Do you remember the times when people laughed at you when invested in 2013 and 2017 into Bitcoin? It crashed both times and the bells of death have been called. In one way those times have been better than today, yes of course the BTC at $51,000 is the best thing you ever could reach and for sure the price will go far above this, like from 20,000 to 51,000.
On the other hand, there is more governance in the cryptocurrency space. Big institutional investor jumping on the train either buying large portion of Bitcoins to influence the market, selling them to crash the price and rebuy to get much higher than $65,000. Yes that’s the next mark. Through this there is privacy gone in a big style.
We have seen DeFi markets and Quadro looping prices up and down. Today Uniswap Token, from one of the ETH founder skyrockets to $32 and passed Litecoin and other in market cap behind. This is waving concerns. Why? Because this is investor driven from regulated markets and of course … this is the old world trying to take over the new one.
Do we agree with that? Surely not. Listening to Bitcoin Café at Clubhouse (you know folks the trending social media platform where you only can talk audio directly, no text, no picture, only online in time, no recordings etc.) there is a strong movement back into privacy. Even Elon Musk is catching this train. Privacy is something you have to decide. Sending your Bitcoins via Lightning and you are untraceable. Lightning users knows about the anonymity in this field. Another thing trading private keys is also anonymous. But both technologies are not mass markets and reach only users of this which are experienced.
So what is in this year? Taproot and Schnoor signatures are both technologies for encryption methods which could transfer more transactions on one signature instead of having each transaction with one signature. This allows you to send multiple funds from different wallets you own in only one transcation. Best of all you can’t see the transactions combined to the first one. So you do not see how much value the transaction has and you can’t see where the attached coins are send.
In times where KYC/AML makes it impossible to respect privacy and this is the lock to the new world keeping the poorest out. Yes, we have spoken about Libra from Facebook. This seriously made governments and more over central banks afraid losing their customers to DLT and Blockchain technology because it is more secure and cheaper and replaces fiat and central banks in one. It was the trial having a security, a cryptocurrency, a stablecoin and a central bank digital currency in one project. Moreover it was the perfect tracking tool of money and the perfection of centralization of money cause the wallets check where the funds coming from and keep AML/KYC inside allowing a transaction before it has been send. The overspill out of the token business was the fractional banking and therefor Libra was the first coin having accepted (Bitcoin also has but it is denied, whether better knowledge) what they call “Intrinsic Value”
Intrinsic value is a measure of what an asset is worth. This measure is arrived at by means of an objective calculation or complex financial model, rather than using the currently trading market price of that asset. Libra was the perfect example where Governments can jump on board. With a work around regulation, it would have become the global digital and cryptocurrency asset obtaining payment functionality. Libra would have been tangible and non-tangible at the same time and would have define how this could have been addressed by governments creating a smart contract of regulation added to this token.
I am happy that Libra was not understand by governments and always Central Banks fight against, only reason, losing their jobs. Sooner or later they will no matter what they say.
Bitcoin gaining privacy is the most effective way to push Bitcoin to the moon, stable investors behaves (at the moment they are afraid about this comfort zone, but will likely see it would become a better way to manage their funds protected against competition and industry espionage). Yes, this needs maybe a lot of education but in the end of the day everything is connected to something. And everything is tracible. Internet of Things is not the last word but the entrance in total control. And we are going this way because revenues in billions of Dollar are likely what the cheese in a trap is for a mouse. Millions are going into system which provides the perfect spy and tracking tool. Blockchain, AI and IoT become a central controlled big brother system and there is no escape. Hugh benefits of good and gentle opportunities for fighting.
Do we support the George Orwell 1984 nightmare? Do we turn back the times to the legendary Apple spot where a personal computer has been smashed into the screen of the black and white people controlled by supercomputer? Do we create our own control system which has more power than the NSA? Bitcoin and that’s the talks about has to become the emergency exit. A society which is open for everyone and does not belong to fiat anymore. Yes of course institutional hold a lot of Bitcoins by buying the markets dry. But if people start to invest in Bitcoin as long it is possible for them to get Bitcoins even if it is $50 this will prevent that markets hold all Bitcoins. On the other hand there are 10 Million Bitcoins not accessible. If these few guys move them into the market, we can crash a total sale of. Keep in mind, privacy protects you in front of dictatorship. And the acting of your government during the pandemic shows if they democrats or dictators.
Written by : Prof. (Dr.) h. c. Joerg Molt