patrick Writes Added Jul 11, 2017 - 3:24pm
The "cloud" just means some else's hard drive (often Google, amazon.com, or some other hosting company). The cloud is just like renting office space which comes furnished with filing cabinets that you put stuff into (or take stuff out of).  
 
By the way, chrome books do have hard drives that the operating system uses. YOU just can't store stuff on it. Your browser almost always has to download a pic before it presents it to you. It has to download a web page text as well. Thus, what it's presenting to you already exists locally on your "hard drive". The little pic of me on my comment here exists on your "hard drive" as does this WriterBeat web page with your article and these comments. 
Donald Swenson Added Jul 11, 2017 - 4:03pm
Patrick, the word exists is a problem for me (scientifically). Virtual info stored temporarily on a server does not exist within observable reality. It has no matter/substance. It is located within cyberspace and can be deleted. What is your definition of cyberspace? D
Donald Swenson Added Jul 11, 2017 - 4:08pm
The cloud,to me, is like my extended memory. It has no existence (scientifically). Where is it within observable reality? D
Donald Swenson Added Jul 11, 2017 - 4:11pm
Patrick, your little pic does not exist on my hard drive. It is virtual. What is your definition of Virtual? D
Donald Swenson Added Jul 11, 2017 - 5:04pm
Our problem, Patrick, is how we communicate reality. To me, the word 'exist' means that the word refers to an object of mass/matter. The Sun and the Moon 'exist'. A virtual image/photo of the Sun or Moon does not 'exist' in this same manner. Virtual images are made to 'appear' to exist but actually don't exist. Within science we describe reality which 'exists' and which has mass/matter. If a word does not denote an object with mass/matter, then this word derives from one's mind and it would be part of consciousness (but with no existence). Virtual reality is confusing as we see images and text and our minds convert this to that which 'exists'. But, in reality, any image or word within our internet communication environment should be viewed as a cyber unit or a unit of our extended consciousness. D
John G Added Jul 12, 2017 - 4:54am
Loony Toons.
Saint George Added Jul 16, 2017 - 4:07am
Loony Toons.
 
You certainly are.
 
We all agree on that.