Doug Casey on What Will Trigger Bitcoin’s Collapse

Doug Casey brings up a few things most people haven’t thought about concerning cryptocurrencies. From Casey at caseyresearch.com:

Justin’s note: Central bankers are losing sleep over bitcoin.

And they should be. It’s a direct threat to their monopoly on money.

Because of this, they’re trying everything they can to crush bitcoin.

They’re urging people not to buy it. They’re calling it a bubble. They’re even talking about launching their own rival digital currencies.

Regular readers know that I think these efforts will fail. But I couldn’t help but wonder what Doug Casey thinks of this. So, I called him up a few days ago to get his take…


Justin: Doug, governments around the world seem to be waging a war on bitcoin.

Do you see expect to see more of this in the years ahead?

Doug: Absolutely. You can plan your life around governments doing everything they can to discourage not only bitcoin, but all the other private cryptocurrencies as well.

It will be for pretty much the same reasons they hate gold, and other hard moneys. The State believes the issuance of currency is one of its major prerogatives, like making war and levying taxes. It’s critical to them not to have alternatives, competition, when it comes to money.

For one thing, almost every government in the world is running deficits—gigantic deficits in many cases. They’re financing those deficits by printing money. It’s national policy everywhere because they believe deficits “stimulate” the economy as a bonus.

Most of that newly created money is flowing into the stock, bond markets, and real estate markets. It’s making everybody feel much wealthier. Except for the bottom 50%—they’re getting poorer.

Government and central banks don’t want to give up that monopoly on money. Least of all the US, since our major export isn’t wheat or airplanes—it’s dollars. So, they’re going to do what they can to quash bitcoin and the others. For a myriad of reasons.

Justin: But will they succeed?

Doug: Well, they could certainly illegalize it. But would that eliminate it? About as well as their laws eliminated drugs or prostitution today. Or alcohol during the ‘20s. Fat chance. Although illegalization would certainly make cryptos inconvenient and risky.

But could they destroy cryptos? Who knows what kind of computing power the National Security Agency (NSA) has. They might be able to destroy any computer network or digital product at this point.

This is a huge argument against any kind of purely electronic currency—anything can happen in the ether.

To continue reading: Doug Casey on What Will Trigger Bitcoin’s Collapse

 

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One response to “Doug Casey on What Will Trigger Bitcoin’s Collapse

  1. “It will be for pretty much the same reasons they hate gold, and other hard moneys. ”

    Cryptocurrencies are not hard money. They are nothing more than Ponzi schemes.

    Like

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