…Bitcoin (and all the other 800+ cryptocurrencies being used worldwide) is really an inner (metaphysical) currency…and the image I witness within my computer screen is virtual/imaginary. The unit has no outer existence (as a paper note or a silver coin). I can not exchange the unit from my hand to yours. I transfer this unit within my inner mind (consciousness) and accept its legitimacy as valid because I can use math and numbers to create a ‘value’ for this unit (as of today). [This all begs answers to a number of questions:]
- …Could this metaphysical/virtual currency have any validity as a stand alone currency?
- Could we eliminate the official fiat dollar (for example) and still consider this currency valid for international trade?
- What gives this Bitcoin image its ‘value’ in the marketplace now?
- I can transfer the unit from person to person, but what happens when I desire to ‘spend’ this unit for goods/services?
- Don’t I need to convert the unit (Bitcoin) to dollars prior to spending?
- So what good is Bitcoin as a replacement currency for one of our official currencies (or all of them)?
- Where would this virtual image currency get its ‘value’?
- Let’s assume that we eliminate ALL official governmental currencies via a reset. Now let’s implement Bitcoin (or an equivalent) as the new currency. Could this virtual image within the computer screen work as a unit of ‘value’ for trade?
- Who (which counterparties) would desire a ‘virtual’ image in the computer screen as a unit of ‘value’ for oil, wheat, consumer products, or automobiles?
- How could it be ‘valued’ given that all official currencies are eliminated/abolished (say via a reset)?
I don’t think anyone with economic common sense would desire this virtual image as an exchange for real production (autos, steel, oil, grains, etc.). Think on this!
Now let’s briefly think on the issue of our official fiat digital currencies ($, euro, pound, krona, yen, etc.). These currencies are also digital images (virtual) within our computer screens (for the most part). Some 95% of all money transactions are now done digitally and via computers. These virtual units get created by a decision (a human being with consciousness). The $ (for example) gets typed into the computer screen and then is declared official legal tender. There is no ‘tie’ of this unit ($) to anything material (like silver or gold). This makes this unit an image ($) in the computer screen created from consciousness. Think on this!
- What is an image ($) in the computer screen created from consciousness?
- Does it have any material existence within our real-time markets?
- Does it ‘exist’ as a unit of matter/energy? If not, what is it (in reality)?
- Would it not be a metaphysical unit of the mind?
- Would it not be a non-material unit?
- Would it not be a subjective unit?
- Does this type of money unit ($$$$$), mere numbers within the computer screen, have any ‘value’ or long-term sustainability as a price discovery mechanism? The unit enters our markets surreptitiously via a bankers stroke of the computer key. This makes it subjective and an ‘invented’ unit with no outer ‘value’. Think on this!
Today, we have a global electronic/digital currency system which consists of cryptocurrencies and official currencies. Both of these currency types are mere images within the computer screen (inner units of consciousness).
- Can inner units of consciousness (mere mental abstractions/virtual images) work longer term for trade and a store of value?
- What happens when our markets finally decline precipitously and meaningfully (a serious 20-30% correction)?
- Do not all these currencies disappear back into our consciousness?
- Value certainly disappears as asset prices decline…so what gives any of our digital currencies stability during a serious downturn? Think on this!
I think we need to start thinking about a serious correction within all our bubble markets. This will happen at some point down the road.
- When this happens, what survives as a ‘store of value’?
- Can images of the mind (all our current digital currencies) survive/exist during this value collapse process? I don’t think so! All these metaphysical currencies (we could also say ‘spiritual’ currencies) will vanish and disappear during this major crash event within our electronic markets! Digital money is worthless after this next major crash event!
- Can anyone go into their inner consciousness/mind and fetch this assumed ‘store of value’?
Think on this!
What is now happening within all our markets is similar to the Tulip Bubble markets back in the 1600’s. Traders, investors, speculators are using mere mental abstractions/virtual images to pump up all our bubble markets with math/numbers. This is perceived as ‘making money’ for all these persons but will these deceived persons understand what happened when our markets finally correct (significantly)…say 20-30% or more?
My sense is that most investors and traders today are grossly deceived about the nature of reality. REALITY will prevail eventually! Isn’t it time to get REAL? I am.
The above comments are an edited and abridged synopsis of an article by Donald Swenson
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