Quick recap - Please, always do your own research when considering investments. Our talks on these subjects are strictly conversational and are in no way suggestions or advice. This is an open conversation for everyone, and it is stressed that there is no recommendation or advice given. Always do your own research :-)
Maren and Steve discussed the global economy, blockchain technology, and community resilience, with a focus on the implications of regulated and deregulated currencies. They also explored the history and workings of the global monetary system, including the role of Bitcoin and the XRP Ledger, and the potential of cryptocurrencies like Xrp. The team emphasized the importance of understanding the transition to a digital currency system, preparing for its implications, and diversifying investments in blockchain technologies.
Next steps
Maren to post a recap of the discussion in the members forum on the website.
Maren to organize a follow-up session focused on individual-level strategies for navigating the transition to digital currencies.
Attendees to do their own research.
Attendees can watch the YouTube video about the FDIC and banking system.
Summary
Economy, Blockchain, and Community Resilience
Maren and Steve prepared to host a meeting with 85 participants, discussing topics related to the economy, blockchain technology, and community resilience. Maren introduced Steve, a medical oncologist and molecular biologist with expertise in the economy, as her best friend and co-investor. They planned to delve into financial shifts at global, national, and individual levels, and the implications of regulated and deregulated currencies. Maren emphasized the importance of community, both online and local, for sharing resources, knowledge, and support during times of economic change. The meeting was set to be interactive, with participants encouraged to raise questions and engage in discussions.
Global Reserve Currency System Explained
Steve, a scientist by training, shared his journey of interest in economics and the global reserve currency system. He recounted how the United States dollar became the global reserve currency after World War 2, and how this led to the United States controlling the world economy. Steve also discussed the Petrodollar system, an agreement between the US and Saudi Arabia in the early 1970s, where Saudi Arabia would only sell oil in US dollars. This agreement led to a constant demand for US dollars across the world, allowing the US to print money without collateral. Steve emphasized that this system has led to the US making decisions that affect the global economy, and that the world's belief in the US dollar's value is crucial to its stability.
Bitcoin's Role in New Digital Currency
Steve explains that the current global financial system based on fiat currencies like the US dollar is collapsing under massive debt levels. He claims Bitcoin was created by US intelligence agencies like the NSA as part of efforts to develop a new digital currency system. According to Steve, the original developers of Bitcoin included Jed McCaleb, Arthur Britto, David Schwartz, and Chris Larson, who patented the cryptographic algorithm SHA-256 used by Bitcoin. Steve argues that while Bitcoin has soared in value, it lacks real utility for mainstream adoption. He suggests major financial institutions are now promoting Bitcoin as part of a transition towards a new regulated digital currency system.
Explaining Bitcoin's Concept and Value
Steve explained the concept of Bitcoin as a digital token, not backed by any physical asset, but rather by a complex algorithm that computers solve to mine new Bitcoins. He likened it to digital gold, with a limited supply that increases its value. Maren clarified that each Bitcoin is unique and cannot be replicated. Aparajita expressed confusion about the origins of Bitcoin, to which Steve explained it as a digital asset created through a computer program called the Blockchain. Denise asked about the practicality of using Bitcoin for commerce, to which Steve responded that it's not effective due to its cumbersome nature and the need for instantaneous settlement. He also noted that Bitcoin's value skyrocketed from 5 cents to $70,000 due to its scarcity and the agreement amongst humans to value it.
Explaining Global Monetary System Evolution
Steve explained the history and workings of the global monetary system, including the role of Bitcoin and the XRP Ledger. He highlighted the flaws in the initial test system, which led to the creation of a better system called the XRP Ledger. He also discussed the antiquated banking system, known as Correspondent Banking, which is owned by seven major banks and involves a complex process of transferring money across borders. Steve emphasized that this system is being replaced by a new digital banking system, run on the blockchain, which settles transactions instantly and doesn't require the use of gold or other physical assets. He also mentioned that the value of these digital currencies is not backed by anything physical. Maren and Aparajita participated in the discussion, asking questions and clarifying points.
Exploring Blockchain and Cryptocurrency Concepts
In the meeting, Steve and Maren discussed the concept of blockchain and cryptocurrencies, likening it to the evolution of email and text messaging. They explained that blockchain is the new banking system, with tokens representing the new currency. They also discussed the potential of cryptocurrencies like Xrp, which could become valuable if it's used for transferring large amounts of economic value. Robert raised concerns about the definition of money in the context of blockchain, to which Steve and Maren responded by explaining the concept of value creation through use. The team also discussed the idea of a multi-chain world, with different blockchains serving different functions.
Blockchain Profit Motive and Transition
Robert Parks raised a question about the profit motive in blockchain systems, asking if it was all profit for those involved in the process. Steve clarified that Ripple, the company behind the XRP coin, makes its money by building solutions for banks to integrate with the system. Ripple owns 50% of all outstanding coins and will allocate them to participating banks as the system develops. Steve also mentioned that owning different coins could provide unique functions within the system. The group also discussed the potential for government control over the new system and the importance of community and bartering during the transition.
Blockchain's Impact on Traditional Banking
The team discussed the future of blockchain technology and its potential impact on traditional banking systems. Steve emphasized the shift from speculation to utility-based blockchain technology, with major institutions like the World Bank and International Monetary Fund already incorporating it. He also highlighted the importance of diversification in investments, suggesting a focus on blue-chip stocks and blockchain technologies like XRP, XLM, XDC, and HBAR. The team also discussed the potential of non-fungible tokens (NFTs) and their role in representing real-world assets. Maren clarified that NFTs are essentially digital stamps, similar to a notary stamp, and are not a wise investment at this time. The team agreed to further research potential investments and share information in their members' forum.
Preparing for Digital Currency Transition
In the meeting, Maren and Steve discussed the transition to a digital currency system, emphasizing the need for individuals to prepare for this shift. They highlighted the importance of understanding the system and its implications, rather than relying solely on banks. Maren suggested that individuals should diversify their investments and consider blockchain companies. Steve warned about the potential collapse of banks due to fractional banking. The team also discussed the importance of digital identity and the need to be cautious when sharing personal information. The conversation ended with plans for a follow-up session to delve deeper into individual-level strategies for navigating the digital currency system.