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bitcoin is Dead: Part 4

bitcoin is Dead: Part 4

Click here for Part 3

For the audio version, check out my podcast A Boy Named Pseu where you can download it on all podcast platforms. (read starts at 8:54)

Read full piece here.

If bitcoin is dead, then Nigerians aren’t living off it

Bitcoin is empowering the dominant medium of exchange to the masses in West Africa. How? Gift cards.

The digital asset exchange, Paxful, is outcompeting other Western exchanges by enabling thousands in West Africa (Nigerians in particular) to buy gift cards for remittance, which accounts for two-thirds of the exchange’s USD volume.

In the article “Bitcoin and Gift Cards Are Powering a Million Dollar Remittance Market in Africa,” Bitcoin Magazine’s Colin Harper revealed the following:

  • “Paxful is able to onboard financially disconnected citizens of developing countries on a level that non-P2P [over-the-counter] exchanges like Coinbase simply cannot…Paxful services trades in more than 70 currencies around the world and has made much of its traction in geographic regions that many bigger exchanges have not.”
  • Nigerians account for likely 50 percent or more of Paxful users who trade gift cards.
  • of the roughly $65 million in gift card trades processed through Paxful in October 2019, $32.5 million of them came from Nigerians.

How exactly does this work? Harper explains:

“an African immigrant will purchase gift cards out of the country (typically from the U.S.) for cash; they will send a picture of this gift card and proof of purchase to a friend or family member back home; the recipient makes a trade on Paxful, selling the gift card (typically at a discount) for bitcoin; they then take this bitcoin and trade it for their local currency and transfer this into their bank account.”

This right here proves that third world countries recognize bitcoin as actual money and that its value is legit. These people would do away with their native currency for bitcoin any day because they have lost faith in fiat.

The spirit of bitcoin is working through the people who need it most, and also works through the markets (companies/industries like start ups or exchanges) to provide the needed bitcoin. It’s a fly-wheel that keeps spinning via the momentum of supply and demand, and shows no sign of pumping the breaks any time soon.

But, you know. Bitcoin is dead.

War At Dusk?

Trump’s emergency war cabinet meeting after the Iranian rocket attack was strangely anti-climatic.  Trump has engaged in non-substantive, face-saving military actions in the past, so maybe this is more of the same?  Iran and Trump playing an escalation game to its limits, but neither really having the balls to risk a real thing?  I hope that’s it.

Somehow, however, I wonder if this is the “calm before the storm.”  Usually, Trump obscures empty gestures with big rhetoric.  His rhetoric tonight is oddly measured.

There’s a real possibility that each side here is buying time and keeping a weak face while hard assets are positioned.  The fate of American hegemony could be at stake.  If Hormuz is closed for a short amount of time and the region can’t be stabilized or reoccupied any time soon, the fragile US economy could pop.  All you need is a week or two of wealth flowing from one set of assets into another, causing the pressure of the plumbing to drop, and the pipes to all collapse.  A sustained flight from stocks into gold, or something like that.  Long enough to break the machinery keeping the fake economy afloat.

There are rumors of Germany fleeing NATO’s boot to Putin’s Eurasian arms.  There are even rumors of Israel buddying up to China.  This is all hyperbolic, even unrealistic, but the point is that the current situation’s optics are as strategically important as anything else.  One or the other narrative will become “history” as the players in the middle pick their ultimate sides, and one side wins.

Both sides will claim the desire to avoid war until one or the other side makes the war happen.  Iran’s strategy would be simply to bait idiot Trump into an arrogant move which will surely punish Iran immensely, but be the perfect excuse to cripple the dying US empire.  A Shia “Samson option”.  Remember how happy Bin Laden was that Bush was elected?  Islam is a culture with a perceived historic destiny, and they think in terms of historic trends.  If there’s a war I think this will be the bad one.

Horrifically, I think Trump’s cabinet could have already picked the time of attack – which always starts just after dusk for tactical advantage.  It’s morning now in Iran, and Washington, D.C. is sleeping. Dawn was just breaking over there when Trump’s war council convened, and a public address was tentatively announced.  Then Trump delayed his big speech until his next morning.  What if they realized that the attack would have to wait about 10 hours before beginning?  What if the last words of the war council were, “Well, everyone go and get some sleep, it will be the last time anyone around here will be getting sleep any time soon.”

The speech has to start after the attack is well underway.

This may be the most plausible explanation of the admin’s odd silence.

Or, maybe they realized how badly they messed up and are finally playing it cool.  And we can get back to impeachment and Biden gaffes.

I hope by the time y’all in the states wake up we’ll all know that the situation has blown over.  I hope by the time most of you read this blogpost, it will already be irrelevant.  I hope.

 

Was Kataib Hezbollah Even Responsible For That Rocket Attack?

They denied it.

Scott Ritter wonders whether what’s-left-of-ISIS is jerking our chain:

The U.S. blamed Iranian-backed Khaitab Hezbollah (no relation to the Lebanese Hezbollah group), for the attacks.

There are several problems with this narrative, first and foremost being that the bases bombed were reportedly more than 500 kilometers removed from the military base where the civilian contractor had been killed. The Iraqi units housed at the bombed facilities, including Khaitab Hezbollah, were engaged, reportedly, in active combat operations against ISIS remnants operating in both Iraq and Syria. This calls into question whether they would be involved in an attack against an American target. In fact, given the recent resurgence of ISIS, it is entirely possible that ISIS was responsible for the attack on the U.S. base, creating a scenario where the U.S. served as the de facto air force for ISIS by striking Iraqi forces engaged in anti-ISIS combat operations.

No doubt, the only person in the world who wants to see regime change in Iran as much as Benjamin Netanyahu is Ayman al Zawahiri.

Update: Via Gareth in TAC, the NYT reported then, “It was not clear who was responsible for the attack. American forces in Iraq have been threatened by both Iranian-backed militias and the remnants of the Islamic State.”

Iran Hits US Targets in Iraq

About that Air Base in Iraq

After the Iraqi parliament (sans Sunni and Kurdish members) voted to oust US troops from Iraq, Trump said, “We will charge them sanctions like they’ve never seen before, ever. It’ll make Iranian sanctions look somewhat tame. We have a very extraordinarily expensive air base that’s there. It cost billions of dollars to build. We’re not leaving unless they pay us back for it.”

Trump threatens economic warfare as casually as other people announce their intention to go shopping. We couldn’t count the number of times he’s done so. At any rate, it seems like a strange way to treat a presumed friend that the US government created. What’s a few more miserable Arabs anyway?

As for demanding money “back” for the airbase, that is even more bizarre. The US government didn’t buy the base for the Iraqis; it was for the American power elite and military-industrial complex. Were Iraqis free to reject it when the base was first proposed? The US government made a risky “entrepreneurial” decision when it built the base, so if access is denied, well, tough luck. It was an “investment” gone bad. You know about such things, don’t you, Mr. Trump?

bitcoin is Dead: Part 3

bitcoin is Dead: Part 3

Click here for Part 2

For the audio version, check out my podcast A Boy Named Pseu where you can download it on all podcast platforms. (read starts at 8:54)

Read full piece here.

If bitcoin is dead, then the President didn’t tweet about it

Governments have officially recognized bitcoin as a threat to the modern financial system. In an article from The Daily HODL, Congressmen, French Hill and Bill Foster, wrote a letter in September urging the Fed to “consider creating a national digital currency as the rise of crypto and projects like Facebook’s Libra threaten paper money.”

The open letter revealed the following

  • Belief that the US dollar risks getting left behind as digitization sweeps the globe and governments around the world move to modernize their monetary systems and reinvent how they transfer, distribute and create money.
  • concerns about the status of today’s US dollar, a decidedly old instrument that is one stop in a long line of early colonial currency and paper money known as Continental currency that was first issued by Congress roughly 240 years ago.
  • governments are facing the emergence of a massive project that can scale instantly, that can cross borders without banks and onboard a built-in userbase of billions to send money around the globe as easily as email (AKA bitcoin)
  • The revelations are forcing lawmakers to rethink how to tackle the threat to the US dollar. Instead of assuming that the technologies underpinning digital assets will suddenly disappear
  • many are devising plans to create competitive products to mitigate the risks of obsolescence or significant loss of leverage of traditional currencies.

To this last point, it’s inevitable that their efforts fall short. The whole point of bitcoin is to be decentralized and free from a trusted, single point of failure. While having the feds run a digital currency of their own, (to quote Hillary Clinton), “what difference does it make?”

Truthfully, there’s literally no difference because it’s not backed by a hard currency, which is why Satoshi Nakamoto created bitcoin in the first place.Unless they decide to back fiat by a crypto hard cap, we’d all be suckers to take them at their word of proposing such a solution.

Unfortunately, such news didn’t get as viral as a tweet from everyone’s favorite tangerine. The President of the United States of America himself, Donald J. Trump, tweeted that he was not a fan of bitcoin. Even if Trump doesn’t fully understand how bitcoin works, he understands well enough that bitcoin would threaten his monetary policy of keeping interest rates low and continuing trade wars with China.

However, what Trump did/didn’t say about bitcoin or how he said it is irrelevant. His tweet is a prime example of the Streisand effect, the phenomenon whereby an attempt to hide, remove, or censor a piece of information has the unintended consequence of publicizing the information more widely. The point is, if bitcoin wasn’t on your radar, it is now.

No doubt the average Joe started talking or thinking about bitcoin, even if they had no idea what it was. Regardless, now grandma and the whole world knows of its existence.

But, you know. Bitcoin is dead.

Will Iran Choose 1,953 Sites?

Trump tweets that he has selected 52 sites in Iran, including cultural sites, for bombing if the Iranian regime retaliates for Trump’s assassination of Quds Force commander Qassem Soleimani. Why 52? That “represent[s] the 52 American hostages taken by Iran many years ago,” Trump noted.

I wonder if that will prompt Iran to select 1,953 American targets for its own retaliation. After all, 1953 was the year that the CIA carried out a coup in Iran, overthrowing a democratically elected prime minister and reinstalling the brutal monarch (shah) Mohammad Reza Pahlavi and his feared Israeli-trained secret police, the SAVAK. The hostage-taking, which lasted 444 days, occurred after the 1979 revolution in Iran, which drove the hated shah from power and established the Islamic Republic of Iran.

As for the reference to targeting cultural sites, this was Trump at his pettiest. Imagine destroying the symbols of ancient Persian civilization just for spite! It brought outcries from around the world, and even the US secretary of defense said those sites would not be touched.

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