Cryptos by the Thousands

George Gilder asked for my comment on the new expandable cryptocurrency AMPL.  My reply.

 

George,

I haven’t heard of AMPL or YAM, but I think the author Koning has characterized them correctly.  They are just another in the long list of cryptos that are an attempt to make the creators/issuers wealthy. What drives crypto is that something of apparent value is created out of nothing.  It’s a great deal for the creator/issuer, which is why there are thousands of cryptos.  The early adopters then have a window of opportunity for potential riches based on the greater fool theory.  

All the thousands of cryptos are a game relative to the real goal of creating a functional currency.  In developed countries, there is only a need for a single reliable national currency. In the crypto world, there is only a need for a single reliable global cryptocurrency. But that is predicated on a cryptocurrency being used for the transaction of goods and services.  That hasn’t happened, though Craig Wright must be spending enormous sums in an attempt to make it happen. As it stands, beyond speculation, Bitcoin (and its hard forks) have only limited utility as a means of holding or transferring wealth.  

The current planned economic destruction under the guise of COVID, and corresponding with continued dollar devaluation and debt issuance, gives Bitcoin increased utility as a means to protect or transfer wealth—hence its recent price rise.

Central banks are behind global currency devaluation and unsustainable debt levels that will eventually result in economic destruction to the productive. (Trees don’t grow to the sky, and neither does Tesla.)  That’s the plan. The World Economic Forum openly states the agenda as The Great Reset, couched by the buzz words sustainable development, stakeholder capitalism, and communitarianism.  A stable value cryptocurrency linked to gold, as I propose, would give the global populace an alternative to the hypertrophy of finance created by central banks.

Maybe we will get to the point where someone with the means to make it happen will understand the dilemma.  Creating a stable value crypto requires an altruistic mindset for the betterment of mankind. I believe Wright is in that camp, but will only recognize his current flaw when enough time intersects with repeated failure.

Mike

2 Comments

  1. Leandro

    “A stable value cryptocurrency linked to gold, as I propose, would give the global populace an alternative to the hypertrophy of finance created by central banks.”

    But this already exists. It’s called PAX Gold.

    https://coinmarketcap.com/pt-br/currencies/pax-gold/

    https://www.paxos.com/paxgold/

    Reply
    1. Michael Kendall (Post author)

      A cryptocurrency backed by 100% gold reserves (requires trust that the gold reserves exist despite the asserted audit) has limited utility as a global currency for the transaction of goods and services. PAX Gold’s supply can only increase by the amount of gold reserves it can maintain. How can this extremely limited supply act as a global currency that competes with the dollar? That’s what I’m referencing. A decentralized stable value cryptocurrency used for the global transaction of goods and services that revolutionizes the promise of the blockchain. Yes, it can be done.

      Reply

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