BitCoin has received much hype from the techno-messianists, and in some special cases, such as in Argentina or Venezuela, it has been useful for normal people trying to survive.
However, outside of becoming a vehicle of speculation for degenerate gamblers, BitCoin has a far more serious and legitimate origin.
Problem: Tracking Cash
Terrorists need to move cash to finance their campaigns.
Paper currency is extremely difficult to trace.
Blockchain: Spinning the Yarn
There’s no way anyone hasn’t heard this stupid word, “BlockChain”.
BitCoin operates on a BlockChain, which continously updates a giant ledger that tracks all transactions and is used to then validate transactions. This means that each and every transaction has a trail, from the very beginning on to perpetuity, between each user’s public key.
Ok… Where’s the Scam?
Between hard-wired backdoors and firmware that allows tracking and hacking of any device made by any major industrialized country(US/EU/Japan/China/Russia/etc), the conceit that you can “anonymously” do anything proves woefully naive.
Through this backdoor, ALL BitCoin public keys are all tracked by competent governments. Hell, even the private keys are tracked.
Unless you design and build your own devices, your “anonymous” blockchain is actually a completely transparent record of every participant in a given conspiracy.
… and now… a Drone Strike
BitCoin has been used, successfully, by the US government to break many cells and reveal the identity of conspirators and terrorists.
This is increasingly becoming public knowledge, and all the smart terrorists know it.
This article would not be written, otherwise.
Alright… BitCoin is Useless for Anonymity…
Right: BitCoin is useless for “protecting” yourself from anyone who matters.
Low-level law enforcement, pathetic third-world regimes… they don’t matter.
BitCoin: A Suicide Machine for Degenerate Gamblers(aka Chinese)
Without any real anonymity, BitCoin is reduced to nothing more than a vehicle for raw, pure speculation, devoid of any inherent value or purpose (aside from suckering blithe terrorists).
Catalyst for the Terminal Crash?
We anticipate a military conflict in the Pacific, and this conflict would result in throttling and closure of much of the internet in China and Asia. While the disruptions to the internet would only prove temporary, it would fatally shake the credibility of BitCoin as a legitimate currency and vehicle for wealth preservation.
In fact, the smart money speculating in BitCoin would, the moment war seems imminent, begin cashing-out and taking substantial short positions in BitCoin (in this case, borrowing in RMB and paying back in BTC).
Short of the Year: BitCoin!
We nominate BitCoin the short of the year for 2017.