Sunday, November 27, 2016

A fellow revolutionary

Chinese investor Chandler Guo, who has invested in various bitcoin and Ethereum Classic startups including major bitcoin mining pool, stated at the Annual Meeting of the New Champions in Tianjin China that the world GDP will be based on bitcoin.Since the introduction of bitcoin in early 2009, the global financial system and market have changed drastically. Banks have begun to implement negative interest rates, countries like India and China have started to impose strict regulations on asset management and the value of cash is beginning to fade away as central banks and governments are looking into the development of digital currencies.Guo states that like any technology or product, the world’s financial market and monetary systems are going through a major change. Existing financial networks, platforms and services are being replaced by financial technologies or fintech, and non-bank service providers have gained enough market share to challenge dominant organizations and institutions.
His point is simple.  Governments always screw up money flows and eventually Bitcoin becomes the global GDP measurement tool.  There is a separate debate that this is the major function of Bitcoin, and it should not be scaled to retail transactions.

In the end, who cares? Trading pits count, and count accurately and on time.  Whatever results, the general consensus is forced via the price mechanism.  

The likelihood is that trading pit overwhelms the Bitcoin block chain process as trading pit generates fractional bit error on every re-quant of the graph.  Or, in other words, trading pits will update world GDP every few seconds, Bitcoin would never keep up.  But, once we have universal smart card, then block chain is unnecessary,the Smart Card chain is secure.

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