The Future of Cryptocurrencies — and Democracy

“The strength of democracy is the principle that everyone should be treated equally. That elections should be free and fair. That corruption should be given no quarter.”

Vice President Kamala Harris today, apparently without irony

Addison WigginDear Reader,

Good thing we don’t live in a democracy. We live in a Republic. Even the Vice President ought to know that, right? Yeah, right. It wouldn’t suit Ms. Harris’ agenda to speak clearly about the proper role of government.

If you forgot that today is the one-year anniversary of the Capitol riot, turn on any news channel or visit any media site.

Just about everywhere you turn, some politician is lecturing us on the importance of democracy. Of course, they’re not mentioning the billions of dollars that helped put them in office… or the trillions of dollars they’re spending to help keep themselves there.

They certainly won’t mention that their power no longer comes from the people, but from the currency that they create and control.

“When something is rigged against us, we eventually rebel,” Charles Hugh Smith told us back in August.

We’ve long believed that re-establishing money’s tie to gold and silver would be the most peaceful way to end the corruption — forcing our democratically elected leaders to spend within their means.

In 2021, we also spent a lot of time pondering whether wide adoption of Bitcoin or some other cryptocurrency could have a similar effect.

The U.S. government won’t give up the dollar’s dominance without a fight, though. My prediction for the year is that we’ll see a lot more regulation of cryptos — the last grasp of a discredited state.

And I’m not the only one who thinks so. The Economist points out that “cryptocurrencies are being domesticated as regulators tighten rules.”

It foresees “a three-way fight for the future of finance — between the crypto-blockchain-DeFi crowd, more traditional technology firms and central banks — that will intensify in 2022.”

But our frequent Sessions guest George Gilder says that’s the wrong way to think about it. During the Six Predictions Summit, he decried the “prevailing delusion” that “money is intrinsically a government function; that money is an aspect of sovereignty.”

He says the blockchain technology that makes cryptocurrencies possible will make that clear. It will enable us to overcome “the dual hacking crises that the current economy faces: the hacking of the internet by spies and hustlers and phishers, and the hacking of world money by central banks.”

However, Mr. Gilder adds, “the solution is not the original Bitcoin.”

That sentiment is echoed by another Sessions guest, James Altucher. During the Six Predictions Summit, he admitted he’s “never going to sell Bitcoin” because he expects it will continue to grow. At the same time, he thinks other cryptocurrencies will become more important and valuable.

“I think eventually Ethereum will replace Bitcoin in price,” he says. That’s because the technology behind Etherium is very versatile. It’s “almost like a programming language or a platform to build projects using blockchain.”

And he’s identified early-stage cryptocurrencies that offer a chance for Bitcoin-style gains at a more reasonable price.

You can learn more in the special presentation he’s put for you here. But hurry — it will be taken down at midnight EST.

Click here for details.

Follow your bliss,

Addison Wiggin

Addison Wiggin
Founder, The Financial Reserve


Addison Wiggin

Addison Wiggin

Addison Wiggin is founder and executive publisher of Agora Financial LLC, an independent economic forecasting and financial research firm. He and Bill Bonner began writing the firm’s flagship Daily Reckoning in the midst of the tech boom and bust. It was one of the first widely distributed email newsletters on the Internet. The publication’s critical eye on finance and economics continues today. He’s also creator and editorial director of Agora Financial’s daily missive The 5 Min. Forecast.

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