Financial, Economic and Social Mood Update (February 1, 2021)
Bitcoin reached yet another record high on the primary markets on January 8, 2021 of USD $42,000.00. Bitcoin alone comprises 63 percent of all USD $1.857 TRILLION global cryptocurrency market capitalization – this enhanced figure includes both “fully diluted market capitalization” as well as the circulating supply of the top 75 cryptocurrencies worldwide). Bitcoin and its direct derivatives (coins launched as Bitcoin spinoffs and/or launched by the founders of Bitcoin) comprise 90 percent of all global cryptocurrency market capitalization. More importantly, prices on the secondary markets (i.e., legitimate offers of sales & purchases between any and all individual potential sellers & buyers) have already gone to the moon – a Bitcoin BTC domain name at USD $10,934,100.00 for sale from Austria as of February 1, 2021 (this is NOT a typo), Litecoin LTC at USD $795, Basic Attention Token BAT at $15.99 and Orchid OXT at 39.2 cents are but a few valid examples.
If you believe that Bitcoin, cryptocurrencies, the Blockchain, Artificial Intelligence (AI) and robotics are a “joke,” then you believed that Facebook, Instagram, Apple, Amazon, Alphabet, Alibaba, Netflix, Google, Tesla, PayPal, E-Bay, Walmart and Target were “jokes.” They are not jokes. They have made their owners into BILLIONAIRES. These people and families are on the top lists of FORBES and FORTUNE. These ARE NOT JOKES. This is the current phase of the high technology revolution, which is NEVER GOING AWAY. Human beings will ALWAYS INNOVATE, and in order to achieve extraordinary financial and economic gains, one must identify VERTICAL TECHNOLOGICAL PROGRESS, in other words, to reinvent the wheel, to reinvent entire processes.
The Artificial Intelligence (AI) Blockchain is the foundation of our future. The cryptocurrency financial segment of this (of which Bitcoin comprises the lion’s share as a digital store of precious wealth) was developed to replace the failed system of central banking and government fiat paper currency – the current system which goes back in its modern form to the 17th century. The flaw in the current system is that it is possible to “print” (i.e. create out of thin air and backed by NOTHING) an endless quantity of worthless currency. The worst example of this is in the USA today where the political establishment spends money hand over fist – their “printing press” is the Federal Reserve System. Lesser examples exist in the Bank of England (the first modern central bank on earth), the European Central Bank in Frankfurt, the Swiss Central Bank and the Bank of Japan. Cryptocurrencies are different from fiat currencies in that their supply is LIMITED – hence their value.
Blockchain is the current phase of the high technology revolution – think of artificial intelligence (AI) and robotics. Cryptocurrency is the financial and economic part of the Blockchain, with Bitcoin being the first (oldest) and by far the largest of the cryptocurrencies. Bitcoin was launched in April 2010 by the pseudonym of “Satoshi Nakamoto.” This is likely a group of Silicon Valley-type high technology individuals and not just one person. The idea for a digital electronic encrypted currency came about after the financial crash of October 2007 – March 2009. Artificial intelligence (AI) is to replace fallible human beings, and a strictly limited supply of money is to replace the unlimited supply of paper fiat currencies, which are subject to corruption – politicians, central banks and voters who vote themselves unlimited benefits and financial entitlements (social welfare).
I estimate that the true rate of inflation for the first 11 months of 2020 in the USA was 85 percent per annum, and that this has ballooned to 454 percent in December 2020. A Democratic Presidency and Congress (Senate and House of Representatives) will want to print & spend even more than the GOP. This is called “basic minimum income” (i.e. welfare for everybody) – it will be like getting a federal stimulus payment every single month, and at an increased rate. Not $1,200 or $600 in one shot, but more like $2,000 every single month (with like amounts for every child in the household). Case in point – Canada has been paying its citizens CAD $1,800 per month since March 2020.
The result will be hyperinflation of world record proportion or magnitude, even worse than seen during the fall of the former Soviet Union in 1991. This will likely be on par with the collapse of the former Yugoslavia in 1994 and the hyperinflation seen during the German Weimar Republic in 1923. The only worse cases of historical hyperinflation were seen in Hungary in 1946 (communist revolution), Mainland China in 1949 (Maoist revolution) and in Zimbabwe in 2008 (Mugabe dictatorship).
I am not joking when I say that the US Dollar will likely fall to zero and be entirely replaced with a limited supply of cryptocurrencies. This will likely make most people very poor and a few people very wealthy.
Artificial Intelligence (AI) will surpass all human intelligence on earth by 2023, and the future momentum of AI generated progress will only increase. AI will do its own future programming, and it will far outstrip anything which human beings can do on their own.
The Blockchain also includes autonomous driving, robotics and the creation of global mega-cities where the mass of the population (poor people) will reside. All brand new cars and trucks will be fully autonomous by 2024-2025. In the near future, far fewer private individuals will likely “own” cars. Car ownership will return to the way it was before the likes of the VW Beetle and the Model T Ford – only wealthy people will own private cars. Another big thing in the future is artificial meat – such as vegetable burgers and sausages. AI will also be behind the thrust to the renewed exploration of, colonization of, and exploitation of outer space. Blockchain AI will eventually be bigger than the Internet, e-commerce retailing, the PC revolution and social media COMBINED.
Cryptocurrency is our current opportunity to replicate the past investment success of past phenomena like Facebook, Instagram, Apple, Alphabet, Alibaba, Amazon, Netflix, Google, Tesla, Walmart and Target.
