“The future is here. It’s just not widely distributed yet.”
— William Gibson
“To be GOVERNED is to be at every operation, at every transaction noted, registered, counted, taxed, stamped, measured, numbered, assessed, licensed, authorized, admonished, prevented, forbidden, reformed, corrected, punished.”
— Pierre-Joseph Proudhoun
Coincentral has a new article by David Hamilton, on next generation smartphones dedicated to cryptocurrencies. You can read it here:
There are two contrasting streams at work with cryptocurrencies. In one, the lingering hangover from the 2008 crash (about to reach its 10 year anniversary and marked with useless protests) is propelling dystopian fever dreams of independence – independence from the corrupt system, and being prone to financial nervous breakdowns that are the traditional SOP of the “free market.” The dreamers believe that technology will be their salvation allowing them to profit from the system while remaining immune to its traditional habits of periodic collapse. This is the dream of the cool dystopia. It is Blade Runner without the violence and existential angst.
The second stream is the system belching in the face of the dreamers.
The Hamilton article is an examination of next generation smartphones with added layers of encryption specifically targeted at cryptocurrencies. It is also an advertisement for a future that is paradoxically, retrograde; a future whose moment has already arrived, been captured, and is just another product that’s dead on arrival. Of course the dreamers insist that’s not true. But they would say that, wouldn’t they?
Hamilton describes the nexus between cryptocurrencies and phones as follows:
“The telecommunications industry is undergoing the start of a blockchain revolution that has the potential to reshape the market for years to come. Analysts have long predicted the integration of these technologies. One study placed the level of future blockchain investment by telecommunications manufacturers at around $1 billion over the next five years. The majority of these future investment funds target the development of Dapps. Dapps are at the core of this blockchain telecom infusion. Additionally, phone manufacturers are now looking to blockchain technology as the answer to their aging infrastructures. Blockchain technology provides users with more security than the traditional methods used by the world’s telecom giants. After recognizing the possibility for improvement, firms are now looking towards this emerging tech to position their products in the digital economy.”
The idea is to offer phone with cryptocurrency wallets built into the phone. What follows in the article, are a few brief glosses on different phone and their features.
And take note of the traditional marketing patois – it’s a revolution that will generate profit for years to come.
Here’s a link to a look at the second stream:
From the article:
“NEW YORK (Reuters) – Two Wall Street regulators on Tuesday announced a series of actions, including levying fines, against companies involved with cryptocurrencies, in a flurry of activity reflecting efforts to monitor the popular and unregulated asset class.
“Securities regulators have intensified their scrutiny of the nascent asset class, noting that some tokens may be considered securities, which would make their issuance, sale and trading subject to federal laws.
U.S. Securities and Exchange Commission Chair Jay Clayton said in February he believed most of the sales of new tokens, known as initial coin offerings, should be considered securities. However, the SEC has not specifically classified which coins are securities.
A New York federal judge ruled on Tuesday that a case could proceed in which U.S. securities law was being used to prosecute fraud cases involving cryptocurrency offerings.”
In other words, Uncle Sugar, aka, the Federal Government, will eventually stop injecting itself with Trump heroin and get back to the business of taking your money and taxing you on what’s left. Cryptocurrency fever is, in the face of that unpleasant reality, like any other bubble.
If you’re making money the government will, like any other organized crime syndicate, demand its cut. It will if necessary change existing laws, or enact new ones but sooner or later it will regulate, tax, enforce, and profit from whatever you’re doing on its turf. Since it defines the whole planet as its turf, you will either pay up front through some sort of licensing or user fee, or pay when you exit in the form of taxes on income. Failure to accept their protection racket means a nice orange jumpsuit, and a multi year stay at one of their luxury accommodations – with three meals per day and an unobstructed view of the guard tower, the yard and the front gate.
Currently the cryptocurrency world is fairly unregulated – except for all of the countries that have made it illegal. It has about it the air of a William Gibson novel where culture is a commodity, and the most valuable commodity within culture is data. And any data from which you derive a profit will be taxed, controlled, defined, measured and taxed again.
Your cryptocurrency is a fad. It is like a gold mine in the Klondike a hundred and fifty years ago. You can dig, and buy and sell just as much as you want to but one way or another, you’re going to pay.
What endures is what alway endures – the government taking its cut.