The Decentralization Shift – Part 1

Why Digital Commodities (Virtual Currencies) will eclipse Fiat Money in the next decade.

Choosing bitcoins, businessman pressing touch screen button.

For the past hundred years, western governments have built their edifice on the notion of slavery. Keeping the populace subservient has been for them a simple matter of pushing the idea that debt gives us freedom to purchase “stuff” – whether that be a house, clothes, car etc.

The debt-trap has been a merry ruse for those at the top. Once hooked, individuals become enslaved to making the next payment, and then the next and the next. Not much freedom there.

At the same time, markets have been manipulated – a bull here, a bear there – helping the large corporations to fill their coffers at the expense of those who are not in-the-know. It has not been a very subtle approach, but when you offer a man a big loaf of bread instead of a small one, he’ll grab the big one 99% of the time even if he does not truly understand that paying “nothing now” means paying a lot more later.

But governments may just have over-reached themselves. Banks have been even more greedy than usual. Super-debt has spiralled out of control and an era of hyperinflation (or massive devaluation) is looming large.

At the same time, thanks largely to the internet, fiat money is being seen for what it is: a confidence trick no different to that played by the weavers in the fairy tale “The Emperor’s New Clothes”, and as Warren Buffet famously said: “When the tide goes out, we’ll see who has been swimming naked!”

The view from The Q is that self-sustaining, supportive economies will soon elbow those based on consumption and coercion out of the way.

Welcome to the world of Decentralization.

The world of Digital Commodities is a far cry from fiat banking. No central body can set interest rates. No secretariat can determine the value of one particular “currency” over another. Decentralization means that choices lie with each individual.

What’s more, no bank can hold onto your wire transfer for days whilst they make money trading with it at your expense. Send someone a bitcoin and it shows up in their wallet a nano-second later. That well-known delaying tactic “Your cheque is in the post!” cannot be used.

Nor is it possible to launder virtual currency in the same way as fiat money. The passage of a bitcoin is transparent. Decentralization, therefore, creates an environment of disclosure and honesty. Those who argue that the world of digital commodities is the world of the criminal underbelly are just pushing the mainstream line.

Of course, there will be ups and downs, plenty of them and whether Bitcoin, Ripple or any of the others will still be with us in a decade no one can say. But it’s our view that Digital Commodities are here to stay.

In the coming months, we’ll be looking at the advantages and pitfalls of investing in and using this new form of currency, introducing you along the way to people who have been involved from the very start of this quiet revolution and referring you to new sources of information, along with brokers who we know are genuine.

In the meantime, if you are not yet a member of QWealth, you might like to know that regular membership comes with a whole host of goodies, including an introductory report on Bitcoin. Bearing in mind this is still pretty much the “wild west” of the currency world, it will pay dividends to keep informed!

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1 thought on “The Decentralization Shift – Part 1”

  1. What’s backing these digital currencies? If my paper money is worthless for having no gold behind it, how can a digital currency that’s an electronic breath in computer circuitry have any value?

    Reply

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