2017 and Beyond The Future of Cryptocurrency and Government Financial Regulations

Governments, banks and other large entities have all been murmuring, talking and hinting what the future of cryptocurrency could be or specifically the block chain. They all agree “blockchain” is good, there is no one against it but there has been a lot of confusion about the internet thinking this is equates to government and corporate backing of decentralized cryptocurrencies. I believe this couldn’t be the truth, in fact there have been lots of issues for companies exchanging cyrptocurrency for cold hard cash being unable to wire etc.

The excuse you hear from the big players are concern over fraud, money laundering, etc.. all of which happens in the current fiat monetary system. The true issue behind all the fuss is simply that these decentralized cryptocurrencies allow unhindered free trade around the world regardless of which country you are citizen of and where you are, no one can sanction you or freeze your assets in cryptocurrency. Further, it is of course a huge threat to the current financial system and governments around the world who depend on third party “reserve” banks to print their money. It’s bad news for their monopoly on finance and business transactions worldwide.

Bitcoin Exchanges in China are being shutdown: https://www.usatoday.com/story/money/2017/09/14/china-orders-bitcoin-exchanges-shut-down-report-says/665209001/
Russia says Bitcoin is illegal: https://www.reuters.com/article/us-russia-bitcoin/russian-authorities-say-bitcoin-illegal-idUSBREA1806620140209
Bitfinex sued Wells Fargo for blocking their wires: https://bravenewcoin.com/news/wells-fargo-sued-for-suspending-bitfinex-wire-transfers/
US SEC says they want to regulate coins: https://themerkle.com/sec-may-be-looking-for-ways-to-regulate-the-cryptocurrency-ico-market/
JP Morgan’s CEO Jamie Dimon calls Bitcoin a fraud: https://www.bloomberg.com/news/articles/2017-09-12/jpmorgan-s-ceo-says-he-d-fire-traders-who-bet-on-fraud-bitcoin

The part in China is most significant because the action in China has coincided with drops in value of the major currencies, as well as Chinese users doing a lot of mining and trading in crytocurrency.

When we take some examples above, this is the general consensus among bankers and government worldwide. They all like blockchain and want to make their own currencies that they control and centralize, but they are certainly against the decentralized ones and as new banking, taxation and other government intervention roles out surrounding cryptocurrency it will be very interesting to see where things head.

I personally think the decentralized currency will always exist and it can and will coincide with other mainstream offerings from banks and governments. There will be a place for both just as cash from other countries is traded for other items whether gold, silver or even electronics and oil. Trade will continue but through a different method of settlement and transfer.

One thing is for sure until we see how things break in terms of government regulations and how their own cryptocurrency’s play out, the value of the original decentralized currencies like Bitcoin, Litecoin, Etherum et al will have wild fluctuations as people react to news that threatens these currencies the same way people would read the news about Greece’s debt and haircut on the bonds they sold. In fact many watch the crypto market including the ICO (Initial Coin Offerings) and note they do seem to function as any other traditional market would in terms of news and advancements.

I believe we are seeing a financial revolution, all currency will soon be crypto and physical cash before we know it may all be stop being used.
The only question is how fast does it all happen and how does the difference between centralized banks and decentralized crypto users play out?

Decentralized Search Engines to Rival Google Based on Blockchain from Bitclave

I haven’t covered it in my blog here but many know the blockchain technology made popular by Bitcoin has other possibilities such as sharing data, files etc and one of the latest manifestations is the “Bitclave” project. The website doesn’t detail some of these things but here is what I gather and I apologize if it’s not 100%, but here is what I break it down as:

#1) Bitclave is a decentralized search engine based on blockchain technology.
#2) Bitclave has CAT which is it’s own cryptocurrency based off the same blockchain meant to be used as currency.
#3) Bitclave is unique in that unlike the current big search engines, they will not be freely selling your information to benefit unknown third parties.
#4) Bitclave is not only a decentralized search engine and currency but it also rewards you for engaging in particular offers if you want to buy a car or house, for engaging with particular companies and offers (even if you don’t buy) you are rewarded with some CAT currency.
#5) Your information is under your control and completely private so you can choose when and how to sell it for big money potentially to third parties.

I’m going to go into some of the pros and cons that I see.
Pros.
First and foremost this is an exciting project on its own due to the decentralized aspect of the search engine. It takes it one step further by giving the user control over their private search/marketing data and even lets them directly and profit in ways that are under their control.

It will also revolutionize business potentially if things are done this way under a mutual benefit between business and user. In fact if executed properly it could end or significantly change the internet business and search model as it exists now with the big engines and social sites.

Cons

However, the Bitclave team would still largely retain certain controls just as developers of any blockchain do which makes some aspects only as trustworthy as the team is capable and trustworthy for.

It is theoretically possible that the business model above could turn biased in a somewhat similar way that the mega search engines have done things, where the rules are constantly changing for the benefit of a few. However, this is not a likely thing in the near future since Bitclave needs to prove itself and gain trust to both users and business.

Another big concern, which is still a concern for the mega engines is how would spam, hateful, defamatory and other harmful material be handled? It is great to be free and decentralized but there needs to be some legal or other mechanism to prevent abuse of such a powerful search engine. It’s definitely worth checking out to see how things play out.

Conclusion
I am very excited about this project, it is more commercialized than I expected and could not be considered entirely open source or community based but I’m OK with it as long as it is executed as envisioned it will have a massive and positive impact on the internet which benefits the majority.

Good luck to the Bitclave team they could be making serious history in both blockchain, search and online commerce!