Shift in the Financial System
A Global “Cryptoquake”
The biggest crisis
in history is coming and we know what to do.
HISTORY
History already knows precedents for changing the financial system. This happened 600 years ago in Europe. In January 1345, as a result of the refusal of King Edward of England to pay his debt, the largest trading houses in Europe, Bardi and Peruzzi, went bankrupt. The chain of defaults spread throughout Europe – even the Papal Curia declared default. The event led to the collapse of the gold florin. The next 150 years are known to us as the “Late Middle Ages” or “Dark Ages”.
Today we have a similar situation. The bankrupt Edward of England is the Federal Reserve, and the trading houses are banks and states. The Fed planned to fight creditors by rebuilding the whole world according to a new scheme, using the PSD2 directive and technology companies. And although the project is clearly failing, PSD2 will still be there, which is why bankers are looking to the future with growing concern.
The difference from the situation 600 years ago is that we have cryptocurrencies that DO NOT have a single centre of issue.
EXPONENTIAL
As I think everyone already knows, fiat is flowing into crypto. The chart of the capitalization of cryptocurrencies has the shape of almost an exponential. Judging by the unexpectedly quick reaction of states, they realized the threat. Since governments are joining the race for a piece of the printing press on an equal footing with everyone else, it is clear that central banks will have to forget about the concept of a “key rate”. Money for states, and it does NOT matter whether it is pegged to the dollar or not, is more NOT free. Governments are in a panic. Bankers are in a panic twice. There is a rush in the market for miners.
SAVING CAPITAL
Imposing free issue on the already obvious refusal of attempts to ban crypto, we have a situation where ordinary people, banks, states and even the Fed itself are in an equally difficult situation. But, if an ordinary person can simply buy Bitcoin, then a quick exit into crypto for too large capital is simply impossible – you can’t buy such an amount of crypto at a time without a collapse in quotations. Thus, we are no longer talking about increasing capital, but about saving it. Our clients are bankers and states.
Further, we proceed from the impossibility of assessing the behaviour of capital that has gone mad. And capital is truly insane, because now it is driven by wild profits and the fear of extinction at the same time. In such conditions, it is necessary to consider all scenarios, including extreme ones. There is a small chance that fiat will flow into crypto faster than in a year or even all. But the average forecast time for analysts is somewhere in the region of 2019-2020.
SOLUTION
An exemplary team based on a super data centre is building a pump for an hourglass to force the pumping of capital into crypto. The components of the pump are all businesses implemented on the basis of the data centre. Clients are banks and governments. Such pumps will allow our clients to have time to transfer as much money as possible to crypto before the singularity point of the financial world. We need to scale up as quickly as possible, otherwise, we may miss the peak.
FUTURE
Of course, we cannot say how such a singular crisis will end “in general”. And DO NOT listen to analysts who predict what will happen “after”. It is impossible to look beyond the singularity point – that’s why it is a singularity. We can only prepare as much as possible for the coming upheavals.
Alexey Zarin
Moscow, 2017
