IMF Warns Bitcoin To Cause ‘Massive Disruptions’ To Centralized Banking
When Bitcoin was first released in 2009 by Satoshi Nakamoto, I am not sure that he (or them, depending on what theory you believe), would have ever conceived that Bitcoin would surpass both Morgan Stanley and Goldman Sachs in market value. But that’s exactly what just happened as Bitcoin’s currency price continues to approach $6,000. The total market capitalization for Bitcoin stands currently at $96.7 billion. At one point, it was pushing over $5,800 per digital coin (that was early this morning). It has since backed down slightly, but nothing out of the norm of typical and subtle fluctuations that would indicate it won’t reach $6,000 and beyond.
Bitcoin mania is now setting in as the currency is clearly mainstreaming itself. If you haven’t read my how to buy Bitcoin guide, I’d certainly consider doing such following this article. It is written for beginners wanting to gain exposure to Bitcoin.
The head of the International Monetary Fund is now warning that big financial institutions have dropped the ball by not taking Bitcoin seriously. IMF Managing Director Christine Lagarde said, “I think that we are about to see massive disruptions.”
“I think we should just be aware of not categorizing anything that has to do with digital currencies in those speculation, ponzi-like schemes,” she said. “It’s a lot more than that as well.”
Furthermore, Lagarde didn’t affirmatively exempt IMF from attempting to create a competitive digital currency.
“What we will be looking into is how this currency, the special drawing right, can actually use the technology to be more efficient and less costly,” she said.
So what’s really going on behind the scenes? China attempted to thwart the growth of Bitcoin by making the ICO funding an illegal practice. Russia is just, being Russia. Japan is now allowing it as a legitimate national currency. Lagarde was moderating a panel that hosted central bank officials when she made her comments. Central banks, of course, have to be in utter fear of Bitcoin’s rising growth.
Remember, global currencies are something that’s always appealed to globalists. It gives them a unique and simple ability to enslave the masses. The more that globalists can move to a central currency, the more than can subjugate the masses. However, the globalists and central banks don’t control Bitcoin. So could they create competition in the market? Maybe, but it isn’t going to be as easy as many statists like to believe.
Yes, Bitcoin is growing partly due to speculative reasonings and herd mentality, specifically, the fear of missing out. But the rise is also an indication that many seasoned investors believe that Bitcoin has a substantial place in the future of currency. This is something that central banks would love nothing more than to halt. But now, they have a problem. Call it the “Trump effect” if you like, investors and people, in general, aren’t allowing scare tactics, such as China’s anvil drop on Bitcoin, to dissuade their investment into the currency. If China is the model, central banks can assume that if the United States were to make an SEC based move, they could essentially drive the value of Bitcoin even higher into the currency atmosphere.
Rumors that Amazon could take on Bitcoin as a payment method are fueling Bitcoin growth (although many are dispelling these rumors as false). Two approaching hard forks, which for Coinbase users, would mean exposure to split off digital currencies, are also likely driving the price push. As well, Bitcoin, simply put, is exploding in popularity. It is now entering mainstream acceptance, or should I say, it is entering a phase that would allow it to gain acceptance into the mainstream. If central banks were ever to make a move, now would be the time, because as it stands, this will be the period of time that we look back on and view as the period of time that Bitcoin went from a conspiracy investors gamble to a risky, but acceptable means, of investing for the future. And beyond that, it can set up to become a very viable digital currency option.
So should you be investing in Bitcoin? If you have the money to lose, it is a worthy investment at this point. I wouldn’t put the house up as collateral, however, nor would I interrupt any retirement plans. But the future is arriving in short order. Any exposure, even small, is exposure worth having at this juncture. Please make sure you join our Prepper newsletter to get more stories like this, as well as news about prepping. Digital currency is definitely a prepper news items at this point. And it is an area that all preppers need to become more well-versed in as the future continues to unfold right before our very eyes.
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.
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