Now we know what Goldman Sachs has in mind for cryptocurrencies
Dear Steemitians
we are facing in a very wide bear period for cryptocurrencies, but this have a big reason and i will let you know why...
Last Tuesday Jeremy Allaire, the CEO of "Circle", the platform for digital currencies financed by Goldman-Sachs, revealed a project that if it will be realized will be a point of no return for US dominance in this market and the fact that the news comes from the CEO of Circle (so indirectly from Goldman-Sachs) shakes his wrists, as it is ambitious and lucidly strategic.
Tuesday's announcement reveals that Circle has just raised $ 110 million from Bitmain and other prominent partners to fund a project that will use the "Center" software as a tool to build a simple, yet decisive piece for controlling digital currencies .
This is the creation of a crypt completely linked to the value of the dollar with a 1: 1 exchange rate.
In practice, Circle wants to create a "Theter" that is not a scam, but really has a "peg" universally accepted, verified and shared with the dollar.
No wonder that such a disruptive project was funded by the co-CEO of Bitmain, that Jihan Wu who has never concealed his desire to create a serious alternative to the global banking system.
This "stablecoin" universal fixed to the dollar that avoids once and for all those continuous coming and going from fiat currency to cryptocurrencies would in fact be the lever of Archimedes that blows the whole system freeing investors from subjection to the fiat currency.
Think what would happen if this "stablecoin" were introduced into Cricle, Poloniex and other elements of the parallel financial system that Circle (ie Goldman-Sachs) is creating to dominate the entire crypto market.
But the design of Circle / Goldman-Sachs is not to create a closed system that investors should necessarily refer to in order to gain "freedom" from the fiat currency.
On the contrary, this "stablecoin" will be an "open source" system that all the exchanges and regulated platforms will be able to use.
Circle but '(ie Goldman-Sachs) will be the only official holder of this coin and all others will have to receive an authorization to use it.
In this way, Goldman-Sachs is creating the basis for becoming a fiat (digital) currency issuer with a power similar to that of a central bank ...
Everyone can use the dollar, but only the Federal Reserve is authorized to issue this currency.
Likewise, everyone will be able to use Circle's stablecoin, but only Circle will give the necessary permissions to do so ...
Also create this parallel financial system spread with as many actors and users as possible, provided that Goldman-Sachs keeps it firmly in hand ...
I do not see a more simple and elegant way to take possession of an entire economic system.
Many times (especially here) we have compared the differences with which Europe and the USA are proceeding in the development of the blockchain and the related economic system of cryptocurrencies.
United States, despite the ineptitude of their regulatory bodies, would have been able to make the system much more quickly than the Europeans, who also have now paved the way from the legal point of view.
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Holy ... that are some awesome news.
It depend from the point of view, anyway a regulation in this crypto scamming world is needed...:((
Haha after the first two paragraphs I also immediately thought of Tether. Just a try to get a huge junk of the cake as well. No wonder big banks are finally realizing they can't stop Cryptocurrencies so they try to get involved themselves. Implementation of this "stablecoin" will dependent of the still unknown regulations in many countries.
You are very wise my friend, i hope you are right about crypto, but why this market is so down?
In my opinion the rally we saw at end of 2017, the point where crypto became widely popular and many "investors" with literally no clue about the market entered the market, lead in my opinion to an overvaluing of nearly all Cryptos after the correction hit at the start of 2018 many scare sells lead to an even longer correction which is most likely still ongoing.
So you are with my same opinion finally that this market need somebody like Goldman Sachs who can give to people the safety that this is not a bubble, you know always newspaper write it...
It's like E-Coin from Mr. Robot coming true. Big banking is both the inception of and the downfall of crypto. Bitcoin was created to circumvent the banks and they laughed at it until they realized that it was working, and now they want to take over and control it by invading it. And for some reason people think that this is going to make them a lot of money because it'll legitimize crypto or something. If anything the banks will find ways to cheat us out of all of our money and take whatever profits we've made. There are people in the game who have the most sophisticated trading bots in the world. We're not going to be able to win against them.
Dear @malloryblythe, you are right, the banks want to keep control of our money and the crypto right now are over their control, but it is also true that crypto market is too related with fiat currency, when some whale exchange crypto in fiat, the market is going down, so what the difference? Most whales are bank which are playing with our money, because at first we put fiat to buy crypto with higher price, than they sell our investment and buy again when the market is down, but then your coins value is half. So the only way is that we do not use fiat anymore, so if there is a crypto dollar i think will be start of this change...
2 things i want to mention about your article.
Unfortunately this crypto world is full of scammer, there are small and big, in this case there are big scammers (whales) which are playing with pour people money, as you can see...
Scammers are everywhere. You have to be cautious with every decision that u make not just online but in real life too.
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I don't know about this. How are they gonna peg their coin to the dollar? Pay the difference in the actual market price with their stacks of cash? I don't think that's gonna work forever.
Exactly it's a difficult assessment.
Yes difficult but controlled by a very reliable authority...
also interested in this. Sounds like rich old money people scared of losing control over economics want to create a cryptocurrency that does exactly what the dollar does...
Yes my friend, they are wise and understand that crypto is business to be develop because cannot be destroy...
These are too big things for us, maybe you are right but we can just watch what will going on...
I disagree. We're already changing the world by using Steem right now. The crypto world is going to completely revamp the social and economic order of the planet. The big banks can play their games for now, but their time is borrowed.
Of course my friend we are all belonging Steem in this place, but the truth is that we need to be almost one billion in this place to have some power against those whales...:((
I think the key to crypto adoption especially with Steem is getting developing countries involved. Africa is already been huge in the development of the crypto world, and I already know there's an African community on Steem.
Yes my friend, but we Steem need fresh money feed to becoming strong, not only people...
To me, this stables currencies are actually breaking the rules of the blockchain which is decentralization because the price are no longer control by the community but controlled by a group of people or probably the government.
And trust me once the government is involved, anything could happen.
Basically you are right with the concept about blockchain, but in the truth what is going on? The people are scared to put money in this market because is not safe, so when you see Goldman Sachs involved, you have confirm this market is controlled by an authority and not from any gost whale...
One of the things I dislike about our current financial system is that the Federal Reserve is a private company that controls our money. They answer somewhat to the Treasury, but it is a centralized system. So now we are going to trade the Federal Reserve for Goldman-Sachs? Didn’t we have to bail their asses out recently so they wouldn’t go under due to their ineptitude? No thanks. I think that the percieved need for a stablecoin is a fleeting concern because we all still use fiat. Once we shed the use of the monoply money (pun intended) that we use now, stablecoins will be irrelevant. Look at how altcoins are traded now; in pairs with BTC or ETH or others. This is a harbinger of the future; we won’t need fiat or Stablecoins. Once the need for an on ramp is eliminated we are paid in crypto, the game changes. Thanks for the post @intellihandling; it got the gears grinding in the old brain!
Thank you for your very wise answer, i totally agree with you, but these things are too big for us and we can just watching what is going on....
That is true to some extent, but we have the power to not use the products we don’t like and to bolster the ones we do. Vote with our wallets so to speak. If its not profitable for Goldman-Sachs then the won’t do it. Grass roots movements are always more powerful then the establishment. We just have to band together. Lets not forget that the government rules because of the will of the people, and by that same token, businesses including banks exist because we allow them to. The unfettered will of the people can do extraordinary things!
I like your lion behaviour, but most of people are sheeps and following the owner...
You are correct; people have been conditioned to follow without question and without thought. They have forgotten how powerful they really are and how easy it is for them to improve their situation. Sweeping change happens when the people unite, but getting them there is the hard part.