There
were some worrying signs concerning Bitcoin value lately. The problem
is not that Bitcoin reached record levels at an exceptionally high
price. The problem is that the first significant fluctuations have
been observed with high ups and downs.
Recently,
the former Greek Minister of Finance, Yanis Varoufakis, described
Bitcoin as the "perfect bubble". From Wired:
When I
first met Yanis Varoufakis in the summer of 2014, he was a highly
respected but relatively obscure economist. Back then, the price of
one bitcoin fluctuated around $440. Fast-forward three years and his
career has followed a similar trajectory to bitcoin’s valuation.
Both have experienced a meteoric rise in popularity, characterised by
high-drama and volatility. Varoufakis would be thrust into the
limelight as Greece’s finance minister; battling the austerity
programme put forward by the Troika and today pursues the lofty
ambition of trying to reform Europe. Reaching similar heights, just
two weeks ago the price of one bitcoin broke $20,000 for the first
time.
Varoufakis
may have been one of the very first senior political leaders to
explore the use of blockchain-based payments for a national economy.
At the height of Greece’s financial crisis, he developed a plan for
creating a peer-to-peer parallel payments system, based on the
blockchain. Yet he wants to make one point very clear: “I was
never impressed by bitcoin itself; but from the beginning I was
saying that blockchain is a remarkable solution to problems that we
have not even imagined yet.”
As
bitcoin’s price continues to fluctuate, it has come under a steady
barrage of criticism. Varoufakis is no less damning of the
cryptocurrency but on very different grounds.
[...]
Citing
the 17th Century Dutch financial bubble in tulip bulbs, Varoufakis
sees bitcoin’s current valuation as, “the perfect tulip
bubble.” His explanation is simple. “Just take a look at
two graphs. Graph one is a time-series of the dollar price of
bitcoin, which has been growing exponentially. Graph two is the
number of transactions and the quantity of goods and services that
are sold and purchased by bitcoins.” The juxtaposition between
these two graphs, suggests that the price of bitcoin is grossly
inflated relative to its actual use. This leaves Varoufakis to
conclude that, “without a shadow of a doubt, this valuation is
the perfect bubble.”
To our
humble opinion, Varoufakis is only half-right.
Because
the problem is not just that the Bitcoin market is dangerously
resembling the functioning of the casino capitalism, as Varoufakis
describes. That's how financial capitalism works for more than forty
years now, based on the dollar as the global reserve currency. A
system created by the neoilberal doctrine and gave us big financial
crises, instability, inequality.
The
biggest problem is that, since one can buy Bitcoins with classic
currencies, the Bitcoin market is automatically connected to that
system. Which means that, sooner or later it will be 'contaminated'
by attracting, for example, all kinds of speculators coming from the
'dark side' of the dollar-dominated financial capitalism.
Which
means that, although Bitcoin is a decentralized CryptoCurrency, the
Western banking cabal knows how to destroy it: simply by
'contaminating' it with all the speculative factors that are
necessary to create a big bubble that will burst (although not that
easily in the case of CryptoCurrencies).
As
has been described,
JPMorgan CEO Jamie Dimon's recent statement about Bitcoin could be
considered the official war declaration on the digital currency by
the global financial mafia. The declaration of war could
be related to a recent
statement
made by the Head of the Russian Direct Investment Fund (RDIF), Kirill
Dmitriev, that the BRICS are considering to create their own
CryptoCurrency
for the purposes of global commerce.
So,
with an alternative economic bloc based on a CryptoCurrency issued by
BRICS, Bitcoin and other CryptoCurrencies will find a much more solid
ground to be developed and survive. Because this huge bloc will be
backed by a fast-growing market functioning with real goods,
investments and services, not big oil interests, wars, bubbles and
speculative transactions that dominate
in the Western
financial system today.
So,
this is actually a battle with time. The Western banking cabal will
seek to destroy Bitcoin before it finds a safety net in a system
flooded with decentralized CryptoCurrencies and other
CryptoCurrencies issued by a major rival bloc. Bitcoin fanatics
should not pray just for a CryptoCurrency issued by the BRICS. They
should pray for this prospect to become reality as soon as possible.
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