By Lannie Brockstein.

October 16th, 2019

This is an open letter in reply to @pete's "Vienna A.I. and Blockchain Summit" post about the future of cryptocurrency, and which everybody else at Scorum is also welcome to read and reply to, should any of you like to do so, too.

Hey @pete, in today's "The National Post" newspaper, which is one of Canada's national newspapers, it published an article that is titled "Bank of Canada exploring digital currency that would replace cash, track how people spend money", and which is about how Canada is looking favourably towards developing a Canadian cryptocurrency that will eventually phase out its fiat currency. It also mentions that China is soon to release its own cryptocurrency, and that Facebook's Libra is likely to soon be released, too.

There is the argument that one of the key differences between "gold, silver, and cryptocurrencies", and "fiat currencies" is that additional dollars can be printed for fiat currencies, but that additional gold, silver, and cryptocoins cannot be added to the country's economy in order to bail out the banks and other "too big to fail" institutions, as was done during The Great Recession when the banks, car companies, and other companies received trillions of dollars in bailouts from newly printed fiat dollars.

But maybe it is possible for additional cryptocoins of any cryptocurrency to be printed, by means of it having a hardfork that includes the printing of additional cryptocoins for that cryptocurrency. If so, then that means cryptocurrencies can function as a hybrid of fiat on the one hand, and gold and silver on the other.

One of the benefits of any country using fiat is that in order for more money to enter its economy, it can simply be printed by the central bank, rather than by means of that country waging a war of aggression against another country to steal their gold and silver, in an attempt to add that foreign gold and silver to its own economy to bring liquidity back to its struggling economy that is struggling because its aging upper class has banked all of its gold and silver to live off of the passive income that its interest generates.

It is likely that the same way in which countries have already switched from gold to fiat, they will also switch from fiat to crypto.

What do you suppose it might mean for Bitcoin and altcoins when countries and corporations have themselves each announced they are going to be gradually switching from using fiat to using their own cryptocurrency?

Will there be a mass migration to Bitcoin and altcoins by those who do not trust their government and corporations not to delete their government cryptocoins and corporate cryptocoins? Is that really what we should be banking on?

When Canada legalized cannabis, it did not permit the illegal cannabis growers to become a part of the legal market. Likewise, when Canada has developed its own cryptocurrency to replace its fiat currency, it will probably not want for Bitcoin and altcoins in Canada to be used for anything other than "entertainment purposes only".

But perhaps you see things regarding Bitcoin and altcoins as turning out differently?