The recent news of Goldman Sachs offering Bitcoin is both a positive and potentially a negative for the crypto space in my opinion. It is good on one hand to see the move to a wider adoption of cryptocurrency, and the greater degrees of financial liberty that decentralization offers the general public.
However, I do have concerns about the institutional and government-backed variations of blockchains that we are beginning to see, and hear more and more of.
The most recent financial turmoil that hit the world is still fresh in the minds of many. 2008 through to 2014 was much less of an issue in countries like New Zealand and Australia, who pretty much sailed through the storm unhindered in comparison to many other countries in Europe.
Life here has been and still is comparatively good, while other countries racked by this turmoil are still finding their feet.
Some might argue that this was due to a stronger banking system, or the mining boom, but the factors as to why the impact was not as acutely felt are not the point of discussion here.
What is the potential issue with Goldman Sachs offering Bitcoin?
When you consider the fundamentals in some countries with their banking systems, there are some obvious gaps.
Some countries have what might be seen as better risk management strategies than others. In Australia, for example, the Reserve Bank of Australia guarantees the funds within that Authorised Deposit-taking Institution up to $250,000.00AUD.
That sounds pretty good on the surface, but most Australians are under the impression that the entire banking system and all the money within it are backed, and guaranteed by the Reserve Bank of Australia.
It is in areas of misunderstanding such as this that I believe the move made by Goldman Sachs offering Bitcoin, even though it is said to be at the response of their customer’s requests, potentially opens the door for people to associate banks with crypto in a way that they shouldn’t.
The blockchain is the greatest opportunity for the common person to take back control of their wealth, and I believe that Goldman Sachs offering Bitcoin is a risk to diluting the underpinning ethos of what Satoshi Nakamoto was working towards with Bitcoin.
How long will it be before they come out with their own coin which they’ll shill you, and you’ve been drinking their skanky Koolaid the whole time?
But It’s My Money In The Bank Isn’t It?
You may be right with thinking this in a sense, but, it really isn’t your money at all when you get down to the truth of the matter.
The money is simply a token forced upon you by the governments and law-makers in your part of the world, and it is only worth what they decide it is, and you can only access it and use it in the way that they will sanction.
The banks are the stalwart of the government in far too many cases around the world, and they act as the Rottweiler at the gate.
They put up a good front of looking out for their customers and taking care of them, five gold stars on their reviews look very appealing, don’t they?
Now, that’s not to say that a Bank can’t choose to refuse access to your money, they certainly can, and they have in the past.
You only have to do a simple search online and you’ll find sufficient examples of this level of manipulation of citizens civil rights to cause you concern.
Take for example the following examples of poor fiscal policy and financial crisis from around the world in the past 30 years:
* Given how big the news was in the media during the Global Financial Crisis, or the Great Recession, as it was known in the United States, I didn’t feel that more than one early 2008 mention from the United States would add much more value to this illustration.
Many would consider Australia as a country to be relatively stable from a financial perspective for its size, and one where the rights of the citizens are protected.
The sad truth is that there have been dealings behind the scenes where laws have been passed which will enable the passing of Bills such as the Financial Sector Legislation Amendment (Crisis Resolution Powers And Other Measures) Bill 2017.
Happy Valentines Day 2018 Australia, your Government just screwed you without even taking you out to dinner first! There were rumblings of this move back as early as March 2016, and people wonder why Bitcoin is looking like the new stable store of value that will rescue the people (who choose to participate in their own rescue).
I think the point here has been very clearly made that the illusion of control over your money in the bank is just that; an illusion. And Goldman Sachs offering Bitcoin does little to curry favor in my opinion when you consider the subversive foot they are trying to get in the door.