MidwayCrypto

Friday 11 September 2020

NZ Long-term National Bitcoin Strategy

NZ government takes on bitcoin as reserve currency backstop. Purchases a growing bitcoin stash covertly with current account surplus/overseas funds.

After the stash is sufficient a law is passed and announcement is made. Every year the NZD cash rate to redeem bitcoin is set at a certain ratio. Citizens can redeem notes for btc.

If btc goes down, NZD goes down, which is good for exporters. Which leads to increased btc holdings for the next year. This creates a country buying during downward market situation.

If btc goes up, NZD will tend to go up also, but it is not directly correlated. We don't know what the next redemption ratio will be. The government could at the year end set it low, which would wipe out the redemption value of the nzd and control it's price going up too much.

Cash redemption would initially be the only method and would have to be done in person in New Zealand and notes checked for counterfeiting. This would not stop people overseas from doing it themselves overseas and the possibly aggregating in nz before the ratios are reset. Possibly creating more volume towards the end of each period.

This situation can be continued taking advantage of btc movements to support money printing and currency stability. Note there is a two way effect here as the countries own currency fluctuations can move the btc price. It can effectively put a floor on the btc price.

The nzd will next become a crypto currency itself and this would be exchanged for btc in existing markets. At this time the nzd becomes free floating against btc. The ratio can be removed and the government btc stash sold. The country could have made a huge amount on capital gains on btc, printed a lot of nzd and spent it all over and by this stage there is little need for a national reserve as citizens have their own bitcoin.

Thursday 23 July 2020

The Moon after Next

I was listening to an interview with Richard Werner the author of The Prices of the Yen today https://youtu.be/OdYmdKUiQNw and had a a new clearer insight into the likely path of bitcoin in the next few decades. This current bitcoin moon is likely to come from the general public getting in as a safe harbor to the current economic crisis. The one after this had seemed unclear to me, the basic concept of hyper bitcoinisation was there, but before this it wasn't clear how it could be different and on a scale higher again.

The idea that central banks during this current crisis, will create national (or super national) crypto currencies as a way to combat the current economic issues and banking issues. We are seeing this already with the ECB, China and he USA at varying levels. This comes into play in my new idea here as when implemented these countries will gradually eliminate the need for banks as transaction hubs. Using crypto technology this function can be automated. this is something bitcoiners have aspired to do for a while and the enforcement of this by countries will help fast track crypto infrastructure.

These central bank cryptos will likely have a good amount of success for some time. Eventually however they are likely to run everything into a bubble and create a crisis again, due to conflicts of interest and over spending etc, Like we are seeing now and have seen before it will be bound to happen again and at this moon after next everyone will have some kind of crypto. these cryptos will be interchangeable with bitcoin, banks will be severely diminished and people will all be able to quickly switch to bitcoin. The national cryptos will be transferable and interchangeable with bitcoin because its compatible technology and it makes sense. If some nations try to black list transactions they will get serious negative feed back. At this stage bitcoin becomes the world decentralized central bank.

On the way we should look at developing decentralised local bitcoin banks and micro lending facilities. Hopefully in the next few months will be able to afford it.

#socialanarchy #socialunion #intercellularpsudonation

What you value is society can be directly reflected in the physical value of society. I've been getting into the anarchist vibe. I think it is more moral to be anti hierarchy. Ultimate responsibility is our own and violence sucks. We can grow this, make a movement with crypto.

100 Exahash Past in a Flash

I did a cartoon when bitcoin reached one exahash and then when we hit two. Now we have blown through one hundred and before I get a chance to post this we are at something like 160. So much for NUDT Tianhe-2, this is leaves the new IBM Summit and Fujitsu Fugaku feeling dusty. See my previous post on this https://midwaycrypto.blogspot.com/2016/01/exahash.html

Check out details on teh current hash rate here; https://www.blockchain.com/charts/hash-rate

Monday 11 May 2020

HEX

Richard Heart's bitcoin derangement syndrome has resulted in a new ERC-20 crypto-currency with so many pumpamentals.

It is up 93x from its start just a few months ago. Right now for every bitcoin that you have you can get 10,000 Hex worth around $53USD.

https://hex.win/
https://youtu.be/wswrTWqjyMM

DAO

The Decentralised Autonomous Organisation

As the world goes through crisis induced reformation the concept of the decentralised autonomous organisation may take a more prominent role in the future. Existing organisations have failed to distribute wealth fairly and protect us from pandemic. The DAO may have had a shaky start with the etherium/etherium-classic scandal but with new developments on bitcoin, RSK, Taproot and of course bitcoin the crypto currency itself we should see a movement towards this kind of self organisation. In the future everything could well be DAO.