Real reasons for opposing Crypto currencies
By: Roger Adhikari, Chief Finance Officer, XcelTrip
There isn’t a day goes by without some so-called expert on business or economy making some disparaging remark against Crypto currencies.
The noted economist and former economic adviser during Clinton administration, Nouriel Roubini criticized people who are supporting Crypto currencies as “Crypto-crazies”, in a recent twitter comment. Before Joining the White House, Roubini was part of International monetary fund (IMF), World Bank and Federal Reserve board.
Prior to Roubini, George Soros the billionaire investor, who made big chunk of his multi billion dollar fortune from currency trading, has been a fierce critique of Crypto currency. His disdain for Crypto trading was evident in the world economic forum, also known as “Davos summit”, last month, where he said “Cryptocurrency is a misnomer and is a typical bubble, which is always based on some kind of misunderstanding,”
Finally, who can forget Jamie Dimon, the J.P. Morgan Chase Chairman for calling Bitcoin a fraud, just to recant part of his criticism later.
All three big names, Roubini, Soros and Dimon, as well as others, who are in forefront of the criticism against Crypto currencies, are part of the Banking Industrial Complex, similar to but even more powerful than the military industrial complex — and, whose future fortune and standing as expert is directly tied to the continuation of the traditional system with existing paradigm.
It’s noteworthy that the meltdown of the US mortgage market from 2007 to 2010 was not only caused by the Banking Industrial Complex but most bank CEOs, including Dimon were personally responsible for creating the biggest economic crisis in the US since the great depression of late 1920’s, for which, Dimon was fined $13 billion. Had not been for his cronies in the white house, he would have, probably, never come out of jail, like Kenneth lay, former Enron CEO, who ended up dying there for his misdeeds, which was significantly less consequential to the country than the crisis of 2008 caused by Dimon and his bank buddies.
Similarly, in 1996, George Soros was accused of manipulating currency market and in the process bringing the whole British economy to its knee.
The underlying argument of this analysis is, public needs to be aware and take the comment of these so-called experts with grain of salt because — first, they are too vested in the existing economic paradigm. Second, they lack expertise to make comment on something they have no previous training or knowledge of, and third and final point is, it’s their mischiefs and misdeeds that have created huge and unsustainable economic system in the world that is about to collapse right under their nose. Therefore, they have every reason to support the existing system and oppose new idea.
The Crypto economy is in its infancy, and no one — not even Soros, Dimon or Jannet Allen, Federal Reserve Chair — has definite foresight to know how will this impact to the public at individual level and economy as a whole.
However, what they know is, Crypto currencies will change the role of a bank or the traditional monetary system for good, which they helped built for over hundred years. And, such change will also destroy the power of the “Banking Industrial complex”, monster that controls the global economy.
In that sense, they are right. Not only crypto currencies, but the underlying technology that supports Crypto transactions — Blockchain — is going to change the global paradigm, from government to business.
The idea, billions of dollars’ worth of currencies moving around the world without getting any bank involved, or, individual holding his or her money in electronic wallet, spending it as needed, without going through banking network is not some far-fetched idea, it’s happening today.
In the same vain, over one hundred crypto currencies and tokens have already hit the market, potentially competing with currencies issued by governments of the world in a near future.
Therefore, their fear and opposition to the future monetary system is understandable, yet they have no choice but to reckon with new reality.
Consequently, they are coming up with a regulatory response to mitigate the new challenge caused by Crypto rise, as a temporary measure, until its impact is fully understood. The regulation has become especially important in China and South Korea, where Crypto activities have exponentially risen in last two years, resulting in many new ICOs without sound economic basis.
In the United States, few days ago, SEC too appeared before Senate and made recommendations for Crypto Regulations.
It should be no surprise to anyone that central bankers of the world, backed by banking interest, holding a summit style meeting to stop Crypto currencies in near future, just to realize the inventor of the technology has far smarted them out.