Banks vs Crypto. Steem, asset or currency.

in #steemit5 years ago (edited)

The Hive

Howdy folks'.

In a previous post or two or three. I have mentioned some things I see. Many talk about Crypto and the removal of power and control over our daily lives it can take from the banking system. What do you think the possibilities of this happening?

A decentralised system of financial transactions will come about and show visibility. Of that I have no doubt. Along with this will be the ability for a second encryption to be placed over certain transactions. Needed for national security will be the reason given for the encryption. The transparency we think we might gain will not be there.

The current financial systems will gain control over the Crypto market. Which they are already doing while the rest hunger after another Crypto token. Chasing the personal wealth and forgetting the global benefits which could have been gained.

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The depth of detail involved in creating an alternative method of transactions than the FIAT one currently in place is not that hard to achieve. It requires agreement. Nothing more than that. There is too much division or a want for more and more of an asset (not currency) that holds bank the development of a new currency outside the control of a private banking system.

Another halting point to this development of an alternative currency is the division on what should be done. Here is Steemit this issue is prevalent on what is the best way to do this. A focus on big business and mass adoption is seen as the way to move Steem forward. It i this focus that prevents the growth and benefits we can turn Steem to offer.

A focused point of the use of Steem should be made. It should not be international. It should be focused to a locality and then expanded and more hubs of use put in place.

Establish security to the use of any new currency and its value is essential for daily usage. If there is a want to remove power over the finances of nations. An assurance of value to any currency is needed.

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Right now we are Crypto is like an illusion. History has shown us the same thing over and over again. We see things certain ways because through our history we have been told "this is what is". We see initial benefits from something been done. The later damages something may do are not looked at as a negative of the same thing.

It's nature. Nature has thought us to view things through the memory of past experience. I can show this with an image from a YouTube video. You can see the image at around 6 min into the video. Or just below.

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In the video you re asked to look at the white dot in the top image, focus on that point. Suggested amount of time is 30 seconds. But try it. After 30 seconds look at the bottom pictures. The two pictures are the same with one being flipped to show a mirror image. Do you see the magic?

This same illusion is what is happening in the Crypto world. People are tricked by the words of possibility about a currency while the building of an asset is taking place.

This is so plainly visible and evident here on Steem. The same people saying things time after time and gaining the support of whole communities and Steem Inc. Steemit Inc itself, has betrayed the members of the platform. Giving privilege and advantage to a very small community of misplaced leadership disguised to hide the personal gains received.

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Just think about it.
In the physical world. The use of a currency was gained by the value it could offer others using the method of a loan. Who wants to take a loan out in Crypto when they do not know what the repayments will be.

Let us say you took out a small mortgage of $100,000.

This $100,000 might have an alternative value in a Crypto. Lets presume that the value is equal 1 - 1.

$100,000 FIAT will still be worth $100,000 tomorrow. This cannot be said for the Crypto world of currency, the fluctuation can hold too much variation.

Which am I paying back. Am I paying back $100,000 or C100,000 If I ma paying back in C (Crypto) And I have to repay C100,000 Should the price of the Crypto rise. by any significant %. The ability to repay that loan from a persons physical world earning of FIAT can become impossible.

There are no benefits to any of the Crypto out there other than to hold an asset that may gain some value.

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Giving privilege and advantage to a very small community of misplaced leadership disguised to hide the personal gains received.

Well said bro.

You make some interesting and humbling points there. It's hard to really see how things will turn out in the grand scheme of things but if one thing should be made clear it's that you should only spend what you can afford to lose in any investment, whether it's fiat or crypto.

Investment is risky business in any arena, one needs to have a strong stomach!

I liked the optical illusion too, pretty cool effect!

Merry Christmas 🎄

I agree with what you say on investing.

However it should be more clearly defined what people are investing in. What the Crypto is should be emphasised asset or currency. That Crypto can be a currency is what the majority of population hear. Reducing the need for banks.

Problem arises is that there is no ambition to make a usable digital currency.

Season greetings

Well, the way it works in the UK is you only get taxed once you have converted everything to £ and back in to fiat. Anything converted above £10,000 is then subject to capital gains tax so that's how it works here.

I think of cryptocurrency like another currency really. You can't use £ in Europe or USA so you need to exchange and then you can use it in that country/network. Then if you want to convert it back to your own currency you can.

There's still a long way to go with it all but like you mention if there's no use for a digital currency then it will die off (like anything really, and we have seen this with a few projects already).

I think most would agree that the current system of finance is full of corruption, If not corruption, full of faults within the system. Financial systems of today are designed to enrich those who already possess wealth. This works by default. The side effect is a majority will continue to find things harder and harder financially with time.

I see no reason why at the moment a Standard Digital currency cannot be established. Pegging other currencies digital or fiat to it, Not it pegged to another currency.

I see methods of how this can be done with agreement and expansion comes from the benefits provided. Stability and usage.

Prevention of this is the greed factor If something moons people want to have as much as possible of that token.

We could go around in circles talking about this, for the last two years I have been saying this same thing. Creating a usage for Steem and the ability to have a related token as a measure to standardise. Initial profits are limited because of the re-investment needed, Thus short term visions blocks the benefits of a future.

P.S. Our new project Silver Quest does aim to provide a start to this change.

I sit regular in the voice chat of The Alliance Should at any time you wish to connect on topics like this.
https://discord.gg/rWeS8K

This is like multiple levels beyond my current understanding of economics and money. I know there's something fundamentally wrong with the way it's currently running in the financial system. Only have to look at previous recessions and the actions taken by "those in charge" to see that something is grossly wrong with the situation.

Glad I stumbled across your blog, I've not heard of Silver Quest or the Alliance so far on my steem journey so will have a look at what it is you're talking about as I like researching stuff to have an idea.

Catch up with you soon!

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I am confident I could tell you all the morals to live by that is wrote in the bible.

If you understand the bible. You might see that offering reward for reading the bible is not the best way to have others understand the bible.

You are talking to someone who i not about me. But, the possibility of everyone.