CRYPTO CURRENCY VS DIGITAL DOLLAR
Banking adopting “Digital” currency.
While listening to one of the YouTube channels I follow, the speaker mentioned how multiple banks were totally against Crypto, how bad it is, and it needed to be banned. He then stated these same banks now think, maybe crypto isn’t bad after all. Now, they are creating their version of Crypto Currency which would be “digital dollars. The speaker further stated, “they don’t get it!”
What does this speaker mean by his statement: “they don’t get it!”
I was first introduced to Crypto Currency and Bitcoin a number of years ago. We, here at COMPUMATRIX were introduced by our founder Henry Banayat to not only Crypto Currency but also to the concept of Decentralization. This is the “piece” others do not get. This is what the speaker was referencing.
In her blog Crypto Currency and/or Paper Money, Inga Molin writes: “My mission will be to create noise in my country! A noise that gets people and businesses interested in connecting with me and starting their own business.”
CRYPTO CURRENCY VS DIGITAL DOLLAR
During the 2008 market crash, failing banks and financial corporations were bailed out of their financial struggles by the Government to the tune of 100’s of $$Billions$$ of dollars. The financial games finally caught up and it was a devastating nightmare. This was due to the system the financial markets run on.
After the crisis, nothing was changed and a precedent was set: “The Bigger You Are, You Can’t be Allowed to FAIL”. Here we are in 2020 and bail out as well as stimulus have been utilized to protect the economy. The problem however, still remains the same! The banking system is a CENTRALIZED system and the banks do not wish to lose control.
As the true issues show the weaknesses of our current banking system, banks are having a difficult time maintaining their financial system. Out of the ashes of the 2008 market crash came an alternative. This is called BITCOIN AND BLOCKCHAIN. This was introduced as a White Paper late 2008 and into 2009, it was running on computers all over.
When it began gaining popularity, it was met with negativity from the financial community. It went through the phases of denial to acceptance. Not to be outdone, the banks began plans to host trading and now they have started announcing plans of developing their own Crypto Currency that I will refer to as the Digital Dollar. (There are several proposals from various institutions.)
The banks thought they could shut down the trending toward Crypto Currencies with their negative campaigns. When this didn’t work, they sought out means to reproduce it in their system and therefore control. They stated their desire to embrace Blochchain but they still did not want Bitcoin. They are striving headfirst in their quest to provide THE DIGITAL DOLLAR.
Again, we address the meaning of what this YouTube speaker meant by his statement: “they don’t get it!” The fundamental aspect of Bitcoin and the Blockchain is it runs on a DECENTRALIZED format. By this, I am referring to the fact the Blockchain runs on thousands and thousands of computers throughout the World. There is NO CENTRALIZED AUTHORITY.
The DIGITAL DOLLAR concept is run under a CENTRALIZED AUTHORITY. This means it has a point of reference that can be accessed (therefore manipulated). With Bitcoin and the Blockchain system of DECENTRALIZATION, it can not be manipulated and therefore it can not be corrupted. The banking system has systematically destroyed themselves through tremendous greed.
The Banking system is only trying to change horses but THEY ARE IN THE SAME RACE.