Modern financial system is ponzi scheme that will trigger crypto mass adoption

The modern financial system is based on a huge "Keynesian, magic money tree ponzi scheme" that will finally collapse to possibly trigger mass adoption of cyptocurrencies, according to the Overstock CEO Patrick Byrne. He says that the collapse will make many more people to turn to cryptocurrencies and it is time to tell whether that will be Bitcoin or another cryptocurrency.

He was speaking to a cryptocurrency YouTuber Naomi Brockwell referring to the government's getting of loans from Federal Reserves a private group with special powers to lend "fake money" to government in form of treasury bonds etc. which are then paid back by tax payers in real money. He, however, said that know-your-customer (KYC) and anti-money laundering (AML) requirements will be necessary tools to prevent criminals from thriving on blockchain technology.

He said while some people would use a completely anonymous blockchain technology for good purpose, criminals could exploit the system. And given the need to be careful of developing a regulation that would steal people's freedom and privacy to use their finances as they wish, people should the ones to develop such a regulation.

Overstock was one of the major retailers in the world to accept Bitcoin back in 2014. His opinions are not far from what many people would think: that instability in legacy financial system would eventually trigger a cryptocurrency revolution since people would be looking for an option. 

Citing the case of China's ban on cryptocurrencies ICOs and other undertakings, he said in addition to security issues around use of blockchain, governments may fear seeing an entirely anonymous platform they do not have power over since people interact outside of legal social platforms. Therefore, in addition to social challenges of using blockchain where it is thought to be complex technology for tech experts, there are also regulatory challenges to overcome. According to him, a country like Venezuela has proven how a cryptocurrency could work in a jurisdiction.

David Kariuki

David Kariuki likes to regard himself as a freelance tech journalist who has written and writes widely about a variety of tech issues that affect our society daily, including cryptocurrencies (see cryptomorrow.com and coinpedia.org); climate change (cleanleap.com), OpenSim and virtual reality (see hypergridbusiness.com). He is currently pursuing a MSc in Environmental Management at Open University. He does write here not to offer any investment advise but with the intention of informing audience, and articles in here are of his own opinion. Anyone willing to use any opinion here as advise to invest in crypto should obviously take own responsibility and accountability of their losses (or benefits) thereof. You can reach me at eqariu@gmail.com or david@cryptomorrow.com