Tags: steve forbes | cryptocurrency | government | money | bitcoin

Steve Forbes: Cryptocurrencies Will Save Us From Government Money

By    |   Wednesday, 12 September 2018 01:23 PM

Investment guru Steve Forbes predicts that once all the wrinkles are ironed out, cryptocurrencies will free all us from the shackles of government financial oppression.

“The rise of cryptocurrencies is a high-tech cry for help against the unstable monies that we've had for decades from all governments around the world,” Forbes told Naomi Brockwell on YouTube.

Bitcoin is the most popular cryptocurrency. Virtual currencies can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government. 

Forbes admits there has been volatility in the cryptocurrency world. However, the chairman and editor-in-chief of Forbes Media is optimistic all will work out if given time and patience.

“The thing to keep in mind on new things, whether it's blockchain or cryptocurrencies, is they always have a very messy start. It never emerges full scale. It goes through often painful evolution but eventually it clicks,” said Forbes, a Republican candidate in the 1996 and 2000 presidential primaries.

“I think one of the things that advocates of cryptocurrencies have to learn is what makes money useful is what makes it valuable. It's trust,” he said.

“In terms of the cryptocurrencies, you have to figure out how do you make this thing easy to use, reliable and trustworthy,” he said. “They've got to come up with a way to make it stable that people can trust it,” he said.

"These things take time to evolve," Forbes said. "But they haven't done it right yet. The very fact that bitcoin is all over the place. Steak one day, dog food the next shows they're not there yet,” he said in reference to price volatility in digital currencies.

Bitcoin had rocketed to a record high of $16,000 in December. Several small U.S. firms reshaped their business models to capitalize on the craze for blockchain technology, which supports cryptocurrency, Reuters has reported. On the Luxembourg-based Bitstamp exchange (BTC=BTSP) bitcoin was trading at about $6301.69 late Wednesday.

"It eventually will be done," he said of virtual currencies becoming mainstream, less volatile and more reliable.

However, regulators across the world have been intensifying their scrutiny of initial coin offerings (ICOs) and cryptocurrency exchanges. Last year, the U.S. Securities and Exchange Commission warned that some of the coins issued in ICOs could be considered securities, implying that trading them would have to comply with federal securities laws.

Governments “fooling around with money hurts people, corrupts society and leads to political instability,” he said, citing recent financial chaos in Brazil and Argentina.

“Money should be a measurement the way a ruler measures space, a scale measures weight, a clock measures time. Money measures value, so it makes it easier to buy and sell,” he said.

“When money does not measure value accurately, it's like a virus and a computer corrupts the information,” he said.

“So if you want prosperity, if you want people who have very little in life to have a chance to better their lives and find jobs that meet their particular talents, then you need stable money. And when you have stable money, you get growth and prosperity and innovation. If you don't have stable money you get stagnation," he said.

Forbes says despite “some scandals,” eventually cryptocurrencies will become stable and easy to use, winning the hearts, minds and wallets of global consumers.

“That's going to force the governments to get their act together. They'll try to destroy it with regulation. ICOs will try to be destroyed by the Securities and Exchange Commission, they'll try to crush these things. I think ultimately entrepreneurship will triumph and overwhelm the regulatory state.”

However, virtual currencies plumbed new depths on Wednesday, Bloomberg reported. The MVIS CryptoCompare Digital Assets 10 Index extended its collapse from a January high to 80 percent. The tumble has now surpassed the Nasdaq Composite Index’s 78 percent peak-to-trough decline after the dot-com bubble burst in 2000.

Like their predecessors during the Internet-stock boom almost two decades ago, cryptocurrency investors who bet big on a seemingly revolutionary technology are suffering a painful reality check, particularly those in many secondary tokens, so-called alt-coins.

“It just shows what a massive, speculative bubble the whole crypto thing was -- as many of us at the time warned,” said Neil Wilson, chief market analyst in London for Markets.com, a foreign-exchange trading platform. “It’s a very likely a winner takes all market -- Bitcoin currently most likely.”

Wednesday’s losses were led by Ether, the second-largest virtual currency. It fell 6 percent to $171.15 at 7:50 a.m. in New York, extending this month’s retreat to 40 percent. The MVIS CryptoCompare index fell 3.8 percent. The value of all virtual currencies tracked by CoinMarketCap.com sank to $187 billion, a 10-month low.

Material from Bloomberg and Reuters were used in this report.

© 2018 Newsmax Finance. All rights reserved.

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“The rise of cryptocurrencies is a high-tech cry for help against the unstable monies that we've had for decades from all governments around the world,” Steve Forbes told Naomi Brockwell on YouTube.
steve forbes, cryptocurrency, government, money, bitcoin
Wednesday, 12 September 2018 01:23 PM
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