How Will Banks Control Bitcoin?

C O N T E N T S:

KEY TOPICS

  • Some cryptocurrency experts think that big banks cannot stop Bitcoin (BTC) and other cryptos even if they develop their own blockchain.(More…)
  • Many banks and centralized systems like Paypal won’t allow poker site transfers – especially in the U.S. Why would someone not be allowed to play with their own 100 bucks for some entertainment?(More…)
  • Many people say that lightning networks segwit would actually make the Bitcoin more centralized and actually make it controllable by a company or entity like a government or a bank right.(More…)
  • On August 31 st 2017, Financial Times announced that six of the world’s biggest banks have joined a project to create a new form of digital cash that they hope to launch next year for clearing and settling financial transactions over blockchain, the technology underpinning Bitcoin.(More…)
  • The owner of a bitcoin transfers it by digitally signing it over to the next owner using a bitcoin transaction, much like endorsing a traditional bank check.(More…)

POSSIBLY USEFUL

  • Denouncing Bitcoin as the future global currency, Garlinghouse made clear that Ripple aims to surpass Bitcoin through faster transaction speeds and applicability in the banking marketplace.(More…)
  • These are people or groups that use computers to verify and validate transactions via algorithms that, once solved, produce additional bitcoin supply for the miners (up to a hard limit of 21 million bitcoins).(More…)

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How Will Banks Control Bitcoin?
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KEY TOPICS

Some cryptocurrency experts think that big banks cannot stop Bitcoin (BTC) and other cryptos even if they develop their own blockchain. [1] The decision whether big banks will develop their own blockchain or use Bitcoin (BTC) as a substitute or complement and as an enhancement of national currencies is a big decision to banks than just talks. [1] Just recently, the same banks played another big role as they stood as keepers of fiat flowing between national currencies and cryptocurrencies such as Bitcoin (BTC), not exempting Ethereum (ETH) and Ripple (XRP). [1] Digital currencies developed by banks will flow through private, centralized networks as opposed to a network like Bitcoin, which is public and decentralized. [2] Kelly Tyler, Chief Commercial Officer at A7 Core, and CEO of A7 Core, which is raising capital via an ICO to move coupons to a blockchain, approves that banks cannot stop Bitcoin. [1] This gives banks no choice than to adopt Bitcoin (BTC) or cryptocurrency in their banking system. [1] Banks actually have the power to make or destroy Bitcoin (BTC) and other coins. [1]

It has several main rivals: Ethereum, a cryptocurrency that is also a platform for smart contracts on the blockchain; Bitcoin Cash, a fork of Bitcoin with a larger block size designed for greater scalability; Ripple, a blockchain payment solution platform with a native cryptocurrency (XRP), which several banks are test piloting; and many other cryptocurrencies that behave like Bitcoin but with lower fees and faster transaction speeds. [2]

According to blockchain.info, Chinese chipmaker, Bitmain and its subsidiaries, BTC.com and AntPool, control more than 40% of the world’s Bitcoin mining power. [3]

Many banks and centralized systems like Paypal won’t allow poker site transfers – especially in the U.S. Why would someone not be allowed to play with their own 100 bucks for some entertainment? With bitcoin there is no one to censor or stop their transactions, showing one of the true advantages of decentralized money. [4] The main reasons people deposit money in the banks are for security and digital money (2 things Bitcoin is the best at). [5] Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. [4] Bitcoin Is Controlled by China, Wont Disrupt Banks: Ripple CEO You are using an outdated browser. [6] Of course you have to obfuscate the bitcoin transaction because places like coinbase have the same issues that traditional banks do in this regard. [4] As if bitcoin fans didn’t have enough to worry about these days, a widely respected international bank has just published a scathing analysis of the cryptocurrency questioning whether it ever will be more than a fad and a costly fad for its adherents. [7] This is exactly why banks are adopting the blockchain technology behind bitcoin and crypto. [4] BIS has done a service for finance professionals in providing a baseline judgment of whether bitcoin is worth serious consideration as an asset class at a time when investment banks such as Goldman Sachs are offering clients access to the market. [7] A much more appropriate answer is that big banks cannot kill bitcoin. [5] BIS acknowledges that some technologists believe that the technology underlying bitcoin, known as blockchain technology, could have more value for central banks or international financial systems than bitcoin itself. [7]

From my perspective the advantage of bitcoin is being in complete control of your own money. [4] Note that the Chinese mining pools BTC.com, Antpool, F2Pool and BTC.TOP control 59.7% of the hashrate of the bitcoin network. [8] Bitcoin is under the control of China due to the fact that the country has the largest mining pools for its extraction. [8] There are four miners in China that control over 50% of Bitcoin,” he said, according to financial publication TheStreet. [6] Among the more damning findings of the BIS paper is the cost of injecting trust into the bitcoin system by vesting control of the bitcoin supply in the hands of “miners.” [7]

Somewhat ironically you could actually put 1 of those in a safety deposit box in a bank (if available), but at least the bank wouldn’t be able to control your money. [4] A cryptocurrency-based economy would mean that this monopoly is lost, and a bank may find itself needing to sell/buy large amounts of cryptocurrency to regain control. [9] The central banks are able to control M0, but the broader the definition of money, the less control they have. [10] Under the current system, central banks do not fully control the money supply, except M0. [10] A more important question to the IMF though is if central banks could lose the ability to control the national economy. [9]

Many people say that lightning networks segwit would actually make the Bitcoin more centralized and actually make it controllable by a company or entity like a government or a bank right. [11] Okay, so on Reddit it says conspiracy; the government created Bitcoin possibly the rand corporation or federal banks right. [11] Okay, so that happened and then we saw Jamie Dimon back in September you know back in September Jamie Dimon the CEO of Chase Bank; the biggest bank in financial institution in the United States of America. he in September of 2017 called coin a fraud and then in January of 2018 says he regretted calling Bitcoin a fraud and believes in the technology behind it right. [11] Wells Fargo joined a growing list of banks banning the purchase of cryptocurrencies such as bitcoin on credit cards. [12] Reports suggest that Argentina has become a hotspot for bitcoin activity as banks there stagnate. [13] Decades before Bitcoin, the arrival of the internet prompted speculation that the relentless march of information technology would eventually put central banks in the same category as typewriters and cassettes–obsolete inventions that people once thought would last forever. [14]

They think they can gain control of the cryptocurrency and Blockchain movement, by hijacking Bitcoin, by using block stream to hijack Bitcoin in its development progress. [11] To gain control of this new credit ledger system that has been developed from Blockchain and ultimately from Bitcoin could that be going on? Or is that just a conspiracy theory right. [11] It’s not supposed to be controlled by the government. so let’s be so decentralized that no one or no single entity can overtake and control Bitcoin right. [11] Why? could there have been a government and banking conspiracy that has taken over Bitcoin core and Bitcoin cash is kind of the revival of Bitcoin in its truest sense to unlock or to unchain, unleash the general public from the banking and government control. [11]

They impose capital controls on their populations that prevent them from doing even basic things like taking cash out of the bank. [13] Citigroup was the first Wall Street bank to take a stance on the divisive gun control debate five weeks after a gunman killed 17 people at a high school in Parkland, Florida. [12] The rise of digital assets would make central banks unable to control these interest rates, thus unable to implement their monetary policy. [15]

On August 31 st 2017, Financial Times announced that six of the world’s biggest banks have joined a project to create a new form of digital cash that they hope to launch next year for clearing and settling financial transactions over blockchain, the technology underpinning Bitcoin. [16] DTC will use the same technology that underpins digital currency Bitcoin to connect all parties involved in international trade — buyers, sellers, transporters, banks financing the deals, and so on. [16]

Bitcoin is not controlled by any central organization, bank or government. [17] Buy and sell bitcoin fast through a cash deposit at your local bank branch or credit union, or via a money transfer service. [17] Ripple is designed to be centralized, and operated by banks, whereas bitcoin isn’t. [18] Buy bitcoin instantly with credit card, PayPal or bank account on this peer-to-peer lending platform. [17]

Perhaps El-Erian’s prediction for governments issuing their own cryptocurrencies is less about migrating away from cash and more about trying to usurp Bitcoin and maintain control over financial markets in the long term. [19] Ripple’s CEO Brad Garlinghouse claims that “Bitcoin is really controlled by China” through “four miners that control over 50%” of the leading cryptocurrency. [20] Ripple’s Garlinghouse: “Four Miners in China Control Over 50% of Bitcoin” was last modified: June 13th, 2018 by Rick D. [21]

Its digital asset XRP has grown to become the fourth biggest cryptocurrency by market capitalization (after bitcoin, ethereum and bitcoin cash), and banks are now joining in droves to improve their cross-border payment capabilities. [16] Should central banks issue digital currencies or CDBCs? Perhaps, if the banks control who acts as a trusted node. [22]

The owner of a bitcoin transfers it by digitally signing it over to the next owner using a bitcoin transaction, much like endorsing a traditional bank check. [23] At this point, he drew attention to bitcoin saying that it usually takes more than half an hour to arrange transactions, hinting that XRP has benefits in the face of BTC. Thus, banks will turn to what is better both in terms of price and efficiency. [24] Niall Ferguson, a public intellectual identified with conservative leanings told Bank of England that Bitcoin may be the future. [25] What these cryptocurrencies would eventually look like is a Bitcoin — except with the central bank having the ability to add or remove individual units from circulation at any given time. [26]

As he puts it “Bitcoin, from the very beginning, was all about decentralised, peer-to-peer digital cash, without the need for central intermediary, without the control of a government, and these features remain whether or not a government issues its own digital currency.” [26] Due to the anonymous nature and the lack of central control on these markets, it is hard to know whether the services are real or just trying to take the bitcoins. [23] Some wanted to use it in order to control fees while others wanted it to solve the mining problems of Bitcoin. [25] “There are four miners in China that control over 50% of Bitcoin. [24] Basically, Bitcoin gives the user the power over their funds and since no one controls it, no one else has power over it. [27]

To have a workable cryptocurrency, one central point of control to the monetary system needs to be reintroduced by assigning a central bank the ability to regulate the supply of tokens on their cryptocurrencies blockchain. [26] It’s unlike gold and the fiat, which are under the control of established financial bodies like central banks. [27] In the current system, central banks control a vital means of production: capital. [28]

POSSIBLY USEFUL

Denouncing Bitcoin as the future global currency, Garlinghouse made clear that Ripple aims to surpass Bitcoin through faster transaction speeds and applicability in the banking marketplace. [3] Garlinghouse explained that Bitcoin and the global cryptocurrency and blockchain industries are still in early stages of development. [3] Bitcoin as a cryptocurrency has established partnerships with various institutions such as fintech firms to develop the applications of blockchains in capital markets, says Ringgold. [1] Explaining pitfalls of Bitcoin in its current state, Garlinghouse added that the world’s leading cryptocurrency is in fact, quite centralized. [3] Investors should do their due diligence before making any high-risk investments in Bitcoin or cryptocurrency. [2]

The risk of creating their personal blockchain cannot be overlooked either will be adopting Bitcoin be any big news to them. [1] This in relative terms does not mean Bitcoin will replace fiat money although it could replace other fiat currencies like the dollar. [1] Bitcoin is in the early adoption phase with a limited number of merchants accepting it as a form of payment. [2]

Ripple, as a payment remittance network and gross settlement system based on the blockchain, aims to transform the way that banks and people transfer money around the world. [3] Banks will either use digital ledger technology, like blockchain, to build highly centralized networks to compete vigorously with decentralized networks or die with their slow legacy systems. [2] Ripple (XRP) blockchain has been implemented in the National Bank of Abu Dhabi (NBAD) and has become the first bank in the Middle East to use Ripple’s solution to provide real-time cross-border payments to its customers. [1] Some banks have already started introducing cryptocurrency into their banking system, including blockchain. [1] The advantage of a bank adapting and adopting cryptos such as BTC is likely to have more people banking with them. [1] My personal contribution will be that big banks should help make the cryptos rather than destroy them and by introducing BTC and Altcoins in their economy and banking system. [1]

“Blockchain will not disrupt banks it will play an important role in the way our system works. [3] The blockchain is a decentralized technology which most banks cannot adapt or risk. [1] As for cryptocurrencies replacing banks, the technology is there. [2] They should also take a deep look at how the National Bank of Abu Dhabi (NBAD) has profited by using Ripple XRP. [1] Banks have been playing a very important role in global capitalism almost in every country. [1] The sooner banks adapt and adopt some form of blockchain technology the more relevant they will remain,” Tyler added. [1]

They are the gatekeepers of national currencies flowing between central banks and the general public. [1]

I hereby confirm to solely control the address and/or cryptocurrency wallet used for any token purchase or use on this site, not to be acting on behalf of any third party and not to transfer the control of mentioned address to any third party prior to having received the HADE Token. [1]

These are people or groups that use computers to verify and validate transactions via algorithms that, once solved, produce additional bitcoin supply for the miners (up to a hard limit of 21 million bitcoins). [7] By killing bitcoin if you mean to discontinue its use such that it loses its intrinsic value, that can?t happen as long as any two people in this world chose to use it as a medium of exchange. [5] Despite the price fluctuations and come what may. bitcoin is a currency that’s governed by the mass majority of the people. [5] The BIS report, which is a chapter in the institution’s annual report, comes against a backdrop that includes a six-month price collapse, government enforcement actions against alleged cryptocurrency frauds and reports of hackings costing bitcoin owners the equivalent of tens of millions of dollars in the blink of an eye. [7] The original cryptocurrency, Bitcoin, was envisioned as a replacement for fiat cash. [10] The promise of cash replacement cryptocurrencies like bitcoin is that they will, well replace, fiat money. [10] Blockchain-based cryptocurrencies like Bitcoin are inherently slow if we want to trust the transaction, at least 10 minutes, or even an hour, and are not costless. [10] There are other grounds to doubt whether bitcoin can grow large enough to serve financial transactions on anything like a global scale. [7] Things like gold or Bitcoin (or any of the cryptocurrencies) just don?t do that. [10] Most of the cryptocurrencies fluctuate wildly, I calculate bitcoin to be about five times as volatile as the SP-500 index. [10] Some cryptocurrencies, starting with Bitcoin in 2009, are designed to be direct replacements of fiat money. [10] While even the most hopeful crypto currency proponents don’t usually emphasise the possibility that bitcoin fully replaces fiat money, we often hear them express the hope that we will take some steps towards that. [10] There are three things that fiat currency can offer that Bitcoin can’t protection against structural deflation, the ability to act as a lender of last resort, and the “smooth the business cycle” in the event of unexpected shocks to the system. [9] Bitcoin is a distributed, worldwide, decentralized digital money. [4] In this they resemble “commodity money” such as salt or rice–except that unlike those commodities, bitcoin has no intrinsic value. [7] A safety net in case they slip and steal your money? Why would bitcoin need that. [4] The money supply should be tied to some real good, typically gold or Bitcoin. [10] The BIS report includes a precis on the definition and role of money worth a read by bitcoin fans and skeptics alike. [7] Bitcoin and other such instruments aspire to the three roles of money, but can’t deliver, BIS says. [7]

You can expect the bitcoin faithful to dismiss the BIS report as the incumbent central banking establishment trying to bring down a challenge to its primacy. [7] With any understanding of Bitcoin, one can very quickly figure out that a centralized banking model is non starter. [5]

It might be an overstatement to say that Brad Garlinghouse has been on a bitcoin-bashing tour he is, after all, a bitcoin investor himself but it’s undeniable that the Ripple CEO has used the recent market downturn as an opportunity to throw shade at the flagship cryptocurrency. [6] The most popular cryptocurrency, Bitcoin, does not offer this – unless I am really careful in hiding my tracks, using skills that are only available to a small group of users. [10] Meanwhile, while Bitcoin is the most liquid cryptocurrency, it is not what one would call ‘liquid’ in the sense that fiat money is. [10] Many cryptocurrency advocates propose Bitcoin or something similar in its place, primarily because it supply is fixed. [10]

The electrical use devoted to mining bitcoin alone already equals that of Switzerland: “The quest for decentralized trust has quickly become an environmental disaster.” [7] Bitcoin could become less volatile simply through long use establishing institutional trust, and artificial intelligence could smooth those shocks. [9]

The latest jab came this week in Boston, where speaking at the 2018 Stifel Cross Sector Insight Conference Garlinghouse told a packed house that bitcoin is “controlled by China.” [6] Garlinghouse told the crowd: “Bitcoin is not the panacea we thought it would be.” [29]

No, first they will probably get rich with it then they will run both fiat and crypto parallel because killing bitcoin doesnt make fiat any better. [5] Educating people and having simple tools available for the average user to control/transact bitcoin securely is the way to go. [4] A large percentage of Bitcoin enthusiasts are libertarians, though people of all political philosophies are welcome. [4] “Bitcoin is not the panacea we thought it would be,” he added, echoing his remark from earlier this month that bitcoin is unlikely to become the global currency that many including Jack Dorsey and Steve Wozniak hope that it will be. [6] Bitcoin and a lot of crypto’s have a place in the world and the economy, but simply thinking bitcoin can actually become the currency of a state or the globe will not happen. [4] A community dedicated to Bitcoin, the currency of the Internet. [4] According to him, no large economy will allow bitcoin to become a single world currency. [8] The BIS report in itself may not shake the faith of the bitcoin faithful, whose commitment to the currency often rests in an anti-government ideology. [7]

Bitcoin suffers from design limitations, with high transaction costs, slow speed and privacy particularly problematic. [10] Over the past eight months, (to end of May 2018) the transaction costs for Bitcoin have ranged from $0.83 to $55. [10] For bitcoin to verify transactions on the scale of Visa or Mastercard systems today would require supercomputers and “communication volumes could bring the internet to a halt.” [7]

If bitcoin will never replace fiat money, it only has one logical terminal price, 0. [10] This FUD does have a temporary effect on the price but bitcoin has a history of bouncing back from such drops. [5] Based on that, bitcoin may yet increase in price by 10,000%. [10] Despite the drop of Bitcoin price rate below $6,000, Brian Kelly, head of BK Capital Management, remains optimistic and believes that is no big deal. [8] Bitcoin remains hugely volatile its price in dollars gained 4% Monday, according to the Coindesk service, though at about $6,700 it has lost about two-thirds of its peak of nearly $20,000 in mid-December. [7]

You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. [4] Saying that bitcoin is bad because it doesn’t have FDIC coverage is like saying that bitcoin is bad because it doesn’t have airbags. [4]

Recall, in May Brad Garlinghouse said that bitcoin as a technology will lose its relevance. [8] Brad Garlinghouse believes that bitcoin has not become a universal asset because of all the problems. [8]

I do think that bitcoin allows new possibilities for securing it compared to cash, gold, etc in your home. [4] I mean they would try to create FUD and secretly buy all they can, but the Bitcoin network won?t go down. [5] It’s a great tool, no doubt, but Bitcoin has one big obstacle that prevents it from mass adoption: the network capacity. [4]

Download the Bitcoin.com Wallet right to your device for easy and secure access to your bitcoins. [30] Perfect for beginners, the Bitcoin.com Wallet makes using and holding bitcoins easy. [30] “Consumption” in Bitcoin is easy to criticize because it is obvious, whereas the hidden externalities of the traditional financial system are massive.” [4] The total value of Bitcoins, known as the market cap, stands at about $128 billion as of May 2018. [10] Sticking to my back of the envelope calculation, a risk neutral investor will hold bitcoin if she expects the chance of bitcoin replacing M1 to be higher than 1% If not, she should sell it short, at least in theory, it is likely to be very costly in practice to short bitcoin for any appreciable time. [10] Technically I won’t own bitcoins anymore, just tokens on the Xapo database that supposedly represent bitcoins. [4] In this scenario, I would argue that the bigger advantage of bitcoin is that your friend is able to make deposits to a poker site at all. [4] All the latest bitcoin news presented this week by Roger Ver, CEO of bitcoin.com and Alfonso Rocha, who is the lead developer of the Bitcoin.com wallet. [30]

As it observes, a functioning monetary system must comprise three features a “unit of account” that allows price comparisons for goods and services, a medium of exchange accepted as payment by buyers and sellers alike, and a store of value that remains stable over time the money in your bank account, wallet or mattress shouldn’t fluctuate widely. [7] The blockchain is instant and when blockchain is utilized by private banks, it rapidly speeds up the transaction time. [4] With a bank’s blockchain, I now have to trust the bank and deal with an inefficient payment network. [4] “Blockchain will not disrupt banks,” he said, though “it will play an important role in the way our system works. [6] He also suggested that the blockchain will not destroy the banks, but will play an important role in the financial ecosystem in the near future. [8]

Lastly, these banks could try to make their money more user-friendly, making it digital, and perhaps even issuing tokens of their own. [9] Banks use fractional reserve lending, they don’t actually have your money, they have a tiny fraction of yours and everyone else’s money and lend the rest out. [4] We might not trust banks, so we cash in our savings and stuff the money under the mattress. [10] The core of the story is that the banks held his money in limbo and charged him for it. [4] You still can outside of the U.S. The reason is that the U.S. gov passed a law that made it illegal for banks to send/receive money from the online poker sites. [4] Banks and traditional systems are simply archaic by comparison when it comes to simply moving money electronically. [4] They keep enough money on hand to cover your expected day to day needs but you, and every other customer of the bank, all know that they can’t possibly return all of your deposits. [4] The use of electronic fiat money requires money to go through several systems, often starting with a payment processor, then a bank on both ends, and a payment system in the middle. [10] I trust my bank and my payment system much better than any cryptocurrency intermediary. [10] They accomplish different things if banks are able to provide payment systems to customers that are multiple times faster than the current status. [4] For the most part of human history people were their own banks. [4] The CEO of that bank said to Garlinghouse, “The smartest thing you’ve done is not have ‘bit’ or ‘coin’ in your name. [29] Elsewhere in his comments this week, Garlinghouse struck down the idea that blockchain technology in and of itself is enough to disrupt banks and render them obsolete. [6]

Elections are near government will not do anything which will affect their vote bank. [30] The government doesn’t need to pass and enforce an online poker ban, they just twist the arm of the banks. [4] At least here in the UK, I can transfer any amount out of my bank account to someone else instantaneously at no cost, using my mobile phone. [10]

If the central bank issues cryptocurrencies, the supply of money, in all its forms, all the way from M0 to M3, can be controlled – in theory. [10] Perhaps, the central banks will start holding cryptocurrencies as reserves or large retailers, like Amazon, will start accepting cryptocurrencies for transactions. [10] A central bank cryptocurrency would likely have the price stability that other cryptocurrencies lack. [10] As a practical matter, a central bank issued cryptocurrency would be indistinguishable from a central bank issued fiat currency. [10] This is perhaps the biggest advantage of central-bank-issued fiat currency (at least when the central banks are credible) over any of the cryptocurrencies as currently envisioned. [10] “Such central bank digital currency could be exchanged, peer to peer in a decentralized manner, much as crypto assets are,” writes He. [9] It only holds value if the central bank and the government manage it properly, and in cases where they do not, the use of fiat money can be very costly, and in extremis result in hyperinflation. [10] Many advocates of cryptocurrencies argue that, while there may be little reason to move to cryptocurrencies for those living in developed countries with relatively credible central banks and governments, that does not apply to all. [10] Most central banks are actively studying cryptocurrencies and have even considered issuing their own. [10] Besides just keeping up with popular technology, many central banks would like to get rid of cash, like the Bank of England (or at least its chief economist). [10] Monetary policy has improved since the 1970s, and we now know that a credible central bank, with sufficient political cover, using inflation targeting, is the best way to achieve price stability and stable growth without too many deep recessions. [10] Central banks set their policies by setting interest rates in relation to the country’s money reserves, of which it is the monopoly supplier. [9] Central banks must defend themselves against cryptocurrency, the report says, by carrying out ‘effective monetary policies.” [9] This is this one area in which central banks might have an advantage if they issued cryptocurrency. [10] Why should a central bank issue cryptocurrency? Bech and Garratt argue that retail clients might benefit from anonymity and the ability to hold accounts directly with the central bank, while wholesale clients might benefit from increased efficiencies. [10] Often described as the central bank for central banks, the BIS acts as a counterparty and agent for central banks in their transactions. [7] His words echo those of Christine Lagarde, Managing Director of the IMF, who said in a speech at the Bank of England last year: “The best response by central banks is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve.” [9] That is only an advantage if the alternative is unstable fiat currencies and does not apply to countries with credible and well-managed central banks. [10] He argues that they first thing that central banks should do is “strive to make fiat currencies better and more stable units of account.” [9]

Therefore, for those who resent government control, forms of money that are outside of the control of government, and whose quantity and integrity are guaranteed by a technical solution, are attractive. [10] In order to do that, not only does the supply of money have to be variable, it also has to be under the control of the government. [10] This gives you complete control over your own money, but it comes with responsibilities. [4] This might be a good idea because, conceptually, it would give more fine-grained control of inflation, might insulate failing intermediaries in a crisis, and perhaps most importantly, would provide control of higher forms of money in a crisis when everybody is rushing to convert M3 to M0. [10]

Fiat money is controlled by the government, and governments are not shy in using their powers over money to control their citizens, and even other countries. [10] Because even with cryptocurrencies, the governments can and will exercise control, as discussed here. [10]

Keep in mind that when using a mobile device, you can control or disable the use of location services by any application on your mobile device in the device’s settings menu. [9] In the event that Finance Magnates LTD is acquired by or merged with a third party, we reserve the right, in any of these circumstances, to transfer or assign the information we have collected from you as part of such merger, acquisition, sale, or other change of control. [9] In the unlikely event of our bankruptcy, insolvency, reorganization, receivership, or assignment for the benefit of creditors, or the application of laws or equitable principles affecting creditors’ rights generally, we may not be able to control how your information is treated, transferred, or used. [9]

Trying to control deleveraging in times of crisis could well end up amplifying the same crisis. [10] To be clear, Finance Magnates LTD does not itself store your credit or debit card account information, and we do not have direct control over or responsibility for your credit or debit card account information. [9] You control the personal information you allow us to have access to through the privacy settings on the applicable social media site and the permissions you give us when you grant us access to the personal information retained by the respective social media site about you. [9]

Among other criticisms, he stressed blockchain technology is mostly hype, and that bitcoin core (BTC) is controlled by Chinese miners and has no hope of being a world currency. [30] While Ripple certainly was the hot topic, Mr. Garlinghouse also took the opportunity to bash its main decentralized competitor, bitcoin core (BTC). [30]

If you have a fairly powerful computer that is almost always online, you can help the network by running Bitcoin Core. [4] Almost all Bitcoin wallets rely on Bitcoin Core in one way or another. [4]

Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. [30]

Bitcoins are considered “commodity money” whereas central banks? money is considered “credit money.” [15] Dong He, Deputy Director of IMF’s Monetary and Capital Markets Department (MCM), stated that the price of Bitcoin is never stable since its value solely depends on the percentage of people who value it and use it. [15] Once all Bitcoins are in use, people will likely try to store them since there is nothing that has a greater value to trade. [15]

Bitcoin might be a plaything for many, a fun way to experiment with digital cash or perhaps to buy things online that you?d rather people didn?t know about. [13] Evidence suggests that people are increasingly looking to bitcoin as a viable alternative to their own beleaguered currencies during times of crisis. [13] As the Greek crisis unfolded, bitcoin exchanges reported a healthy bump in volume as people traded the cryptocurrency around the world. [13] They literally just came out in the last day or two, I know they’ve been talking about it for a couple months, but yesterday they just came out and they really gave some anti Bitcoin and cryptocurrency sentiment in the market which has kind of started to help propel the price downward for Bitcoin right. [11] I mean he would short it he would short Bitcoin and it would cause the price to go down and maybe he is shorted it right. [11] September 12, 2017 right so, let’s look at the price of Bitcoin on 2017 September 12th right. [11] Okay, so what is actually going on here? Why are all these big-name players calling Bitcoin at fraud right? We?re like Mark Cuban who’s also founder of a big technology company is bullish on Bitcoin. [11] It can be bought and sold via bitcoin exchanges online, but also through indirect transactions via sites like LocalBitcoins.com. [13]

Ironically, at the same time you know Bill Gates chairman or old founder of Microsoft and Warren Buffett, they both came out as harsh critics to Bitcoin and cryptocurrency in general. [11] It’s that time of year again when Bitcoin and other cryptocurrencies face a bear market, and opponents take a dig. [31] Fiat trading capabilities will also be launched May 31, 2018, for bitcoin, Tether and TrueUSD. At press time, the service is only available to corporate clients in New York, California, Washington and Montana, though executives say they are working to expand this capability to retail investors once regulations are more defined. [32] Ripple’s CEO has been putting Bitcoin down for the last few weeks and this time it’s no different. [31] They both say that they hijacked one another and I mean you guys canokay the story of how block stream hijacked Bitcoin is an incredible story of money lies and greed that become more, more and more relevant to the outside world every day. [11] Garlinghouse admitted to owning Bitcoin, however, despite his views on it as a currency. [33] The most controversial statement by Garlinghouse was the link of Bitcoin being controlled by the Chinese. [31] During the interview, Garlinghouse addressed Bitcoin yet again, stating that it was “really controlled by China,” which he claims is a largely underreported story. [33]

What is it? Bitcoin Isn?t supposed to be controlled by the government in the Satoshi Nakamoto white paper. [11] Anti Bitcoin you know government friendly developers and they actually overtook Bitcoin and created Lightning Network segwit so forth and so on. [11] Beyond his original bitcoin candy machine, Knezi? is at work on another machine, one that would work with Bitcoin’s lighting network. [34]

The price of bitcoin also rose significantly as the Greece crisis deepened, lending further credence to the idea of bitcoin as a “panic” currency. [13] The price of bitcoin has historically been extremely volatile although regulatory concerns in 2018 have tempered its volatility somewhat. [13] Okay, so that when he when Jamie Dimon came out and did that the price of Bitcoin whoops let’s delete that. [11] Why doesn’t he cut? Why doesn’t he short Bitcoin right? Here is one of theif not here’s the richest man in the world saying that he would short Bitcoin if there was an easy way to do so. [11] You have to ask yourself why right? Some of the biggest names in tech, Bill Gates who obviously invented Microsoft and founded the company, you think would understand Bitcoin and Blockchain technology right. [11] Right around 10,000 Bill Gates, Warren Buffett come out they say all these nasty things about Bitcoin. [11] Buffett and Gates are the latest Bitcoin critics halting the $10,000 push right. [11] They just kind of downplay and talk trash about Bitcoin right. [11] There’s obviously you know the writing is on the wall here, he’s obviously not you know not honestly telling you the truth that he would short Bitcoin, because if he would he would actually do it and he would make billions of dollars doing it right. [11]

He then addressed Bitcoin, the current top cryptocurrency by market capitalization. [33] As with any form of highly speculative financial instrument, people shouldn?t invest more in bitcoin than they can afford to lose. [13] People in troubled economies could find themselves in even more trouble than they were in originally if they begin using bitcoin as some kind of safe haven. [13]

Wells Fargo customers can no longer buy cryptocurrencies such as bitcoin on their credit cards, the company announced Monday. [12] When a question about Bitcoin was asked, Garlinghouse continued his name calling of Bitcoin. [31] Garlinghouse repeated a sentiment he expressed earlier this month, saying, “Bitcoin is not the panacea we thought it would be.” [33]

Bitcoin has a couple of advantages over old-fashioned cash. [13] In other news, bitcoin enthusiasts with a sweet tooth are in luck: A new candy dispenser takes bitcoin as payment, The Next Web reported. [34] The second advantage is that bitcoin can be easier to obtain than other fiat currencies. [13]

The credit system, the banks have wanted use for a long time people weren’t having it and they wanted their cash. [11] Garlinghouse explained, “Banks will use what is efficient and cheaper. [33] Seattle-based cryptocurrency exchange Bittrex Inc. has established a formal agreement with Signature Bank in New York to allow corporate clients in specific states to purchase virtual tokens using USD. The move is designed to increase the amount of institutional capital making its way through the crypto space. [32] J.P. Morgan Chase, Bank of America and Citigroup announced in February they would no longer let customers buy cryptocurrencies using credit cards, and like Wells Fargo cited credit risks and market volatility. [12] This decision was later replicated by establishments like Chase and Bank of America, both of which implemented bans preventing customers from purchasing cryptocurrencies on major exchanges. [32]

Dong He explains that “an account-based system” requires a third party and records the transfer of transactions, just like a bank. [15] He stated the average transactions of both XRP and the current top cryptocurrency by market cap, saying that XRP transactions can go through in as little as four seconds, making his product more attractive to traditional banks. [33] The post also explores what could happen if banks fail to adapt to widespread adoption of cryptocurrency. [14] “I don’t know if banks or credit card companies or any other financial institution should be the arbiter of what an American can buy,” Tim Sloan, Wells Fargo’s CEO at the time, told the Charlotte Observer in March. [12] The San Francisco-based bank joined some of its Wall Street peers in banning the purchase of cryptocurrencies on credit cards and said its decision is “in line with the overall industry.” [12] Some banks are beginning to show signs of change in both attitude and business protocol, and have become more welcoming of cryptocurrencies. [32] Popular digital currency exchange Coinbase has recently developed partnerships with Cross River Bank, Metropolitan Bank and Silvergate Bank in the United States. [32] Unlike in banks, digital currencies are sent from a person to another over a common ledger, and there is no need for the interference of a third party. [15] He believes that banks and accounting firms will move to the blockchain. [34] Will the Internet make banks obsolete? This question was one of the concerns of central bankers and economists 20 years ago when the Internet took over the world. [15] In a world of decentralised currency, the role of a centralised monetary policy is uncertain, and the blog suggests that in order to compete, banks must “strive to make fiat currencies better and more stable units of account”, noting that “effective monetary policy”, with an openness to fresh ideas, offers the best route towards economic stability. [14] Noble Bank International in San Juan, Puerto Rico, also took over banking duties for Bitfinex in 2017 after the exchange’s relationship with Wells Fargo came to a sudden end. [32] We look at you know people like John McAfee who John McAfee has said you know to Jamie Dimon accept the reality that you need to surrender the banking days are over, central banks, big banks controlling money, controlling power. [11] It can be stated that the shift of the payment system depicts the future of finance, and central banks must take further steps to stay competitive with digital assets unless their goal is to decrease the demand of their money. [15] In other news, a few banks in the Philippines will experiment with a blockchain-based retail payments system, CCN reported. [34] With the pilot, five banks in Mindanao will test retail payments. [34] He then said the CEO of an Australian bank told him that the best thing he did when creating Ripple and the XRP token was to leave “bit” and “coin” out of the altcoin’s name. [33] There is a war going on between the banks and the governments and their citizens. [11] In the meantime, the government tried to avoid a run on the banks by simply closing them for a week. [13] Wells Fargo has gone the opposite way of some of those banks in its stance on restricting firearms purchases. [12] John Shrewsberry, Wells Fargo’s chief financial officer, said after its quarterly conference call with investors that the bank had no plans to end business relationships with gunmakers and such a move would require “a legislative solution.” [12] “It’s not just about banks being able to trust Bittrex; it’s about banks being able to trust crypto in general, and I think it’s really showing that crypto is turning the corner in terms of mainstream acceptance.” [32] Bank of America said in April it would no longer lend to gun-manufacturing companies that produce “military style” weapons for civilians after what Anne Finucane, the bank’s vice chairman, called “intense conversations” about company values. [12]

An analysis was made by Dong He, Deputy Director of IMF’s MCM, where he explains how cryptocurrencies have the ability to reduce the need for central bank money. [15] In a blog post titled ” Monetary Policy in the Digital Age “, fund director Dong He asserts that cryptocurrency has the potential to topple the monopoly of central banks, and that to stay relevant, banks must adapt to the demands of an evolving economy. [14] Another potential scenario is put forward–one in which the demand for cryptocurrency over bank-issued currency undermines the authority of central banks? monetary policies: “Central banks typically conduct monetary policy by setting short-term interest rates in the interbank market for reserves (or clearing balances they keep with the central bank). [14]

Ultimately if there is a single global currency through cryptocurrency or through any type of Blockchain protocol, what can you do? If you control that, if you control a global payment system that’s digitized and all digital you could turn that on or off for different citizens that either behave or step out of line. [11] People might like the idea of fleeing a sinking currency in favor of a digital one with no central control, but there are potential drawbacks. [13]

Mr. McAfee is now saying that they no longer will control the world because cryptocurrency and Blockchain have been developed right. [11] They want to make sure we?ve got robust AML/KYC processes and that we?ve got the right controls on our finances. [32]

Okay, so now that you have that, could there be this massive conspiracy going on around all of this around the bankers, around the government, around whoever to gain control of the system. [11]

Crypto money has the potential to reduce the demand for fiat money or even central bank money since these virtual assets may one day become an alternative way of payment. [15] According to the report, economy’s monetary policy is mainly controlled by the central bank, including “setting short-term interest rates in the interbank market for reserves (or clearing balances they keep with the central bank).” [15] To adapt to the new era of digital finance, central banks should consider issuing tokens of their own–Central Bank Digital Currencies–which could also be exchanged peer-to-peer. [14] According to King (1999), ceasing to be the monopoly supplier of such reserves would indeed deprive central banks of their ability to carry out monetary policy.” [14]

Many people think that Bitcoin was like this and Bitcoin cash kind of split off as this offshoot from Bitcoin right. [11]

RANKED SELECTED SOURCES(38 source documents arranged by frequency of occurrence in the above report)

1. (45) Bitcoin mining – can it be profitable in 2018? | finder.com

2. (43) How the Elites Plan to Take Down Bitcoin and Control the Crypto Movement You Decide CryptoCamacho.com

3. (42) Cryptocurrencies | VOX, CEPR Policy Portal

4. (36) How Blockchain Is Changing the Banking Industry | Captain Altcoin

5. (32) Why crypto wins : Bitcoin

6. (19) How Banks Will Help Make or Destroy Bitcoin (BTC) And Others

7. (17) Is this scathing report the death knell for bitcoin?

8. (15) IMF: Bitcoin Could Render Central Banks Irrelevant | Finance Magnates

9. (14) Is Bitcoin the Answer in a Financial Crisis?

10. (11) IMF’s Analysis: Cryptocurrencies May Reduce the Value of Centralized Banks | [blokt] – Blockchain, Bitcoin & Cryptocurrency News

11. (9) Wells Fargo customers can buy guns with their cards but not bitcoin

12. (9) Ripples Garlinghouse: “Four Miners in China Control Over 50% of Bitcoin” | NewsBTC

13. (8) Bittrex Lands Bank Agreement to Help Customers Buy Bitcoin With Dollars .

14. (8) Op Ed: I Think, Therefore I Bitcoin: The Case for Bitcoin

15. (8) Are big banks going to kill Bitcoin? – Quora

16. (7) Crypto a threat to central bank driven monetary policy says IMF Brave New Coin

17. (7) Ripple CEO: Bitcoin Controlled by Chinese, Absurd to Think it Could be Primary World Currency – Bitcoin News

18. (7) Ripple CEO Claims Over 50% of Bitcoin Controlled by China – CoinWire

19. (7) Ripple CEO Claims Bitcoin Is Under Chinese Control ZyCrypto

20. (7) Bitcoin Is Controlled by China, Wont Disrupt Banks: Ripple CEO

21. (7) Brad Garlinghouse – bitcoin is actually controlled by China | TMNews

22. (6) Can Bitcoin and Cryptocurrency Really Replace Banks? The Daily Hodl

23. (6) Ripple CEO Claims Bitcoin Is Under Control of Small Group of Miners From China

24. (6) Bank for International Settlements Calls Bitcoin Mining an “Environmental Disaster,” Hammers Crypto as Fragile & Lacking Trust | Crowdfund Insider

25. (6) Ripple CEO: Blockchain Will Not Disrupt Banks and China Controls Bitcoin | CryptoSlate

26. (6) Ripple CEO Brad Garlinghouse says Bitcoin Is Controlled by China, Wont Disrupt Banks | Coindelite News

27. (5) Ripple CEO Thinks Blockchain is Hype, and Bitcoin is Controlled by the Chinese – WorldCoinIndex

28. (5) Could Government Issued Cryptocurrencies be the Future? – Bitcoinist.com

29. (5) Bitcoin’s time could be up: Are government-backed cryptocurrencies the next big thing? – Firstpost

30. (5) Bitcoin Daily: UK Firm Tests Ripples xRapid | PYMNTS.com

31. (4) Bitcoin network – Wikipedia

32. (4) Bitcoin is Controlled by China – Ripple CEO Brad Garlinghouse – Toshi Times

33. (3) “Bitcoin’s Controlled By China,” Says Ripple’s CEO Garlinghouse

34. (3) Top Reasons Why Bitcoin (BTC) Is Better Than Dollar and Gold | Crypto Gazette – Daily Crypto News, Articles & Tips | StocksGazette.com

35. (3) IMF Official Urges Central Banks to Compete with Cryptocurrencies

36. (2) Niall Ferguson to Bank of England, “Bitcoin is the future”

37. (2) Ripple CEO: Bitcoin Is Controlled by China – TheStreet

38. (1) Is Bitcoin Going to Crash the Internet? These Experts Think So.