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Blockchain is not New Technology, it's your everyday Ledger

December 4, 2019

Everyone is talking about blockchain technology these days as some sort of new frontier. Blockchain is just a verified balance sheet or type of ledger whereby valuable information becomes transparent and publicly recorded. No wonder Putin had a meeting with Vitalik Buterin who founded the Ethereum-coded currency. I think Putin wants his own digital currency backed by oil or natural gas, after all, why wouldn't he? It is the most efficient way for countries like North Korea, Venezuela, and Russia to circumvent sanctions and establish fiat currency. If blockchain's goal is to improve transparency and accountability in a supply chain, then the flow of information and high maintenance costs are susceptible to malicious actors or nations that want to hack it.

 

Everyone said that blockchain is immutable with no single node to change the transaction without gaining the support of the majority. This is complete non-sense based on authentication and verification because once the data is recorded, people believe it becomes impenetrable. However, with enough resources the most sophisticated nation will create pseudo identities to gain disproportionate control in the peer-to-peer network. Once malicious intent refuses to relay blocks, the communication from the networks is nullified. The more we mine these cryptocurrencies, the more our probability of being hacked increases.

 

Indeed, blockchain reminds me of a rather chilling episode from Star Trek. The Borg episodes relies on a collective framework called the Cortical Node that gives The Borg the ability to share the original collective thought of assimilation. The Borg's links are impenetrable because they adapt to technological changes in its environment. The Borg blockchain can not interact without the original Cortical Node that has to be verified by the collective mind even if it's false or delusional.

 

Blockchain does not have a global dispute resolution. Good luck if countries are able to scale blockchain to the point where it effects e-commerce consumers that have different laws, policies, and cultures. With blockchain and undoubtedly through China having their own cryptocurrency, they will achieve a deeper penetration in regards to international trade with their One Belt One Road project. That's why China's decision to crack down on cryptocurrency has been a logical move. Eventually, China's central command would outlaw purchasing bitcoins as a way to diminish bitcoin's net worth. This is also why China is telling its citizens not to attack blockchain.

 

China realizes that blockchain may be immutable, but they also know the problem of blockchain's single point of entry. If the single point of entry is wrong, then the collective mind will search to make it right as long as it becomes profitable for China. If a user forgets the password, then the data is lost. Encrypted ledgers simply do not add any value.

 

Bitcoin's claim of "decentralization" is largely a myth. The term was coined by pseudo-billionaires who control the cryptocurrency industry. Now that the truth behind these snake-oil salesmen is out, retail investors misled into buying cryptocurrency are displeased after seeing their wealth obliterated overnight. Ethereum creator Vitalik Buterin, already propagated the lie to the claim that "code is law", lying through his teeth that the software underpinning blockchain applications is immutable. Why is this? Because when an error occurs in one of the exchange's pseudo-contracts and massive hacking takes place, coders simply change the code and "fork" a failing coin into another one by an arbitrary fiat, therefore revealing the fraudulent enterprise that should have been deemed untrustworthy from the beginning.

 

If a multinational decides to use blockchain and the ledger becomes public and transparent, then it becomes easier for their competitors to work backwards and understand pricing and service. That's why China is gung-ho on blockchain, everything is transparent. Legitimate financial institutions will look at cryptocurrency as a pseudo-commodity and more suitable towards ETFs. Why own bitcoin and other cryptocurrencies and risk losing your entire investment? A cryptocurrency ETF will give you exposure without owning worthless coins.

 

I hate to use old-man Warren Buffett's quotes, but he hit it right on the head with this one. He stated, "Bitcoin is a delusion and attracts charlatans. There is no unique value in the world's largest cryptocurrency, it is a gambling device" Cryptocurrency's main argument towards Buffett is that if a crash comes into fruition because of the printing of money from national governments, then everything is lost. That is hog-wash. The world still needs electricity, still needs to be fed, and people still need to be paid. If the Dow Theory comes true, then the stock market will fall 25-40%, however following this the cycle simply restarts.

 

In terms of Bitcoin and other cryptocurrencies, just go on Facebook and look at these crooks waving multitudes of cash as an effort to entice the general public. What they're showing you is hard fiat currency, not coins. Worst of all, it's the misled investors' coins that they turn into fiat currency for themselves. If you go on LinkedIn, you see the same crooks when you search #bitcoin or #blockchain. It's a new frontier of fraudulent enterprises that want their yachts at the expense of the everyday human. You can not put a coin in your mouth and eat it because the next day the coin would be worth substantially less. You don't want to go hungry all week.

 

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