Tag: East India

With Bitcoin’s Adolescence Comes Real Competition

Authored by Tom Luongo,

With the calling off of the New York Agreement to force the implementation of Segwit2x Bitcoin is now at a fascinating fork in the road (all puns intended).  Bitcoin prices are falling as people leave the network and Bitcoin Cash prices are spiking.

I advised my subscribers to hedge 15-25% of their Bitcoin position with Bitcoin Cash at $400 on October 28th.  That trade has a current return of over 300% with Bitcoin Cash now trading solidly above $1200.

Even with what now looks like a blow-off, near-term top in Bitcoin prices, Bitcoin investors are still up around $600 per Bitcoin (around 12%) since that day.  So, no one should be crying in their beer just yet.

Where Winning Looks Like Losing

But, as Rhett Creighton points out in a very good article at Cointelegraph,com, Bitcoin’s newfound weakness may be structural for more than just a few days worth of healthy, technical correction.

In short, the Bitcoin Core Developer team which won the battle over Segwit2x may have lost the war.  Bitcoin needs a transaction-scaling solution.  And it needs one quick.

Bitcoin Cash is a real competitor to Bitcoin because it combines big 8MB block and quick settlement times without any of the off-chain or side-chain complications associated with segregated witness (Segwit).  

But it does have the drawback of a single core developer. But, I’m a hard-core free-market guy.  Competition is what keeps everyone honest.

This is not to say that I’m not a fan of Segwit.  I am.  But, am I a fan of Segwit on Bitcoin?  I don’t know. 

In the world of cryptocurrencies I want a reserve asset that sits at the bottom of Exter’s Monetary Pyramid that can be 1) incorruptible and 2) a standard against which all other monetary-like assets, including utility tokens like Ethereum, can be measured.

exter's pyramid

The Current Monetary System – Exter’s Pyramid with Gold as the Foundational Asset

It’s the function that gold still functions within the global monetary system, despite protestations to the contrary by everyone from central bankers like Ben Bernanke (“I don’t know?  Tradition?”) to students of history like Martin Armstrong (a hedge against government incompetence).

Bitcoin has to continue to be that asset for the cryptocurrency and crypto-token community or the community will go adrift, unmoored from the anchor of sequentially-verified transactions from previous blocks.

The Real Battle for Bitcoin

And that’s where I have a bone to pick with Rhett over the following:

I fully expect the market cap of all crypto tokens to increase exponentially over the next few years, but this is not a winner-take-all scenario. Today, mainstream media financial advisors are touting Bitcoin as “the new gold,” but it can’t ever be that. To get a sense of how it’s different, imagine a universe where anyone could create a new kind of metal with essentially the same properties of gold.


Expecting Bitcoin to have the majority market share of Blockchains in the future is about as ridiculous as expecting the East India Company to be more valuable than all other corporations combined today.

Nonsense. The cryptocurrency market languished for four years because there was no compelling reason to back any other coin than Bitcoin in any substantive way.  The past is littered with technologically superior coins to Bitcoin and yet Bitcoin is $6000+ and many of them are $0.001.

The market craves those unit of account and store of wealth attributes that real monies have.  Just because something has the potential to be that doesn’t mean the market has to pay it any attention.  Otherwise Feathercoin or Litecoin would have out-competed Bitcoin three years ago.

Litecoin would have never had to incorporate the Lightning Network to differentiate itself from Bitcoin.

Rhett’s own project, Zcash, wouldn’t have been looking for its niche in the privacy space.  But, the use of these coins doesn’t mean that Bitcoin can’t act like digital gold.  In fact, with the collapse of Segwit2x and maintaining its high fees and low transaction density Bitcoin has more in common with physical gold than it has ever had previously now that the cryptocurrency market is maturing into one that settles actual trade.

Crypto-Gold Mine

It’s become a bad medium of exchange, just like gold.

If you want to move money around the net Litecoin is far superior as are dozens of other coins.  But, if you want the security of the oldest blockchain with the most trust built up over time, then Bitcoin is absolutely where you store your wealth.

Just like Gold.

Bitcoin’s Flaws Become Strengths when viewed as a Foundational Monetary Asset

Crypto Exters Pyramid

Do you see the similarities here?  Gold is hard to do real business in.  Who wants to weigh out 0.1 grams of gold to buy a hamburger (around $4.50)?  There’s a real cost to doing transactions using gold as a medium of exchange.  It’s a time cost.

Bitcoin now looks exactly like Gold.  It’s expensive to own and or move Gold when compared against the dollar just like it is expensive and slow to move Bitcoins when compared with Litecoin or something else.

That makes its flaws strengths as a means by which to interface the ‘real’ world with the ‘crypto’ world.  Bitcoin doesn’t need to maintain transaction market share to maintain its relevance.  In fact, it losing market share is an expression that it is becoming that foundational asset we need it to be.

What we need is the volatility of the cryptocurrency exchange rates to stabilize.  For Litecoin to trade consistently within a 10% band relative to Bitcoin.  If we begin to see that volatility of the LTC/BTC pair die down over the next 18 months or so, then remember then you’ll know what is happening.

It will prove the whole cryptocurrency thesis that lack of central control over the issuance of monetary assets will be driven by end-users not central planners.

The dollar price of these coins will continue to rise, but they will do so in concert, in relation to the foundational asset, most likely Bitcoin.  Over time, we should see one currency emerge as the standard by which all others are measured.

Bitcoin’s Competition

But, Rhett is right that Bitcoin Cash has the real potential to be the real winner here.  Why? Because it is a soft fork of that original Bitcoin blockchain with the added advantages of a it being, for now, an excellent medium of exchange — low fees, short settlement times, no side-chains.

What this means is that Bitcoin Cash can, if its backers and developers stay on mission and are honest, compete with Bitcoin for the role of foundational asset.  Litecoin can’t.  It made it’s choice by going with side-chain payment processing.

The dark horse in this race is Bitcoin Gold. But, it too has the potential to become the new crypto-gold.

What Does this Look Like?

What we don’t know at this point is what the market wants in terms of cost structure for its reserve asset.

Do we want a very liquid one or a relatively-speaking illiquid one like Gold?  It’s a good question that I don’t have an answer to today.  My guess is an illiquid one that can reflect the value of the crypto-markets versus the value of the fiat-markets better by resisting hot money flows because of the high barrier to exchange.

Either Bitcoin or Bitcoin Gold.

But what I do know is that the entire cryptocurrency market just grew up a little and real world growing pains are on the horizon.

I would be hedged accordingly amongst all of the top market-cap coins that the market is right now separating off as serving real market needs.  I believe in the division of labor.  Each will serve different niches and work to keep the foundational coin developers honest.

There is no one blockchain can rule them all.

We tried that in the ‘real world,’ it was called the petrodollar and it gave rise to a level of wealth inequality and systemic corruption orders of magnitude larger than the world has ever seen.

Why would we want to recreate that in the crypto-world?  That’s what, ideologically, the Bitcoin Core developers were fighting for against Segwit2x.

If we want to make the crypto-dollar then we’ve learned absolutely nothing.

And we’re the ones that need to grow up, not Bitcoin.


Myanmar’s Rohingya Crisis: George Soros, Oil, & Lessons For India

Authored by Shelley Kasli via GGINews.com,

"When George Soros comes to this or that country… he looks for religious, ethnic or social contradictions, chooses the model of action for one of these options or their combination and tries to 'warm them up'," Egorchenkov explained…

 The ongoing crisis in Myanmar including tensions between Buddhist and Muslim communities and the military crackdown by Myanmar Army and police seems to be a multidimensional crisis with major geopolitical players involved according to a report by Sputnik International.

As per the report Dmitry Mosyakov, director of the Centre for Southeast Asia, Australia and Oceania at the Institute of Oriental Studies of the Russian Academy of Sciences, told RT that the conflict “was apparently fanned by external global players” and “has at least three dimensions”.

First, this is a game against China, as China has very large investments in Arakan [Rakhine],” Mosyakov told RT.


“Second, it is aimed at fuelling Muslim extremism in Southeast Asia….


Third, it’s the attempt to sow discord within ASEAN [between Myanmar and Muslim-dominated Indonesia and Malaysia].”

The conflict is mostly concentrated in the country’s northwestern region in the Rakhine State which consists of vast reserves of hydrocarbons located offshore. This vast reserve of hydrocarbon is the major reason why external players are using the conflict to undermine Southeast Asian stability, according to Mosyakov.

“There’s a huge gas field named Than Shwe after the general who had long ruled Burma,” Mosyakov said.

In 2004 this massive Rakhine energy reserves were discovered and by 2013 China had connected Myanmar’s port of Kyaukphyu with the Chinese city of Kunming in Yunnan province with oil and natural gas pipelines. Through this oil pipeline China can bypass the world’s most congested shipping choke points – the Malacca Straits, while through the gas pipeline hydrocarbons from Myanmar’s offshore fields are transported to China.

The development of the Sino-Myanmar energy project coincided with the intensification of the Rohingya conflict in 2011-2012 when 120,000 asylum seekers left the country escaping the bloodshed.

Dmitry Egorchenkov, deputy director of the Institute for Strategic Studies and Prognosis at the Peoples’ Friendship University of Russia doesn’t believe that this is a coincidence. Although there are certain internal causes behind the Rohingya crisis, Dmitry believes that the crisis might be fueled by external players, most notably, George Soros.

By destabilizing Myanmar they could directly target China’s energy projects.

George Soros funded Burma Task Force has been actively operating in Myanmar since 2013 although Soros interference in Myanmar’s domestic affairs goes deeper than that.

In 2003, George Soros joined a US Task Force group aimed at increasing “US cooperation with other countries to bring about a long overdue political, economic and social transformation in Burma [Myanmar].”

A document published by the Council of Foreign Relation’s (CFR) in 2003 entitled “Burma: Time For Change,” states that “democracy… cannot survive in Burma without the help of the United States and the international community” and calls for an establishment of a group to implement the project.

“When George Soros comes to this or that country… he looks for religious, ethnic or social contradictions, chooses the model of action for one of these options or their combination and tries to ‘warm them up,'” Egorchenkov explained, speaking with RT.

According to Mosyakov, it is a globalist management policy to sow discord in nations by fuelling regional conflicts which allows them to exert pressure on those nations and ultimately gain control over their sovereignty. A recent example is the Ukrainian Crisis and the Greek Crisis before that. When the flames are out and the country ravaged with the crisis, it is time for the vultures to descend.




What one should understand is that a crisis just doesn’t take a toll on the infrastructure and human lives but it also ruptures the economy and puts the country in huge debt. And it is through this debt that the global players dictate their terms to sovereign nations for decades or even centuries if there is no course correction. That is the reason why both Ukraine and Greece appointed Rothschild as their debt adviser to assist with their growing debt crisis.

Lesson for India


Even India is hunting for a solution to its Bad-Debt Crisis (read the corporate loans that state-owned banks wrote off, which were taken by arousing nationalistic sentiments in the media) which is a Rs 1.14 lakh crore (this is a conservative figure) scam as we explained in our special Demonetization issue War on Cash. However, a solution has already been prescribed by the deputy governor of Reserve Bank of India, Viral Acharya. His solution is to simple sell-off state owned units to foreign players bankrupted in the 2008 crisis. You can read all about it here – PARA – A New Central Bank For Strategic Sale Of India.

These Money Masters doesn’t lose anything in case the situation escalates and war erupts between China and Myanmar, infact they have everything to gain from it; just like they had everything to gain from the Russian-Ukrainian conflict. Educated folks call it Balance of Power. It is through this same strategy of Balance of Power that even the India-China conflict is being orchestrated. But we don’t have to rely on war to be in debt, our policy makers are already doing a good job at it. We are already in the midst of a major crisis, be it agriculture, economy, civil society and press or defense and security. This is the direction our policy makers have set for us, and it leads directly to destruction, unless we do a major course correction.

Could such a crisis be orchestrated in India?

This is the hypothetical question we raised after Liquor baron Vijay Mallya was allowed to flee India to take refuge in London. This was not the first time a person fleeing local law in foreign countries had taken shelter in London. Since decades, high-profile foreign offenders with considerable wealth have found refuge and a safe place to park their assets and enjoy a peaceful life in Britain.

Similar is the case of Russia. Immediately after the collapse of the Soviet Union large-scale privatization of state-owned assets was implemented. From Glasnost and Perestroika (liberalization and privatization or globalization) – the tools created by the East India Company for enslavement of their colonies (known at the time as Free Trade) emerged the Oligarchs – who amassed vast wealth by acquiring state assets very cheaply (or for free) during the privatization process.

After coming to power Vladimir Putin set about on a massive purging of these oligarchs from Russia, the power struggle that continues to this day. The most famous case is that of Mikhail Khodorkovsky. In 2003, Khodorkovsky was believed to be the wealthiest man in Russia (with a fortune estimated to be worth $15 billion) who accumulated considerable wealth through obtaining control of a series of Siberian oil fields unified under the name Yukos, one of the major companies to emerge from the privatization of state assets during the 1990s. Khodorkovsky was later backed up by Henry Kissinger, George Soros and Rothschilds as a candidate to run for a Presidential election against Putin as well as for an attempted revolution.

UK has been traditionally the largest sanctuary to not just money launderers and fraudsters but foreign terrorists and extremists as well. Everybody, who is somebody in the world of terrorism, has found a rear base in the UK.

There are as many as 131 pending pleas for extradition of wanted criminals from Britain by India alone.

Below are just some of the cases of individuals wanted in India and living in Britain:

  1. Vijay Mallya (financial offences)
  2. Lalit Modi (financial offences)
  3. Ravi Shankaran (accused in the Indian Navy war room leak case)
  4. Tiger Hanif (wanted in connection with two bomb attacks in Gujarat in 1993)
  5. Nadeem Saifi (music director accused and acquitted in the Gulshan Kumar murder)
  6. Raymond Varley (accused in child abuse cases in Goa)
  7. Lord Sudhir Choudhrie (one of India’s most notorious arms-dealers and Italian consortium’s middleman in Finmeccanica helicopter scandal)
  8. Several individuals related to the Khalistan movement
  9. Several individuals related to the LTTE
  10. Several individuals related to ISIS

Even MQM leader Altaf Hussein resides in London, under the protection of the British government, which has refused Pakistani government requests for his extradition to face trial for murder.

Last year, Khodorkovsky said Open Russia (a George Soros funded organisation) would provide logistical backing to 230 candidates running from various opposition parties or on independent tickets in September from the headquarters of his Open Russia foundation in London. With rise of Indian Oligarchs increasingly finding asylum in Britain, is it a far-fetched scenario for India as well when these Indian Oligarchs would be used for inciting revolution in India or even orchestrating elections – that is in case India goes for course correction?

Even so, there is a way to avert such a scenario as well as the impending crisis.

After Putin kicked them out of Russia the same Oligarchs setup shop in India under the same tried and tested ideology of enslavement – Glasnost and Perestroika (called in India as Liberalization and Privatization) during the 90s.

It is this group of Oligarchs or Robber Barons (as they are known in the United States of America) that is still operational in India.

What our intelligence agencies should be doing instead of spying on opposition political parties and depending on foreign agencies for information and direction is to track this shadow network and dismantle its grip on India as was done in America (the process that still continues to this day).