Three Ways Cryptocurrencies — Or At Least Bitcoin — Could Disappear Overnight

Bitcoin mania has taken over the world. However, the MIT Technology Review recently published an article that details three ways that Bitcoin could be easily made obsolete — and thus worthless.

The virtual currency traded for as much as $20,000 in December before falling back. It recently traded around $8,000.

The article, penned by Morgan Peck, is titled “Let’s Destroy Bitcoin.” He outlines three ways that Bitcoin could be “brought down.”

“While Bitcoin has established an economy in which it’s impossible to forge transactions, it provides no defense against replication of the idea itself,” Peck asserts.

“So how might a government, or a corporation, or even ordinary people, go about doing so in a way that makes Bitcoin useless or redundant?”

The first option involves a governmental takeover or usurpation of blockchain technology. Peck advocates the creation of a government-regulated cryptocurrency, perhaps one already being proposed by some former Federal Reserve members, called FedCoin.

The idea of a federally mandated crypto is based on the concept of cashless future economy, based on studies by researcher Sahil Gupta.

“I’d imagine people first get comfortable spending FedCoin on things like groceries and movie tickets,” said Gupta.

“As people realize it’s easier than cash, as businesses realize it’s cheaper than credit cards, and as banks realize it’s literally more secure, so goes the process by which dollars are phased out of the money supply and FedCoin phased in,” added Gupta.

The second option involves a social media giant like Facebook creating its own cryptocurrency.

Facebook touts over 3 billion regular users. It could reward users its signature crypto for advertisement interaction.

The company can also reward users with an ad-free experience in exchange for proxy mining of cryptocurrencies on users’ computers.

“If Facebook could persuade a large enough fraction of Bitcoin users and miners to run its own proprietary version of the Bitcoin software, the company would thereafter control the rules,” wrote Peck.

“It could then refashion Bitcoin as a corporate version of the FedCoin described above,” continued Peck.

Competitive coins

The third option to make Bitcoin obsolete is already happening: A massive influx of analogue cryptos crowding the market.

“Inside your phone’s digital wallet you find not only FedCoin and FacebookCoin but also AppleCash, ToyotaCash, and a coin specific to the store you’re standing in,” states Peck.

“There’s also a coin redeemable for babysitting services, and another that gets you rides on your local subway system,” he continues.

Peck concludes by stating that its up to people what happens to Bitcoin, citing its reputed creator, a shadowy figure named Satoshi Nakamoto.

“If cryptocurrencies are to be widely used, it will be the habits of the masses, not the wishes of Bitcoin’s early adopters, that determine what becomes of Satoshi Nakamoto’s vision.”

biden wins

What I’m Telling Investors to Do If Biden Wins the White House

The value of our Bulletproof Wealth Report model portfolio declined modestly over the past several trading days ending Sept. 27, while the Dow Jones Industrial Average fell by 822 points

Options: Meandering Market Tamed by Using a Straddle or a Strangle

When you hear talk of markets trending, people think of uptrends or downtrends. However, markets often get stuck in a trading range. This is the condition where there is no

Warning! Market ‘Death Cross’ Appears

A death cross! According to Investopedia: The death cross is a technical chart pattern indicating the potential for a major selloff. The death cross appears on a chart when a

5 Best Stocks to Buy If Trump Wins the Election

If President Donald Trump wins the election on November 3, 2020, you might want to consider adding these five equities positions to your portfolio: LMT, BAC, AMZN, XLE, TWTR. Why?

5 Best Stocks to Buy If Biden Wins the Election

If Vice President Joe Biden wins the election on November 3, 2020, you might want to consider adding these five equities positions to your portfolio: XLU, TSLA, XLV, MLM, and

TGIF — Ending the Week with a Whimper

Everything is proceeding as I have foreseen. In Monday's "The Week Ahead — 200,000 Deaths Weigh Heavily on the Market," we knew the 200,000th American death would put Covid back

Even If the Overall Market Continues Lower, This Staple Could Maintain Its Upward Trend

Since peaking in early September, the main indices have all three stumbled for the last few weeks with the S&P and Nasdaq falling over 10% from their highs already. Three

tesla stock

TSLA Too Volatile? Two Option Strategies for Tesla Stock

Tesla Inc. (TSLA) is one of the most popular stocks amongst investors. Led by CEO Elon Musk the electric vehicle manufacturer has disrupted the transportation industry, bringing hype to a

pot stock

Pot Stock ‘Blood in the Streets’ Buy Signal Is Here

The cannabis market has been a volatile space in recent years. A wave in legalization, particularly in Canada but also through parts of the United States, led to significant growth

Use Options as Portfolio Insurance in Rocky Times

Since the beginning of September we have seen the main U.S. indices drop. There are a number of possible reasons for the decline, but more importantly I expect the increased

4 Foreign Countries Where You Can Retire On Social Security Alone

Someone once said that retirement is not the end of the road but a highway opening to a new chapter in life. Whoever said that clearly has never experienced a

We’re Beating the Index Off the March Low: Update

The Bulletproof Wealth Report model portfolio is continuing to perform well and is now up 27.4% since the inception of our monthly newsletter on April 13, 2018. Although the value