Billionaire currency manipulator and global political meddling mogul George Soros has delivered an attack on Cryptocurrencies that has thus far slipped under the radar due to his more widely reported statements about Donald Trump and his rambling yet evasive criticism of social media.
During remarks made at the World Economic Forum in Davos, Soros stated,
“Bitcoin is not a currency because a currency is supposed to be a stable store of value and the currency that can fluctuate 25% in a day can’t be used for instance to pay wages because wages drop by 25% in a day. It’s a speculation. Based on a misunderstanding”.
He continued, saying,
“There’s also as very innovative blockchain technology, which can be used for positive or negative purposes. Currently it’s used mostly for tax evasion and for people and the rulers and dictatorships to build a nest egg abroad.
So recently there was a just now a … conference where instead of discussing conditions in Russia they mainly discussed bitcoin because that’s what the rulers were interested in. So this will have a big effect on the valuation of bitcoin.
Normally when you have parabolic eventually it has very sharp break but in this case as long as you have got dictatorships on the rise you will have a different ending because the rulers in those countries are going to turn to Bitcoin to build their nest egg abroad. So I expect instead of an abrupt break to have a rather flat top over. But it’s nevertheless a bubble typical which is always based on a misunderstanding like the tulip mania. But the blockchain technology can be put to positive use and we use it actually in helping migrants to communicate with their families and to keep their money safe and carry it with themselves”.
These remarks are significant for a number of reasons. First of all, Soros lays his hypocrisy on the table for the world to see. Soros made a great deal of his fortune through currency speculation, something made possible by the fact that most currencies, including the British Pound Sterling, were not pegged to a metallic standard in 1992, when Soros helped to break one of Europe’s major currencies, on a day remembered in Europe as Black Wednesday.
If there is anyone who knows how to make a fiat currency lose a tremendous amount of value in a 24 hour period, that man is Soros. The fact that he criticised Bitcoin for being prone to the fluctuation that he personally caused to a major European currency in 1992, is symptomatic of a man detached not only from a sense of irony, but from any grasp of his own reality.
As for the use of cryptocurrencies like Bitcoin for unlawful or otherwise dubious activities, the leaked Panama Papers revealed that Soros used Caribbean and Latin American tax havens to invest in a variety of nefarious activities and none of this had anything to do with cryptocurrencies.
According to a 2016 exclusive report from the American press,
“Because it is based offshore, the Quantum Group of Funds is not normally subject to regulation by the United States Securities and Exchange Commission. But in the mid-1990s, Soros Capital bought several SEC-regulated firms, an act which required it to disclose the basic design of the Quantum network of interlocking offshore companies and bank accounts that shield Soros’ billions.
Soros Capital set up an offshore company in the Cayman Islands for the purpose of investing private equity with the Carlyle Group, alongside members of Saudi Arabia’s Bin Laden family. Carlyle’s partners include ex-heads of state and former CIA officials. The private equity partnership specializes in buying and selling weapons manufacturing and intelligence gathering companies with government and military contracts and it also uses secret offshore companies to conduct business.
Offshore Leaks does not include SEC information, but it reveals Soros Capital as a major investor and corporate officer of AIF (Indonesia) Limited. AIF combines private investments with public funding contributed by Asian governments to develop massive infrastructure projects. The database links Soros Capital to Dongya Ports Limited, owned by a tangle of offshore entities”.
Finally, in stating that cryptocurrencies like Bitcoin could be used by “dictators”, Soros himself is tied to some of the most loathed political movements in the world. Many countries, most recently Hungary, have moved to ban the activities of a number of Soros funded organisations due to accusations of unlawful and anti-democratic political meddling. If being an un-elected plutocrat whose international finance network is used to influence the political and social developments of countries around the world isn’t the definition of dictatorial, it is difficult to ascertain what is.
Moreover, Soros does not only show himself to be a humourless hypocrite who accuses cryptocurrency traders and miners of the very unethical activities he himself engages in, but this betrays the fact that at 87 years of age, he is deeply out of touch with the modern world.
Cryptocurrencies have a great deal of potential to allow rapid investment opportunities in the developing world, particularly in countries that do not have developing banking systems or vast domestic amounts of state-up capital for major initiatives. What’s more, cryptocurrencies allow for individuals and countries targeted by the increasingly weaponised sanctions from the United States, to exercise their economic liberty. It is not surprising that countries like Venezuela and Russia who have both embraced their own state backed cryptocurrencies, are also countries that perpetually come under fire from political meddling organisations financed by Soros.
Finally, with the BRICS group of nations examining the possibility of creating a new cryptocurrency basket based on the national initiatives of BRICS members, it is becoming clear that under the right conditions, cryptocurrencies could be vital in helping countries to break free of dollar based US financial institutions – the very kinds of institutions through which George Soros made billions.
While the petroyuan is the most important development that will eventually ween the world off of dollar dependency, the possibility of cryptocurrencies working in tandem with the yuan, other Asian currencies and gold backed currency baskets, will likely create an aggregate effect of making the all imperial dollar of men like Soros an increasingly less influential tool for political, social and fiscal manipulation throughout the world.
While many governments and individuals remain afraid of George Soros, it appears that Soros himself is afraid of cryptocurrencies. The multipolar blockchain revolution is one soft-power coup in which proponents of Soros style US hegemony will meet their match and lose their power. The colour revolutions may well be stopped by the cryptorevolution.