Equedia Letter

Is Bitcoin the New Stimulus?27 min read

Comments (18)
  1. Andy Appelbaum says:

    All cryp[to currencies are going to crash sooner or later, They are no different than any other new technology

  2. Doug says:

    I am so happy to be in the final quarter of my time here on earth so that I hopefully be able to escape from most of all of the new technology. The concept of even beginning to understand crypto currencies escapes me. I neither want or need to engage in social media where no one minds their own business, bitcoin and soon computers in general as there is no privacy or freedom to do or say what one feels without risking condemnation if someone is offended and we all know you can’t please everyone nor should you try to. When surfing some shopping websites to view some products I might want , they bombard me with the products I researched on other websites I use. I am so sick of being tracked, hacked, and bombarded that i will soon be tossing out all of this useless electronic baggage and withdraw into a remaining life of total privacy and serenity. No wonder people are becoming so impatient , violent and drug induced. So much for being free in a free country.

  3. Garry Nichols says:

    Compare Bitcoin with any Ponzi scheme and you will not see any difference. Its a fraud like any Ponzi scheme albeit on a greater scale. Instead of supposedly buying into a non-existent investment you are buying into an algorythim. In other words you are buying nothing with real money. Just like a Ponzi. Unforseen market fluctuations that create non-confidence in investors eventually brings a Ponzi crashing down and investors bankrupt. If confidence in Bitcoin diminishes, investors will want to cash in quickly. Do you believe for a minute that there is enough real money at Bitcoin to cover the run? Its a brilliant Ponzi scheme and if it crashes in November as you predict it will make Bernie Madoff look like a piker!

    1. m says:

      repeating Jamie Dimon of JP Morgan calling bitcoin a ponzi scheme…. two days later JP Morgan buys 2000 Bitcoin. It’s NO ponzi scheme…

  4. bohdan vysochan says:

    jeez another potential nail in the coffin known as western democratic society……pardon me nail in the coffin for any human being who wants to control their own destiny……..yes the the u.s. economic noose is slowly being loosened…..and as a consequence the noose around my neck is slowly being tightened….the top 1% in the east or west will will survive……..chinas setting world trade in terms of their currency and the ability to convert to gold and these crypto currency experiments by nation states eliminates people like me……..from feeling I have planned for the future……thanks but no thanks…..the 1% will get it all.

    why do I feel that it is all a Ponzi scheme…….. and I do not know what to do to protect me and mine……yes I have gold, silver,collectables and supposed blue chip dividend paying stocks….FOR WHAT PURPOSE I agree with you garry a grand PONZI SCHEME it is……welcome to the future of unknowns

    and mr lo thank you for your arcticles…….love them all

  5. w. c. Harvey says:

    No! cryptos are not the new QE! The total market caps of all the online coins are no enough to stimulate anything.Nor are the central banks or govrnments facile enough to create something like a Bitcoin-but they will catch up using their powers of arrest and jail time threats they maybe able to assemble a golem like coin which will surely be shunned by smart coin users the world over.On the positive side blockchain coins can be used by nations-like the Greeks-to exit the German controled Eurodollar,but only if they put a positive nationalist spin on the purchase if such coins.Cryptos are here to stay with profound changes to be sure,but this is just like the beginings of the aviation industry.Millions will become ‘banked’ without having to leave their remote locations-we cannot even imagine all the changes that this new money will bring.

  6. Stephanie Wells says:

    As a non American with an American invorporsted company can my company purchase cryptic currency stocks? And can I cash in for US$?

    1. m says:

      you cash in your bitcoin for USD at a Bitcoin exchange FYI all th enew ICO market..to use the Blockchain technology requires a token/coin hence there are over 1200 coins/tokens. Think of them as blockchain apps. Bitcoin is Blockchain genesis..the 1st and most powerful and it’s power grows with every transaction. In 9 yrs Bitcoin/Blockchain has NEVER been hacked and NEVER been taken down.. there is no single point of failure. Bitcoin network is the biggest computer network that has ever existed.

  7. Peter Carlich says:

    Yes, I definitely agree with you, decentralized money is the way of the future….

    And also to invest in these technologies, just the question of which one…??

    Peter

  8. Peter Carlich says:

    Absolutely, that governments will move against private held cryptocurrency’s with there own block chains… The only question is which to invest in to profit from the massacre that will soon start…??

    Peter

  9. Peter Carlich says:

    Of course they will……

    Peter

  10. arthur says:

    I think that the Bitcoin founders are trying to get the most of their bitcoin and I would not be surprised that teh new gold bitcoin could be corrupted

  11. sebastien mathieu says:

    Thanks for this propaganda…. and long live BTC/ETH!!!

  12. sebastien mathieu says:

    BTW (it’s not a token, it means by the way:-) i your ETH hack means the DAO hack in 2016, ETH was never hack but the DAO site was, not citing you’re source/event is completly dishonest., for a supposedly serious article. All traditional finance people have been saying the same time since 2013 about BTC (read the bitcoin obituaries) so c’mon man. Finally, citing the “realities of bitcoin” just as a title for a paragraphe on ICO’S (Witch every should know they are like penny stock’s: promising ideas, 90% crap) is really showing that you are on the wall street side of the gang….

    They are many more things, but i’ll stop there because nobody will read this anyway…..

    A more objective and informative article would have been welcomed.

    Anyway like it or not welcome to the revolution:-)

  13. randy a says:

    Somebody as cynical as I am. If they didnt invent it they can control it by buying up all the bitcoins in existence. Price is no object when you have an infinite ability to create money.

  14. Don Herres says:

    Dear Ivan Lo,

    I was given this newsletter as FYI, but I feel that I should respond and in detail as this demands a solid examination.

    First of all, I am glad that you have done some homework about Bitcoin and Cryptocurrencies as knowledge is key to understanding. However, when one does their homework, they must take it all the way. Remember the addage ‘a little knowledge is a dangerous thing’, most especially if the study stops halfway and speculation is used to fill in the ‘gaps’, and this is apparently what has happened here. Let me clarify by addressing key points from your newsletter…

    ——-
    >>>First and foremost, Blockchain is not Bitcoin and Bitcoin is not Blockchain<<>>But when you start adding these types of solutions, the costs associated with transacting in cryptocurrencies also goes up because these networks take a small fee for doing so. That’s why over the past year, transaction costs for Bitcoin have gone up.<<>>So the “developers,” whoever they are, have already looked at implementing solutions to this bottleneck.<<>>Once the Bitcoin community and its developers figure it out, then you can pull them out and put them back on the chain.<>>Miners Could Soon Be Out of Business<<>>And just like the dotcom bubble, it will likely end tragically for most.<<>>Right now, the creator of Bitcoin has been dubbed Satoshi Nakamoto<<>>Powers that be allow it to become so big?<<>>How does a digital currency created by no one grow to achieve a $126 billion in liquid value?<<>>I’ll be honest, I never believed crypto-digital currencies and ICO’s to be real. Because when you look at it from an honest perspective, it really is creating something out of thin air.<<>>So how can they stimulate the global economy without adding more to the already ballooned balance sheets?<<>>Bitcoin itself has already added over $120 billion in free money without affecting a single balance sheet.<<>>IMF to Create SDR Cryptocurrency?
    Could replace existing international currencies.

    Yes, I’ve been following all of that. SDR’s is your actual attempt by the system to reboot their failed fiat ponzi scheme. Not bitcoin. They are now in fear for that system with bitcoin on the doorstep threatening their new house of cards that they have worked on for decades. Hehe, not sorry for that kick in their teeth.


    >>>In other words, there could be a reason why governments around the world are letting cryptocurrencies run rampant:
    1. To temporarily infuse free money into the system “off-the-books”.
    2. To implement Cryptocurrencies on their own once the technology is proven and accepted (or once it fails and they step in to save the day).<<>>Despite the Bitcoin movement being touted as an unstoppable force, governments around the world can at any moment put a ban and implement severe penalties on anyone trading Bitcoin or other digital currencies.
    Why are they allowing these currencies to play out?<<>>Could the Fed, the IMF, or another major organization be the true creators of Bitcoin?<<>>When you consider that civilization have always had leadership, whether it’s government or other entities such as banks or secret rulers, the idea of these central banks and their intervention makes sense.<<<

    No, it doesn't make sense for the specific reasons laid out above, but additionally, we have not always had leaders. This will take some history reading and a much longer talk (more than happy to go into full detail but if I get into that, you're buying the beer) but we have not always had leaders. We are just taught we have because the system does not want you to realize that we simply do not need them, and now that bitcoin is solving the debt-based money problem, this dependency on leaders are the next problem to solve.
    ———–

    Hope all this helps to clarify, contact me anytime,
    Cheers,
    Don Herres

  15. Gfield says:

    I guess, the initial intention of crytocurrency is probably good. The first reason is they evade paying tax and fees to the so called “not so deservings”. The second reason is people in the loop transact unnoticed, anonymously. There is no secrete how many transactions are done without the knowledge of the governments or the public. The advance underground technologies are way beyond the ability to catch up by modern world known to the public. But the key focus here when it first started was probably: it was a focus group, small-specific group of people are included in the loop, not everyone. Therefore, every transaction can be monitored easily because they are related, with no secrete. It’s probably like a private bank minus the fees and tax, for a few friends and families. Operation based on trust and righteousness.

    The opening to the public created problems. The big data base and number of unselective inclusions created unforeseeable hurdles in data handling and monitoring. Re-categorization is probably necessary to make transaction and monitoring easier. Because there is no physical property to be owned, there is a risk……….. How long can the trust hold before problems occur or things change hands and problems occur, is an unknown. Top personnel are the lucky ones, regardlessly.

    Instead of chasing over things that way beyond catch up and causing the trusting public to probably fall prey at the end, why not refurbishing the tax and fees systems? The creation of cryptocurrencies aims to evade payment of tax and fees, or is it not?? Why are people so reluctant to pay? Imagine a farmer working his ass off from morning till evening. After he gains his harvest, one third or half of those have to be forced to be delivered to some one or a group of people who are there because they are rich and have more manpower to beat him up when he does not comply?? For good service rendered, people are willing to pay. But not by forced, without justifiable reason. Therefore, give people a reason not to evade paying is the best solution by far?? Cryptocurrencies offering to the public must be monitored because people’s hard earn money are there based on TRUST. Something that is intangible and delicate. Valuable to many, especially the underground world; but not by some….. When things are delivered as promised, it’s a win win situation that makes everyone happy. On the other hand, what could be done when things are not delivered?? Why are we encouraging a crowd change now?? And who or what is there to safeguard the functionality and sustainability of it?? A few questions to ponder, before we jump into the conclusion to have paper backed or cashless society based on TRUST……….

    1. Don Herres says:

      GField,

      You’re post must have gone through a few renditions of Google Translate, it is barely understandable. I’ll take a shot at a couple of points though.

      GF: The first reason is they evade paying tax and fees to the so called “not so deservings”.

      DH: Kind of like dollars. There are those that keep cash so as to avoid being tracked. Crypto was not designed to evade taxes, but it does allow one to keep full control over their money. Taxes should be voluntary. If a government uses taxes for the benefit of the people, then the people are more willing to give government taxes to ‘do the job.’ Government forces taxation on threat of kidnapping and theft of property and because of this, wastes vast amounts of what it collects. Government doesn’t care how much it wastes as it can just milk more from the people. If taxes were voluntary, government would HAVE to be far more responsible with what it gets. Crypto cannot be ‘confiscated’ like gold/silver/dollars because it cannot be physically found. This helps to make taxation more accountable, government has to make taxation ‘appealing.’ But as I said, it is similar to cash in this regard.

      GF: The second reason is people in the loop transact unnoticed, anonymously. There is no secrete how many transactions are done without the knowledge of the governments or the public.

      DH: Yup, kind of like dollars. So what has changed?

      GF: The creation of cryptocurrencies aims to evade payment of tax and fees, or is it not??

      DH: No, it aims to give people control over their money so it cannot be arbitrarily confiscated. Most of us work very hard for our money and we do not want a bank, a government, a police agency or a criminal to just take our money. Look at Asset Forfeiture for instance. Only a tiny proportion of the public are drug runners. Yet some states are financing up to 60% of their budgets using trumped up Asset Forfeiture legislation and raids, the vast majority of which are set upon innocent people, and with no recourse to recover their assets. If government didn’t act like mafia gangs, we wouldn’t need to go to the measures that cryptocurrencies give us to protect our hard earned money. But they do and we need to.

      GF: Why are people so reluctant to pay?

      DH: Taxes? Have you seen the obscene level of waste by government? Truth is, most do pay tax. But by giving individuals protection from arbitrary confiscation means government has to be more accountable.

      GF: Valuable to many, especially the underground world;

      DH: Criminal use of cryptocurrencies is actually minimal and minute. News stories tell you otherwise(without proof) but do the research. Criminals love dollars. Harder to track. Yet we are not berating dollars for their use by criminals. The biggest money laundering tool by criminals is VISA and MASTERCARD prepaid cards. Completely un-trackable, can be brought across boarders without being checked, pretty much as good as cash, etc, etc. It is the tool of choice by drug runners and the underground. Yet do we hear a SINGLE word about how they are being used to launder money? Absolutely not. Why not? Because VISA and MASTERCARD take a solid cut at the point of sale and they do not want their apple cart upset. Crypto is picked on because it is a threat to the banks, it takes away their reason to exist, that is why the banks attack crytpo.

      Additionally, bitcoin is not good for laundering as all transactions are registered on the blockchain and visible for ALL to see. What idiot criminal (though there are many) would post large transaction on the blockchain where it is instantly visible to authorities to focus on and investigating to attach the transactions to individuals? Better to use VISA/MC prepaid cards, nothing to connect.

      GF: And who or what is there to safeguard the functionality and sustainability of it??

      DH: The Users and the Miners. It is a trustless system(trust not required), run by mathematics with built in incentives to keep it going on in perpetuity. That is the brilliance of it. Watch this documentary to get a proper idea of how it works before disparaging it…

      https://www.youtube.com/watch?v=6pWblf8COH4&t=434s

      Fear comes from lack of understanding. Learn about bitcoin to understand how it works and why it is so brilliant and why it will free humanity from the enslaving bonds of the banks.

      Cheers,
      Don

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