Are the Bitcoin and 'Big Data' the new gold or the new oil?

Filed in BITCOIN, NEWS ANALYZES by on 27 November 2017 8 Comments

In its first years, the bitcoin was mainly used by people who wanted to deliver their drugs anonymously and by mail at home. Those who started 7 years ago and have forgotten 10 euro of bitcoints are now perhaps the first bitcoin millionaires. If you had only 2010 euro in bitcoins on your account in 10, you would now have been 1,6 million euros richer. The value of the bitcoin has since been 16.255.800% increased. If you had purchased a bit of 1000 for bitcoins a year ago, you were now also getting a € 9.000 richer, because even in a year the bitcoin has increased by more than 1000%. Over the last 6 months there was an increase of 275% and even the last week the bitcoin has made a jump of almost 20%! What's the matter with that bitcoin? What makes the value of this digital currency so special?

There are plenty of analysts who call the exorbitant value increase of the bitcoin the next bubble; a bubble that can snap every moment. Many experienced investors therefore advise you not to go along with the bitcoin rush and invest your money in gold. But the pro-bitcoin sounds are just as fanatical. Today the bitcoin is already going to the direction 10.000 dollar limit; the 8000 limit has already been exceeded in euros.

What is the bitcoin?

In fact, the value of bitcoin is determined by its inventor (s). According to the official reading is that an anonymous person who is himself Satoshi Nakamoto calls. He implemented the principle of the bitcoin in 2009. You could argue that the bitcoin could be the ideal currency of the New World Order, so you can wonder who Satoshi really is. So the question is: what exactly is the bitcoin, what can you do with it and what determines the value?

The bitcoin is a digitally created currency, the quantity of which is available, determined by its creator (s). It seems that the amount of bitcoins is determined by a kind of digital encryption trick. It is, as it were, a currency that floats invisibly on the internet. You could compare it with a digital mineral. The author has devised an encryption that is so complex that it is difficult to crack. Bitcoins float somewhere in encrypted packages somewhere on the internet. They can, as it were, have nestled as a virus anywhere in the world. You could say that the inventors of the bitcoin have made a kind of new precious metal that is so unique that no one else can make it. They then hid it in all kinds of mountain shafts and caverns around the world. It is now the art of the "gold diggers" to find this new precious metal. They call this the 'miners'. These are individuals or companies that try to find the new digital gold made by Satoshi Nakamoto. For this they probably have to find certain code, which proves beyond doubt that it is a bitcoin package. The whole bitcoin game therefore revolves around encryption and finding the encrypted packets to find an amount of bitcoins. The 'miners' also contribute to the security of the bitcoin packages with their search. The more we search, the safer the bitcoin becomes for hackers (at least that is the belief).

The special thing now is that a limited amount of bitcoin Easter eggs are hidden in that worldwide web. In the early days of the bitcoin, you saw the rise of the miners (the digital gold diggers). They sometimes found a package with bitcoins, so that more and more bitcoins came on the market. In the meantime, it appears that the amount of bitcoins found is becoming increasingly scarce. And if the bitcoin can be compared to a new type of unique precious metal with very interesting characteristics, that would mean a demand for it. And if that precious metal turns out to be very interesting, then the demand increases. If the number of bitcoins found by the "gold diggers" then stagnates, then you get a value increase of that new special precious metal. You then get scarcity and scarcity means 'value increase'.

Now the bitcoin is not a precious metal, but it does have unique characteristics, so you could say that it is a very special precious metal. However, it is not a physical metal or anything that you can grab or touch. It is nothing more than a digitally created encryption package. So one bitcoin is, as it were, a package with one's and nulls in the digital world. You do not see it, you can not smell or touch it and certainly do not physically find it in a mine. The mining of bitcoins is therefore an arithmetic problem. You need computers for that, find the code and then extract the bitcoins.

What is so special about the bitcoin? The bitcoin was the first so-called cryptocurrency currency. Then there are others on the market. However, those seem less successful. This may have two reasons: 1. they were not the first en 2. they have not yet reached the scarcity, so that there has been no explosive increase in value (as a result of which they have not become a profitable speculation unit). The bitcoin has made early speculators rich and still makes people rich without them having to do anything. Who does not want that now? The currency that does not exist physically (because it is an encrypted package one and two) is popular with fortune seekers. At the same time, it is this growing demand that ensures that large companies also start accepting bitcoins as a payment unit. And of course you can exchange the bitcoin for euros, dollars and you name it. Those euros and dollars are also just a number on your bank account number, but you can eventually pull them out as a stationery from the cash machine and that is tangible, so we know that.

Whether the bitcoin will survive is therefore primarily a question of the amount circulating in the consumer market. If the bitcoin is more and more accepted as a means of payment, then that is probably a sign that the medium of exchange will survive. The advantage of such a means of exchange is that it makes the dependence on all kinds of complicated international transactions via regular banks superfluous. For example, if you want to transfer money to Japan via a bank right now, it will take a few days and it will cost you money. The bank would like to be paid for the transaction; they call it 'transaction costs'. A bitcoin is on the spot and transferred at no cost. So you could say that the bitcoin could be a very interesting cross currency for a global regime where currencies such as dollar, euro, ruble or yuan and their exchange rates can be transcended. That will only become a fact if you can also buy everything in bitcoins. And then we will probably also see the call for a global tax system through the bitcoin. After all, that currency escapes all sorts of tax boundaries, and you do not want that. So you could say that the bitcoin is a tool that accelerates and helps the establishment of a global financial system. And you can also argue that the bitcoin helps cashless society a hand.

The question you can ask yourself at the moment is: Do I want to get rich quickly with a digital currency that probably will continue to increase in value in the coming years (because of the scarcity mentioned) or I do not want to contribute to the rigging of the digital world and a global control system where everything is digital (including money)?

How secure is a cryptocurrency like the bitcoin?

However you turn or turn it: someone or a group of people has come up with the bitcoin principle. We now call this currency a 'cryptocurrency'. The term actually betrays what the essence of the "currency" is: crypto. There is encryption. And encryption is something that has a formula behind it. And to calculate a formula you need a calculator. We now also refer to computers as computers. For a very complicated encryption you need a very heavy computer to calculate the outcome. That outcome must be somewhere in the package. So there must be a match somewhere. Several matches must be possible in order to find multiple bitcoins. The 'miners' therefore need heavy computers. But that raises questions about the inventor of the encryption formula. If Satoshi Nakamoto (or the group that calls herself) came to this concept in 2009, they would have built the game, as it were, on the technology that was available at the time.

If we look at the current technological developments, then 1%, 20% or 90% is not sure that encryption of cryptocurrency will be cracked, but 100% sure. How you can be so sure about this is due to the developments in the field of quantum physics and therefore in the field of quantum computers (quantum computers in Dutch). Nobody can explain this better than Leo Kouwenhoven. If you watch the video below you will understand that crypto - or 'encryption' - will not be a problem for the quantum computers that are currently under development. Large companies already have computers that simulate the quantum computing principle, but we are now on the eve of the time when real quantum computers will come. Encryption is solved in no time for those computers. So one quantum computer in the hands of a hacker can paralyze the entire cryptocurrency world. And as soon as interconnectedness between cryptocurrency and the real world has arisen, it can give quite shocking effects. In addition, normal bank transactions are also arranged through encryption methods. That is why you have to put your card in such a bank reader with the larger transactions.

What will be the solution to this problem of imminent danger? The solution is usually in regulation. Crypto currency and encryption in general is the Achilles heel of the digital world. And the encryption in that digital world will only increase and increase. In 'the internet of things' everything will get a unique encrypted hallmark. The ACChain has now been devised for this. If you want to become rich in the digital world, then you must now go to the ACChain to step. The ACChain is, as it were, the new standard that now seems to be pushed from Japan to give everything that is produced a digitally encrypted code. A new crypto currency is linked to this; the ACC. That is like the bitcoin, but then the ACC also keeps track of which product it has been linked to. It is a medium of exchange as the bitcoin, but then it keeps exactly in whose hands it has been and which products have been traded with it. If you want to build a worldwide control system, the ACC is perhaps the bitcoin 2.0 and the wet dream of the group that is focused on 1 central world management. In 'the internet of things' everything and everyone gets a unique code and everything is traceable. However, that whole system is completely dependent on 1 principle: encryption.

So if the whole world depends on encryption and that encryption is hackable in the near future by an invention we have done ourselves, does not that call for regulation? Does not this threatening global threat call for a global solution? Yes, of course. We will then probably see that the right to encryption is in the hands of the large companies that can then use the same quantum computers to make encryption 'quantum proof'. And the big companies are (for those who have deepened) nothing more than the web builders for the spin in the center. Of course I am talking about the big tech companies like Google, Facebook, Microsoft and Apple. The internet, the internet of things and cryptocurrency will make the call for the centralization of power self-evident. We are therefore making ourselves dependent on the technological progress associated with the digitization of the world and that dependence will make us further dependent. You and I weave on our own web; the www.

Bitcoin and Big Data the new gold and the new oil?

That brings us to the question whether the bitcoin is the new gold and whether big data is the new oil? The answer to this from a financial perspective seems to be a resounding yes. Of course, the bitcoin can also be a hype, but as soon as large companies start to conform to such a crypto currency, the battle seems to have been won and it will not be so fast a bubble that explodes. The only threatening danger is therefore that of hacking the encryption. Furthermore, the scarcity seems to remain the motor behind a permanent increase in value. This increase in value may perhaps be somewhat of a struggle if a competitive currency is to overcome the first variant. We have seen that with Hyves and Facebook and maybe the same thing will happen with a now relatively unknown currency as the ACC. Who knows? Up to now the bitcoin seems strong and the value only seems to be rising. This is driven by scarcity: supply and demand. The more can be traded in bitcoins, the more people want to have bitcoins.

And while those cryptocurrencies are busy with their emergence, we also see the emergence of 'the internet of things' and the accompanying big data. In 'the internet of things' communicates everything with everything, as it were. We move on to a time when every package that you bring from the supermarket is "felt" by the smart meters in your car, in your phone and in your home. It is known what you eat when you eat it. In fact, everyone is always and everywhere known. And all that data is analyzed to filter out everything there. In this way, a complete, social, psychological, financial and health profile can be made of every person. And that is interesting data. That is data with a financial value. You can, for example, win elections because you know exactly what people's thinking is and in fact how you could influence them. In fact, you can steer very finely when everything is smart; including the city in which you live. You can bring people together without being aware that you are bringing them together, you can steer traffic flows and steer social movements. Big data is big money and so you could say that big data is the new oil of today.

With all this knowledge in mind, the question is no longer: "Is the digitization of the world good or bad?" I have not even talked about artificial intelligence and the call of people like Elon Musk to merge with the digital world, in order to prevent AI (artificial intelligence) overtaking us. We must therefore integrate and via the brain connection (in development) of Elon Musk's Neuralink to form a kind of intelligent network of human brains, so that we have an advantage over the AI. That is a special thought and it also sounds plausible from that perspective of 'the threatening danger of AI', but we go with that brain connection and the knowledge that Google's Big Data servers keep everything and analyze everything, not a very scary one. to meet the world? Cryptocurrency, the internet of things, 5G networks, Big Data and the brain connection; where does this stop? Or should we simply surrender to the singularity? You know that singularity where Google's CEO Ray Kurzweil wants to send us? The amalgamation of man and artificial intelligence; the next evolutionary step. Is that what we want or is it the final removal of who we are in the deepest being? (Read here more)

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  1. Martin Vrijland wrote:

    Or is there more to it?

  2. mec wrote:

    (From the Wikipedia) Singularity: There are several specific meanings:

    • singularity (mathematics): a value in which a function is not defined, for example with an asymptote
    • singularity (physics): a point in space-time in which the laws of nature lose their validity
    • singularity (control technique): the state in which a robot can come, if two or more independent movements have the result that the resultant of those movements have the same influence on the goal
    • singularity (meteorology): weather conditions or weather changes at fairly fixed times, such as the ice saints
    • technological singularity: point in the future in which technological progress becomes infinite.

    Books full of theoretical balls about that.

    Singularity is nothing else than a theoretical conception, if it were true our entire universe could not exist. To give the "right to exist" it is only possible in the digital illusion created by man. That the man eventually has to pass / dies by the AI ​​is ridiculous, suppose it could happen then you just have to pull the plug and poof away AI ...... who is dependent on who?

    • Martin Vrijland wrote:

      That is why AI is interwoven with the financial system (via blockchain money) and through the peer to peer nodes making themselves more intelligent by using every computer that it encounters in its network. That is beautifully portrayed in the film Transendence. AI thus provides, as it were, a hyve mind via the blockchain. And because AI enriches itself via blockchain (crypto currency as bitcoin) and people in the normal world (especially large corporations) also invest heavily in the blockchain, nobody will be inclined to pull the plug from AI.

      That the term is borrowed from natural science gives the author of the term, Ray Kurzweil, himself. The essence is that singularity is the aim of people at the top of large companies, presidents and countries. It is not for nothing that Saudi Arabia provided the citizenship to Sophia.

  3. SandinG wrote:

    It fits perfectly in the picture of the cashless society:
    http://www.zerohedge.com/news/2017-11-26/which-europeans-carry-most-cash

    Source: Economist; 01 / 9 / 88, Vol. 306, pp 9-10
    THIRTY years from now, Americans, Japanese, Europeans, and people in many other countries, and some relatively poor ones will probably pay for their shopping with the same currency. Prices will be quoted not in dollars, yen or D marks but in, let's say, the phoenix. The phoenix will be favored by companies and shoppers because it will be more convenient than today's national currencies, which will be a quaint cause of much disruption to economic life in the last twentieth century.
    https://socioecohistory.wordpress.com/2014/07/26/flashback-1988-get-ready-for-a-world-currency-by-2018%E2%80%B3-the-economist-magazine/

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