WW₿ - The Digital Front

The hash wars are officially ON LIKE DONKEY KONG! In a dramatic shift in altitude, China has launched an enormous flare indicating that the country will embrace Bitcoin as an "investment alternative." In a CNBC article from yesterday, Arjun Kharpal reported that the deputy governor of the PBOC, Li Bo, used these exact words.

Now, I know some of you might be thinking that perhaps the man misspoke or that something got lost in translation. Well, I assure you that this isn't the case. The Chinese know what happens when you cross the party because everyone in China is a loyal party member. And so long as these folks value their innards and like their hearts beating inside of their collective chests, as opposed to animating some Saudi Prince vacationing in Bahrain, there will be no faux pas, only diamond paws!

In the video above, Max Kaiser speaks with Alex Jones about the latest revelation, and with it comes some heavy speculation. I use the word heavy because Max has a lot of street cred in the cryptosphere. He is to crypto futures prediculation as Alex Jones is to politics. Yes, prediculation is a word now, and you can mark my words because I predonked this many beers ago. To put it more succinctly, they both knew almost everything in their respective areas before it happened, and then some!

One of Kaiser's eyebrow-raising comments is the rumor (or the fact) that China will be creating a gold-backed crypto, and this both amazes and terrifies me. The former because it will work, and the latter because it will break. We've been down this path before with the Federal Reserve. They made gold-backed IOUs. Then they gently rocked and lulled the U.S. into a normalcy bias. And BAM!, they outlawed the gold and put everyone in duress via legislative fiat to turn in their valuable alloys in exchange for worthless pieces of ink and paper.

I already know what some of you are thinking. I say this because I'm a bit of a mind reader. It's a cognitive distortion of mine, that or a superpower--you get to decide. Some people think that this is a fantastic idea. Why all you have to do is digitally wrap physical gold ounces inside digital bitcoins and upload them to the blockchain where everything is safe, secure, and encrypted, amirite?

Nope, the same (G)old rules apply. He who hodles the gold makes the rules, and iffin one day they decide to break the tether, remove the peg, or disappear the gold, then they'll do the damn thing, and they'll do it heartlessly. The UNITED STATES corporation did it with EO 6102. They instantly criminalized anyone in possession of gold after an arbitrary date (Mayday!, Mayday!, Mayday!) under penalty of a $10,000 fine or ten years imprisonment or both.

Now I know that some of you crypto kids have a lot of faith in cryptocurrency and disdain for gold. The truth of the matter is, this isn't an either-or situation. And one shouldn't have any hatred towards gold. Gold is a commodity that will always have an intrinsic store of value. Crypto has captured the faith in people worldwide who want to DeFi the central banksters and stick it to the man, and that's all well and good.

The obvious conclusion to this neverending attack of the clones is that the best new cryptos have to have a niche or utility so that people will invest their faith in it, and where a wo/man's faith goes, so goes the wallet. It should be clear to everyone by now that the one crypto to rule them all will be a gold-backed one. In this way, you metaphorically add intrinsic value to a faith-based asset. The Kwisatz Haderach of current-sea evolution, if you will.

You can feel the force all around us, it ebbs, and it flows. A variety of crypto is the spice of life. You put it into a cup, and it becomes the cup. You turn it into a fist, and it smashes the banks! After all the dust has settled, there is an inevitable rise of powers. They will fill the vacuum left by the fallen, and the cycle repeats. One can only hope that we're on the cusp of a golden age.

But I will tell you this: If China or any other government, save for perhaps Switzerland, is in charge of hodling the backed value, it cannot be trusted indefinitely. I think that'll be the biggest challenge with the fusion of gold and crypto.

As for anyone born into the crypto era or reading this many years from now, I will post a couple of educational videos to help you gain a solid understanding of the history of money. If it's 2029 and your attention span is where I think it is: Watch the cartoon and pace yourself. Trust me when I say that Striking Vipers will still be there after Charlie Chaplin UN-Nazis the world.