And so I thought, well... Large banks and investing firms have recognized the sentiment among the population and are about to turn it into a money making machine much like everything else.
The key word there, IMO, is 'sentiment'.
I finally got around to learning how blockchains and cryptos work. I was both fascinated and horrified.
The concept of a blockchain is so ridiculously simple that I can program a basic one in 5 minutes. It's the application
of that blockchain idea that is rather interesting.
Of course, there are also some rather massive drawbacks. Imagine a world where everyone buys and sells using Bitcoin. The blockchain - which 'everyone has a copy of' would become enormous. The mining process, which is used to verify the authenticity of new blocks on the chain - would balloon from 76 terawatt-hours per year to many, many times that much. That's 76,000 nuclear reactors running at max power for 1 hour. That's a LOT of power, even spread out over a year.
And Bitcoin is finite. Historically, the PTB like creating money out of thin air. Are they really going to be happy with a very finite supply of Bitcoin?
Practically, it's not very feasible given human nature, the nature of the PTB, and human history in general.
I mentioned 'sentiment'. If you'd like to know the kind of sentiment that some people have surrounding Bitcoin and other cryptos, watch The Max Keiser Report. He'll regale you with tales of a New Capitalism based on Love and Peace (not war and suffering) that will even benefit the BIRDS because Bitcoin will reduce our global carbon footprint (even tho at the moment, only 30% of the above 76 TWh is from renewables). Occasionally, he'll run off the rails into talk of 'GloboCon' or a Global Consciousness Revolution. So yeah, buy in, people!!
There are other cryptos, and many of them are interesting. The potential applications are technically fascinating, and COULD - if applied the right way - lead to nifty new things. Then again, when was the last time that new tech was NOT used for more control? Still, we end up with useful tools, methods of communication, etc. even though Google is spying on us all the time. So I don't think it would be all
But, as it stands, Bitcoin and other cryptos are not
100% distributed, they are not
green, and as they are
, they will probably not lead to Heaven on Earth.
Naturally, there are many, many more details to consider. There are also many more questions they raise, as well as many more questions we should be asking ourselves based on our rather broad historical perspective and our current understanding of social, political, cultural, and economic factors in play.
Given all the announcements coming this year from Mastercard, Visa, greater acceptance and trade involving cryptos, and government-backed cryptos like the e-yuan, I'm guessing that crypto values will skyrocket - very much like the dotcom bubble. I don't think that the inherent nature of cryptos will prevent massive wealth transfer - again - in a sort of 'Reverse-Gamestop' scenario. When the Big Boys get in on the action, watch out.
At the same time, it's probably a good idea to recall that other nations (BRICS) are gearing up for their own 'new economy' that will most likely be backed by gold in some way - if their massive stockpiling of the stuff is any indication. No doubt many twists and turns will follow... So who knows!
Finally, one should consider the 'insanity' that currently prevails in the above-mentioned social, political, and cultural areas. I'm pretty sure the economic realm is no exception. Plus, in the USA, you have a situation where apparently the will of the masses was ignored and Biden was installed. IOW, there is a LOT going on, and Bitcoin is only a tiny part of all that.
The recent NFT (non-fungible token) craze is wonderful evidence of the complete lunacy that has gripped people's minds when it comes to cryptos. Of course, chaos also
means new possibilities - but they must be considered with a large dose of caution.
So, I think we can
ask some questions at the next session, but the questions should be carefully thought out.