The worldwide monetary system has actually fallen down three times in the past hundred years

In 1914, 1939, as well as 1971. Each collapse was followed by a duration of tumult: Battle, civil unrest, or significant damage to the security of the global economy. Now James Rickards, the acclaimed author of Currency Wars, reveals why one more failure is quickly approaching – and also why this moment, nothing much less compared to the establishment of money itself goes to danger.

The American dollar has actually been the worldwide reserve money because completion of the 2nd War of the nations. If the dollar neglects, the whole international financial system will fail with it. Nothing else currency has the deep, liquefied pools of properties had to get the job done.

Optimists have actually constantly claimed, essentially, that there’s nothing to stress aboutAc that self-confidence in the buck will never ever genuinely be trembled, regardless of just how high our public debt or how inefficient our federal government. Yet in the last couple of years, the threats have actually come to be too large to disregard.

While Washington is gridlocked as well as unable to make progress on our long-lasting troubles, our greatest financial competitorsAc China, Russia, as well as the oil producing nations of the Middle EastAc are doing every little thing feasible to finish U.S. financial hegemony. The prospective outcomes: Financial warfare. Deflation. Devaluation. Market collapse. Chaos.

Rickards provides a bracing analysis of these and other threats to the dollar. The essential trouble is that money and wide range have ended up being an increasing number of detached. Money is short-lived and ephemeral, and also it may quickly be worthless if main bankers as well as politicians continue on their present road. However true wealth is long-term and tangible, and also it has real worth worldwide.

The author demonstrates how everyday citizens which conserve and buying have come to be guinea pigs in the central lenders’ laboratory. The globe’s significant financial playersAc nationwide governments, huge banks, multilateral institutionsAc will certainly consistently muddle through by patching together new guidelines of the video game. The genuine victims of the next crisis will be little investors who presumed that what worked for decades will keep working.

Thankfully, it’s not far too late to prepare for the coming death of cash. Rickards clarifies the power of transforming unreliable cash into actual wealth: gold, land, fine art, and other lasting stores of value. As he writes: “The coming collapse of the dollar as well as the global monetary system is totally foreseeable … Just countries as well as people that make provision today will make it through the bedlam ahead.”.

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Halsey Minor’s Bitreserve

Halsey Minor

Halsey Minor’s Bitreserve Is Designed To Fix Bitcoin Volatility, But It Is Doing Much More

by Ian DeMartino @ 2014-11-21 09:40 PM

When I started writing for CoinTelegraph, Bitcoin was around $800. With my modest lifestyle and three roommates, that was enough for roughly six weeks worth of rent. Today, one Bitcoin wouldn’t cover one month’s rent. Luckily for me, CoinTelegraph pays in Bitcoin but bases the amount on its current USD value, but still, if it wasn’t already obviously apparent to me, I would have quickly learned that Bitcoin was not a safe place to hold money that might be needed for rent or bills.

Writing, contrary to what some may believe, is not a lucrative career. Sure, some people get wealth and accolades from it, but most aspiring writers fail to make ends meet either because they burn out or due to a lack of motivation, discipline or talent, and end up delivering pancakes at IHOP. While the former possibility would be nice, it is rare enough that success is usually measured by simply not falling into the later.

I mention all this not to evoke the writing faux pas of starting this article talking about myself, but to simply point out that I am Halsey Minor’s target audience with Bitreserve. If I kept the majority of my savings in Bitcoin, I would be at risk of losing half of my earnings and could easily find myself in the real life hell that is “Kids Eat Free” Tuesdays at IHOP.

Bitcoin evangelicals can scream all day that “one bitcoin equals one bitcoin” and that is how we should think of it, but when one bitcoin also equals either six weeks or less than three weeks of rent, the reality stands in stark contrast to the platitude.

Halsey Minor’s Bitreserve is meant to fix that. While I think most everyone would agree that Bitcoin is a betterinvestment than the dollar, a usable currency isn’t the same thing as an investment. Any sane Bitcoin advocate will tell people not to invest what they cannot afford to lose, but that ignores the huge number of people who aren’t in a position to invest anything. If the Bitcoin community wants the masses to get on board, it has to be financially viable for them to do so.

Bitreserve has many functions. Most of them are by design, but a few of the use cases companies coming up with using the open API surprised even the Bitreserve team. The main function though, the pillar that Minor is clearly most proud of, is the ability to let people use the Bitcoin network and all the advantages that entails, without having to deal with volatility.

When you sign up for Bitreserve, you are presented with six cards, five representing one of the major currencies Bitreserve supports and one representing Bitcoin. Users can deposit Bitcoin into any of the cards and Bitreserve will hold that amount of money in their system and its connecting, transparent “ReserveChain.” Every Dollar, Euro, Yen, Yuan or Pound held by users in the Bitreserve system is backed by real fiat held by Bitreserve. If they say you have $50, they actually have $50 set aside for you, and it can be tracked on the Bitreserve system. It isn’t loaned out to another user or invested in some risky derivative like it would be at a bank.

What this means is, someone like myself can hold dollars (or euros or whatever currency I want) on the Bitcoin network. I can send that amount of dollars, regardless of fluctuations in Bitcoin’s price, at any time through the Bitcoin network. Bitreserve simply sends the Bitcoin from their own reserves, then buys it back 20-30 seconds later with the money I spent. I tested it out on a merchant that uses Coinbase as its payment processor and noticed no major difference between Bitreserve’s transaction times and my normal wallets.

Ultimately, it is about the convenience of being able to use the Bitcoin network without having to make a currency conversion every time you do it, or having to worry about Bitcoin volatility when you have a significant amount of your disposable income in it.

“When I [go] to England, I do what just about everyone does, for the vast majority of purchases, I pull out a credit card and I don’t think ‘oh gosh, I’m going to swipe this and do a foreign currency exchange’ my bank just handles it for me. I keep money in the form I want, I keep it in my home currency and everybody has a home currency.”

If the majority of people are going to start using Bitcoin, they need a way to put a significant amount of money into it without worrying about it disappearing the next day. That is the advantage of holding money in the Bitreserve system.

“[I]f I hold a thousand dollars, and my rent is a thousand dollars, I don’t have to worry about being evicted because I held a thousand dollars.”

One could say that people should only put what they can afford to lose into the Bitcoin system, but that kind of barrier to entry does not lend itself to commerce for the vast majority of the population.

“There is a certain amount of elitism [in the Bitcoin community] that I’m not sure people are even aware of, that people around the world can afford to have money in a currency that goes down in value [quickly]. I mean, if you are a working mother of three and you are trying to raise your kids and you live on a budget [you can’t afford that]. Most people actually spend more than they make, and there is a sort of thing in Bitcoin that [people feel] like ‘well, that’s your problem, who cares if it goes up and down? You should use it anyway’ and it’s not practical. People do need the money they make.”

Bitreserve was born out of Minor’s own struggles with finances and financial institutions. His financial past is well documented and there is no reason to re-hash it at length here. But the short of it is he founded C|Net, one of the first profitable publicly traded businesses on the internet. He then was an early investor in SalesForce in 1999 and soon was worth billions. Some bad investments, and two bank failures later he was bankrupt in one of the tech world’s fastest and most public richest to rags stories.

While I do not know what Minor’s day-to-day life was at the time, I don’t know how comparable his struggles were to the struggles of “normal” people trying to make ends meet, it is clear to me, even in our relatively brief hour long conversation, that his fall from grace has a lot to do with what he is trying to accomplish with Bitreserve. Undoubtedly, Bitreserve is his comeback company, but it also seems like a personal crusade for him. While there are salacious stories about art addictions and other contributing factors, it is clear that he blames at least part of his financial issues on the banks, having one fail while they are building a hotel for you will do that and so it isn’t surprising to see him use Bitcoin as the rocket ship meant to return him to grace. He made millions by capitalizing when the Internet opened up media to the world, how much can he make as Bitcoin opens up the financial world in a similar way?

More than that though, it seems that his personal struggles made him realize how important a stable financial nest egg is. How the vast majority of people out there cannot afford to have their currency drop drastically in value, even if a rebound or massive spike is promised right around the corner. That is something he may have had trouble seeing, if he still had the kind of finances that make rumors of a fine art “addiction” possible. This is something that he is acutely aware of.

“I wouldn’t wish [my financial issues] on anybody and I wouldn’t wish it on myself. But in the end, that doesn’t mean it wasn’t extraordinarily valuable to me in some way. This company and many of its innovations are both a collection of things I learned along the way and stuff that I, being ‘billionaire Halsey Minor’  would have never been able to appreciate.”

But as it turns out, Bitreserve has more functions than just letting people use the Bitcoin network without worrying about volatility. Minor clearly has no love for the banks and doesn’t want Bitreserve to become one. To that end, they created the ReserveChain and BitLedger. This allows for complete transparency for users who have their money in the Bitreserve system. Essentially, they are extensions to the Bitcoin blockchain, letting users see how much money they hold, what currencies they hold it in, when they bought it and what exchange rate they got at the time. Eventually, as the reserve outpaces the liabilities, some of it will be invested in low-risk investments like government bonds. But again, users will be able to see exactly what security was bought, how much was paid for it, when it was bought and where it is presently.

This was designed to give Bitreserve users a way to know, unlike the customers of the banks that lost untold billions, what is going on with their money and not just build trust through transparency, but make trust an obsolete construct in the financial world.

It accomplishes that. But what it also has ended up doing is open up a whole slew of tools for companies using the API to make their companies transparent as well.

“We actually have some next generation exchanges. We provide transparency for them, they are able to show that they are holding either dollars or bitcoin inside of us [. . .] [F]or the first time [we] engineered a company whose business processes can be written out in real-time.”

Which could have implications beyond just Bitreserve and Bitcoin. Minor told me that over 100 fiat currencies are coming to Bitreserve over the next year, with the first of those set to roll out “very soon” according to Bitreserve’s press representative. This would enable companies, not just cryptocurrency companies, around the world to prove their reserve in an open and transparent way to their customers and investors.

“[O]ne company [that approached Bitreserve,] their business partners wanted to know (A) the money they are putting in is safe and (B) they want transparency [. . .] Investors are using sort of the albatross of the non-bitcoin system, everyone wants to see what is going on, and we actually provide that. No bank does that. There is no bank system for transparency. As it turns out, there are all kinds of businesses that actually want to have transparency as part of their business model.”

Ultimately, Minor hopes that this transparency will be adopted by more companies and will eventually “allow different kinds of financial systems to exist” based on the technology Bitreserve provides.

“This verifiable transparency will enable different kinds of business models than [exist] today.”

In regards to its use case in the real world, as I mentioned, I am pretty much the archetype of the market Bitreserve wants to hit: The person who is interested in Bitcoin and is tech savvy enough to understand it, but lacks the financial stability to go all-in on the currency while being able to sleep at night. I have already begun using Bitreserve, and I am able to keep more money right on the periphery of the Bitcoin market by storing it in fiat in the Bitreserve site. There I can keep my “maybe for savings, maybe for spending” money in dollars where I can feel safe about it, but can easily also use it to buy things with Bitcoin (and all the advantages that brings) or quickly invest it back into Bitcoin when I am feeling more bullish on the market. If an unexpected expense comes up, I can still quickly turn it back into Bitcoin and then sell it through Coinbase and Circle and pay rent or bills with it, but in the meantime, I don’t have to worry about it losing value and losing my meager savings.

I am pretty certain that in ten years $100 will be worth less than it is today, but I am more certain that money I save for rent now will still be enough for rent at the end of the month, that can’t be said for Bitcoin. Minor wants to make Bitcoin usable for people other than speculative investors and people willing to gamble on the price. These tools do make it possible, the only question is, will the advantages of Bitcoin, other than the speculative ones, be enough to tempt customers away from traditional financial institutions? Minor thinks so.

Halsey Minor is more than just an savvy investor who hit it big in the technology world. He was a pioneer in the internet space and was one of the first people to prove it could be profitable. Entering into the Bitcoin space, he says the similarities to the early internet days are impossible to ignore. I don’t normally quote at length but his comparison is worth reading in full.

“I have to tell you, this whole bitcoin thing is deja vu all over again. Everyone said ‘oh the internet is for porn’ and ‘oh credit cards are going to get stolen.’ It was just one bad [story after another]. Even in  ’98, the stories about eBay were ‘somebody is selling their kidney on eBay.’ It was one salacious thing after another.

The eBay thing was interesting because when that went nationwide, it was the best thing that happened to them because what it says is: no matter what you want to buy, even if it is a kidney, it is available on eBay.

So this has all the same kind of unsettling beginnings where  people are drawn to [certain things]. The reality was that the first business model on the internet was porn, but that doesn’t mean the internet was designed for porn, obviously. And while people may have used Bitcoin for illegal purposes, it isn’t designed for illegal purposes anymore so than the dollar, maybe less so.

It has the same trepidation and same kind of early negativity that the internet itself had, and it shares with the internet that same sort of notion of being indestructible. [With] the internet, no one can shut it down and no one can stop you from getting on it. With Bitcoin, basically no one can shut it down and no one can stop you from getting on it. And it is that same sort of indestructible nature that means it is something that is going to stick around and is something that is worth paying attention to.”

Minor was able to navigate the treacherous waters of the early internet market and its proceeding bubble and came out on top. As this market matures, regardless of the future success or failure of Bitreserve, it is worth paying attention to what he has to say. He left me with one final thought on the Internet and what it can teach us about Bitcoin.

“Cool stuff happens and you generally want to adopt it when it does”

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The international financial system has actually collapsed three times in the previous hundred years

In 1914, 1939, as well as 1971. Each failure was complied with by a duration of tumult: War, civil agitation, or substantial damages to the security of the worldwide economic situation. Now James Rickards, the acclaimed author of Currency Wars, reveals why another collapse is rapidly coming close to – and why this time, nothing much less compared to the institution of cash itself goes to risk.

The American buck has been the global reserve currency because completion of the Second World War. If the dollar fails, the whole international financial system will certainly fall short with it. Nothing else money has the deep, liquefied pools of assets needed to get the job done.

Optimists have constantly claimed, fundamentally, that there’s nothing to stress aboutAc that confidence in the dollar will never really be drunk, regardless of just how high our national debt or just how dysfunctional our federal government. Yet in the last couple of years, the threats have ended up being too huge to disregard.

While Washington is gridlocked and not able to make progress on our long-term issues, our greatest financial competitorsAc China, Russia, and the oil creating nations of the Middle EastAc are doing every little thing possible to end UNITED STATE financial hegemony. The possible outcomes: Financial warfare. Deflation. Hyperinflation. Market failure. Mayhem.

Rickards offers a bracing analysis of these and other risks to the dollar. The essential trouble is that cash and also wealth have come to be a growing number of separated. Money is short-lived and also ephemeral, and also it may soon wear if central bankers and politicians advance their present path. Yet real wide range is permanent as well as concrete, and also it has genuine value worldwide.

The author shows how day-to-day residents that save and spend have actually become guinea porkers in the main bankers’ research laboratory. The world’s significant financial playersAc nationwide federal governments, large banks, multilateral institutionsAc will certainly consistently survive by covering with each other brand-new guidelines of the game. The real targets of the next situation will be tiny investors which assumed that exactly what helped decades will keep working.

Thankfully, it’s not too late to get ready for the coming fatality of money. Rickards explains the power of transforming unreliable money right into actual wealth: gold, land, fine art, as well as various other long-lasting establishments of value. As he composes: “The coming collapse of the buck as well as the international financial system is completely direct … Only nations and also people that make regulation today will certainly endure the uproar to come.”.

Posted in Analysis | Leave a comment

The international financial system has broken down three times in the previous century

In 1914, 1939, and also 1971. Each failure was followed by a period of tumult: War, civil unrest, or significant issue to the stability of the international economic climate. Now James Rickards, the acclaimed writer of Currency Wars, reveals why an additional collapse is rapidly coming close to – and why this time, absolutely nothing much less compared to the institution of money itself is at danger.

The American buck has been the global reserve currency because the end of the Second World War. If the buck falls short, the whole worldwide monetary system will neglect with it. No other money has the deep, fluid pools of assets should get the job done.

Optimists have consistently stated, fundamentally, that there’s absolutely nothing to fret aboutAc that self-confidence in the dollar will certainly never ever really be shaken, despite exactly how high our national debt or how inefficient our federal government. Yet in the last couple of years, the dangers have become too huge to ignore.

While Washington is gridlocked as well as not able to make progress on our long-lasting problems, our most significant economic competitorsAc China, Russia, and also the oil producing nations of the Middle EastAc are doing everything possible to finish UNITED STATE monetary hegemony. The possible results: Financial warfare. Deflation. Hyperinflation. Market collapse. Turmoil.

Rickards supplies a bracing analysis of these as well as other risks to the dollar. The basic trouble is that money and also wealth have become a growing number of removed. Cash is transitory as well as ephemeral, as well as it might quickly wear if central bankers and politicians advance their current course. But true wide range is long-term and concrete, as well as it has real worth worldwide.

The writer shows how everyday people that save and also invest have come to be guinea pigs in the main bankers’ research laboratory. The globe’s major financial playersAc nationwide federal governments, large banks, multilateral institutionsAc will always muddle through by covering together new policies of the game. The genuine victims of the following dilemma will be tiny financiers which assumed that just what worked for decades will certainly keep functioning.

Fortunately, it’s not late to get ready for the coming fatality of cash. Rickards explains the power of converting unstable money into actual wide range: gold, land, fine art, and various other lasting shops of worth. As he creates: “The coming collapse of the dollar and also the global monetary system is completely foreseeable … Simply countries and people that make arrangement today will endure the uproar to come.”.

Posted in Analysis | Leave a comment

The global monetary system has collapsed 3 times in the previous century

In 1914, 1939, as well as 1971. Each failure was complied with by a duration of tumult: War, civil unrest, or considerable issue to the security of the global economic climate. Now James Rickards, the well-known author of Money Wars, reveals why an additional failure is quickly approaching – and why this moment, nothing less than the institution of money itself is at risk.

The American dollar has actually been the international reserve currency given that the end of the 2nd World War. If the buck fails, the whole international monetary system will fail with it. Nothing else money has the deep, liquefied swimming pools of properties needed to do the job.

Optimists have actually consistently said, in essence, that there’s absolutely nothing to worry aboutAc that self-confidence in the dollar will never ever absolutely be drunk, despite just how high our public debt or exactly how inefficient our government. However in the last couple of years, the threats have actually become also huge to ignore.

While Washington is gridlocked and also unable to act on our long-lasting problems, our largest economic competitorsAc China, Russia, and also the oil making nations of the Center EastAc are doing every little thing possible to end U.S. monetary hegemony. The potential results: Financial warfare. Deflation. Hyperinflation. Market collapse. Turmoil.

Rickards offers a bracing analysis of these as well as other hazards to the buck. The basic issue is that money and also wide range have actually become an increasing number of separated. Cash is transitory as well as ephemeral, as well as it could soon be worthless if main lenders as well as politicians advance their existing path. But real wide range is permanent as well as concrete, and it has actual worth worldwide.

The writer demonstrates how daily residents which conserve and also spend have come to be guinea pigs in the main lenders’ lab. The world’s significant financial playersAc nationwide governments, large bankings, multilateral institutionsAc will always survive by patching together new rules of the video game. The real victims of the following dilemma will be tiny financiers which presumed that what worked for decades will keep functioning.

The good news is, it’s not late to prepare for the coming fatality of money. Rickards explains the power of changing unstable cash into real wide range: gold, land, fine art, and also other long-term stores of value. As he writes: “The coming failure of the buck as well as the global financial system is totally foreseeable … Just countries and also people which make arrangement today will certainly endure the maelstrom ahead.”.

Posted in Analysis | Leave a comment

The international financial system has actually collapsed 3 times in the previous century

In 1914, 1939, and 1971. Each collapse was adhered to by a period of tumult: War, civil restlessness, or substantial harm to the security of the worldwide economic climate. Now James Rickards, the acclaimed author of Money Wars, reveals why an additional collapse is swiftly coming close to – and also why this time, absolutely nothing much less compared to the organization of money itself is at threat.

The American dollar has been the worldwide reserve money since the end of the 2nd World War. If the dollar falls short, the entire international monetary system will fall short with it. No other money has the deep, fluid pools of assets needed to do the job.

Optimists have actually constantly stated, in essence, that there’s nothing to worry aboutAc that self-confidence in the buck will certainly never ever absolutely be drunk, regardless of how high our public debt or exactly how dysfunctional our federal government. But in the last couple of years, the threats have come to be too large to dismiss.

While Washington is gridlocked and also unable to act on our long-lasting problems, our most significant financial competitorsAc China, Russia, as well as the oil generating nations of the Center EastAc are doing everything feasible to finish U.S. financial hegemony. The potential outcomes: Financial warfare. Deflation. Run-away inflation. Market failure. Chaos.

Rickards offers a supporting analysis of these and other dangers to the dollar. The essential problem is that cash as well as wealth have actually ended up being increasingly more detached. Money is transitory and also ephemeral, and also it could quickly be worthless if main lenders and politicians continue on their existing path. However true wide range is long-term and tangible, and it has real worth worldwide.

The author demonstrates how daily residents which conserve as well as buying have come to be guinea pigs in the main lenders’ research laboratory. The world’s significant monetary playersAc national governments, large banks, multilateral institutionsAc will always muddle through by covering with each other new regulations of the game. The real sufferers of the next crisis will certainly be small financiers which thought that just what worked for years will certainly keep functioning.

The good news is, it’s not late to plan for the coming fatality of money. Rickards explains the power of changing undependable money right into genuine wealth: gold, land, art, and also other lasting shops of worth. As he writes: “The coming collapse of the buck and the international financial system is entirely foreseeable … Just nations as well as people who make regulation today will survive the bedlam ahead.”.

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Posted in Analysis | Leave a comment

The international monetary system has collapsed 3 times in the previous hundred years

In 1914, 1939, as well as 1971. Each failure was complied with by a period of tumult: War, civil unrest, or substantial damage to the stability of the global economy. Now James Rickards, the well-known author of Currency Wars, reveals why one more collapse is rapidly coming close to – and why this time around, absolutely nothing much less than the organization of cash itself goes to threat.

The American buck has actually been the international reserve currency since completion of the 2nd World War. If the buck falls short, the whole global monetary system will certainly neglect with it. Nothing else currency has the deep, liquid pools of possessions needed to get the job done.

Optimists have actually consistently said, in essence, that there’s nothing to fret aboutAc that self-confidence in the dollar will never genuinely be drunk, regardless of just how high our public debt or how dysfunctional our federal government. However in the last couple of years, the risks have ended up being also large to dismiss.

While Washington is gridlocked and incapable to make progress on our long-lasting problems, our largest economic competitorsAc China, Russia, and the oil producing countries of the Center EastAc are doing every little thing feasible to end UNITED STATE monetary hegemony. The prospective results: Financial warfare. Deflation. Hyperinflation. Market collapse. Disorder.

Rickards provides a supporting analysis of these and other risks to the buck. The fundamental problem is that cash and wide range have ended up being more and more detached. Cash is transitory and ephemeral, and also it may quickly be worthless if main lenders and politicians continue on their present course. Yet real wealth is permanent as well as concrete, as well as it has actual worth worldwide.

The writer shows how day-to-day residents that save as well as spend have become guinea porkers in the main bankers’ lab. The globe’s significant financial playersAc national federal governments, huge financial institutions, multilateral institutionsAc will constantly muddle through by covering with each other new guidelines of the game. The actual targets of the next crisis will certainly be tiny financiers who presumed that what worked for years will certainly keep functioning.

The good news is, it’s not late to get ready for the coming fatality of money. Rickards clarifies the power of transforming undependable money right into real wealth: gold, land, art, as well as other long-term stores of value. As he writes: “The coming failure of the buck as well as the worldwide monetary system is totally not far off … Only nations and also people which make stipulation today will certainly make it through the maelstrom ahead.”.

Posted in Analysis | Leave a comment