The ‘Bitcoin Blueprint’ Goes Live
If you’re looking for consensus, I’ve got bad news for you: You’re not going to find it here at The Daily Reckoning Australia.
My colleague Jim Rickards is wary of the place the financial system finds itself right now.
I’m the complete opposite. I get more bullish every time I pick up the paper!
I told you the other day about some of the major real estate developments happening all over Australia.
We can add another one to the list. The men behind Melbourne’s Jam Factory have unveiled a refurbishment plan that will need at least $450 million in investment.
These types of projects just keep coming.
The benefits are enormous from the jobs they create.
In addition, The Australian Financial Review reports that ANZ Bank is pushing ahead aggressively in the mortgage market.
Apparently, it’s got the highest loan-to-income ratio of the banks, and is also marketing aggressively to win customers — including ‘sharp’ pricing on interest-only loans.
Lots of construction and credit sets the scene for an expanding economy.
The time to be in stocks is now.
The blockchain is flourishing in Dubai
Speaking of real estate, check this out. The land register in Dubai is saying it’s developing a register built o n the blockchain.
It’s part of a ‘sweeping plan’ to unite the relevant department and real estate services on a single platform.
It also gives foreign investors greater security when it comes to putting their money into the place.
Too right! One of the biggest risks worldwide is insecure property rights.
I’m not saying that about Dubai in particular. But you can see the potential for capital to flow into a lot of places currently considered a bit ‘iffy’ in that regard. I wonder if this can lessen sovereign risk in the future.
Now consider some of the stuff that’s happened in Africa — not to mention Western Australia — recently…
Governments have come in and attempted to change the conditions under which miners work.
One possibility with smart contracts is that the initial conditions would be in place at the beginning, and would be self-executing.
That’s not to say governments wouldn’t still try to snatch at the money — (we’re talking about politicians, after all) but one wonders whether it’s more problematic if, say, mining revenue was automatically distributed via the original code.
That’s a musing for another day perhaps.
Regardless, what’s happening now is further proof of how the blockchain will upend all sorts of current industries and processes.
Of course, just because the blockchain will continue to flourish, does not mean that’s true of all the current coins in the marketplace.
And there’s plenty of coins in the market now — over 1,100 in fact. I expect this number to double in the next few years as more start-ups bypass the traditional investment banks and raise money in the crypto market.
Finance has always had its con men, liars and thieves
One hilarious criticism of crypto is that it’s largely unregulated. Indeed it is. But I might add that I’ve seen quite a few initial coin offerings (ICOs) now that are only available to ‘sophisticated’ investors. In other words, the rich!
The average Joe — presumably the one the do-gooders are trying to protect — never has a chance of getting in on the action in the first place.
And by the way, financial history is littered with frauds, con men and liars. Did ‘regulation’ stop the dodgy loans in the United States before 2008? Did it stop the savings and loans disaster in the US housing cycle before that?
Charles Ponzi scammed US investors back in the 1920s.
Whenever you have large sums of money and potential for making money fast, you get scandals and unethical people — and fools. That’s inevitable.
It’s the old saying: Buyer beware.
The best thing you can do is educate yourself about the potential rewards versus the risks, and decide from there.
And by the way, considering the amount of money Australians pour down the drain via horse racing, casinos and poker machines, cryptos look practically benign.
But, oh, those are ‘OK’ because they’re ‘regulated’ and ‘legal’ — despite the odds being ridiculously against you in any of them.
I can only speak for myself. But I’d rather take my chances of a massive payoff in the crypto market than those.
And it’s not as if you should be betting the house or your retirement on crypto plays.
You can start with small stakes. In fact, you can start with just $5 if you like.
If it pays off, great. If it doesn’t, you’re prepared for that eventuality before you begin.
But even if you don’t put any cash to work in cryptocurrencies, you should at the very least understand the technology behind it.
Because not only is it incredibly exciting…it’s changing the world — and will run for years to come.
Editor, The Daily Reckoning Australia