Russia to Ban Websites Offering Cryptocurrency After China Forces Exchanges to Shut Down

from SilverDoctors:

It looks more and more like putting two and two together equals the beginning of the global fiat currency crisis…

Here’s a question. If websites are blocked, how does one buy/sell or trade their cryptos?

Sure, we get it. A person can VPN into the UK or the Ukraine to bypass the IP address ban, but, if one of the benefits of crypto is the mobility, are they all really going to root their Androids and iPhones to install IP obfuscation, IP spoofing and all the other whiz-bang features not easily offered out-of-the-box? When it becomes a pain to use, where is the utility?

From Reuters:

MOSCOW (Reuters) – Russia will block access to websites of exchanges that offer crypto-currencies such as Bitcoin, Russian Central Bank First Deputy Governor Sergei Shvetsov said on Tuesday.

“We cannot stand apart. We cannot give direct and easy access to such dubious instruments for retail (investors),” Shvetsov said, referring to households.

Speaking at a conference on financial market derivatives, Shvetsov said the central bank sees rising interest in crypto-currencies because of high returns from buying into such instruments.

“We think that for our citizens, for businesses the usage of such crypto-currencies as an investment object carries unreasonably high risks,” he said.

It is a bloodbath across the crypto sphere:

Which brings us to the crux of the matter:

Before there can be any new currency, there must first be a crisis.

Imagine the chaos and confusion it would take to all the sudden unleash a new currency onto the stage. How will retirement accounts be converted? What happens to outstanding loans? Will old currency in the bank get a haircut?

Here’s some questions to think about:

• Are the central banks just going to stand by and let cryptocurrency rise on the global scale?
• Are the central banks ready to roll out their own?
• When the fiat currency crisis begins in earnest, are the central banks around the world going to sit by and watch Bitcoin go to $6,000, $8,000 or $10,000?

While there is great divisiveness right now in the alternative media in regards to the oil-for-gold contracts, one can’t ignore these two charts:

And here’s some perspective on the highly debated oil-for-gold scheme. Many analysts say that “you can already buy gold with any currency you want”.

That is true, but here’s the thing. Fiat currencies are all about confidence. It is not so much that anybody who wants to buy gold can, but it is more of will the rest of the world be confident in the Chinese yuan? Gold on the LBMA was already priced in Chinese yuan. Now Silver IS PRICED in Chinese yuan. This is confidence, plus convenience. There is also the opening of the Shanghai Gold Exchange, which facilitates the purchase of gold.

When we look at it in the confidence and convenience light, we can see that it is not about the ability to buy gold as it is the confidence in the shifting monetary power structure from West to East. Right now, everybody sees the shift happening, and where gold and silver prices are completely suppressed by governments and central banks around the world 24 hours a day, not only have people been getting out of their fiat, but they have been raking in massive profits along the way. Therefore, sure, it is easy to see why Bitcoin and the other cryptos have been so popular. When you have real money that has been going down in price (but up in value) over the last six years, it is understandable that people not only get tired of waiting but they grow outright frustrated.

And then there is the position that “China is allowing the speculation to run rampant” along with “China plays the long game”. Let’s look at those for a minute or two. China has trillions win US debt that could only every be repaid with worthless currency. It is in China’s interests to not draw attention to gold so the communist nation can keep stacking. As are as the long game, well, sure, they will play it until they can’t. When is that time? When the West no longer wishes to send physical gold to the East. The point is that there is a limit on the physical supply of gold, just like there is a limit on anything physical. When that limit is reached, they will not longer be playing the long game in the same way they play it now.

And now with this development coming from Russia? Well, we will wait for all the cryptocurrency proponents to say it is merely a “trial balloon to spike interest” in digital fiat of unknown origin or intention, or “they want to facilitate the use of decentralized, private currencies so they are cleaning up the bad stuff”.

OK. Sure

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