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Guest Post: What Every Libertarian Should Know About Bitcoin
Submitted by Michael Krieger of Liberty Blitzkrieg blog,
Tom Woods Talks Bitcoin... Fantastic Interview
Soon, whether via Bitcoin or whatever comes next, it will be possible to strip banking away from bankers, and money away from governments.
From a recent article in the Spectator titled “How Bitcoin Could Destroy the State”
Support for Bitcoin amongst Austrian economists is growing by they day and in this interview, the highly admired and respected Tom Woods, discusses Bitcoin with Erik Voorhees of Bitinstant (a popular, rapid way of converting fiat into BTC). This interview very poignantly addresses many of the layperson’s concerns about it that I have heard over the past several months. Remember, despite the price rise, Ben Bernanke is still creating the equivalent of 75 Bitcoin markets every month with his money printing.
This worth every single minute of your time.
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IM SO TIRED OF THIS SHIT.... QE IS NOT "MONEY PRINTING" I don't agree with it, but stop misleading people......FUCK. Do you people READ?
BONDS to DOLLARS
think of it as
SAVINGS ACCOUNT to CHECKING ACCOUNT
THE NET FINANCIAL ASSESTS = 0 = NO NEW FINANCIAL ASSETS CREATED IN THE SYSTEM!!!!!!!
IF ANYONE SAYS QE IS "MONEY PRINTING" THEY DO NOT UNDERSTAND THE FINANCIAL SYSTEM....STOP LISTENING TO THEM IMMEDIATELY!!!!!!
What did the FED buy the bonds with booty
They didn't buy them they just transferred virtual "dollars" from securities accounts to cash accounts at the fed.
I see.
QE is not money printing. It's money "easing".
Why NOT QE to infinity?
QE to infinity is completely harmless.
I am not going to question the technology or idea factor. I would like to question the human factor, which is obviously present. What will happen when 5 % or more of bitcoin 'users' rush to the exit?
I am not going to question the technology or idea factor. I would like to question the human factor, which is obviously present. What will happen when they implement currency controls in the PIGS and 5 percent of the people all rush to buy bitcoins and there are only so many available.
Now what is a more likely scenerio...
and one huge plus with bitcoins is the fractional transactions... yes it is nice to by a gram or so of gold but a dust of it? An atom of it? you can with bitcoins
If .10 of Ag is too big there are nickels (and/or copper pennies). Anything less than that I'll consider the peel of the lemon. YMMV.
Happens every day. The price typically falls 10% in a day. Something you live with, such as the vertical bars on the silver spot price graph.
What are the better odds:
1. ) The internet will be up tomorrow
or
2.) the value of the Federal Reserve Note will increase tomorrow
If you answered (1), you might want to think about getting a couple of bitcoins and hanging on to them for a few months or years.
If you answered (2), I'd really enjoy playing poker with you sometime.
Ok we have 6E ES YM why not, BC where do I hook that up..
I like the concept but some of the arguments of fiat unfortunately also apply to bitcoin.
The main one being it has no intrinsic value, hence if you can't hold it, you don't own it.
But some governments are already saying it's being used for illegal purposes to purchase drugs and weapons... so you can see where this is heading already.
BOTTOM LINE: They don't like it because they can't control it... and if they are unable to gain control of it they will probably BAN it's use.
I don't think there is anyone here saying we should sell all our silver to convert to 100% bitcoins
'If you can't hold it, you don't own it.' - you can hold it, as an ecrypted wallet file, which can be transcribed to any physical object and palmed.
....if they are unable to gain control of it they will probably BAN it's use.
Just as Cyprus controls the flow of fiat...just as gold can be confiscated...and pensions and deposit accounts. Being bannable is not enough reason not to use it...it is true of everything. Even old 20 pound notes in England, dating 5 years or so, are not legal tender.
Nothing has or can have 'intrinsic value'.
Lead has intrinsic value. It can easily be melted to be formed into all sorts of useful shapes such as sinkers for fishing, thereby benefiting from another of lead's useful intrinsic properties, its greater density, kinda like its sister element, gold. Once thus formed, it can be rigged with another metal with useful intrinsic physical properties, iron, to procure food fish more efficiently. It also be formed into projectiles with copper jackets and propelled at high velocity to procure animals for more foodstuffs and for social purposes. If you use your imagination bit and reflect on the origins of money that you'll get the hang of it. I suspect that things have little intrinsic value only to those who lack creativity.
bitcoin skeptic - the main problem with bitcoin is double spending problem - how a seller can quickly and reliably check if a given bitcoin was not spent right before presented to him as payment ?
Get payment first before finalizing delivery.
how do i check the payment - has the bitcoin i get been used in other transactions recently ? How long will it take to ask every retailer using bitcoins if he has not recently received the bitcoin i just got ?
As far as I know the software synchronizes the wallet, so that it is not possible for a bitcoin to be sent to two different people simultaneously. When you send a bitcoin you lose it. The records of the transaction are stored across each node, i.e everybody who uses bitcoin sees the transaction. Thus the system can deduce you no longer have the coin to send. Are you aware of a fault in the transaction code?
how do the guys who invented bitcoin make money? do they have faster "miners" than anyone else? do they get a "free" number of bitcoins every ten minutes? or is it just on commission charges on the conversion of any global fiat currency to bitcoin? can you arb bitcoins between different fiat currencies (notionally at least, a bitcoin = a bitcoin, just the local fiat currency equivalent might be different?).
can you borrow or short sell bitcoins? i suspect not..= major plus.
what is so special about 21 million coins, split into 100 million pieces? is this closed circuit with a finite life going to be superseded by "bitcoin2" or "bitbar" or "bitingot" or "bitgold" or "bitdung" or "bit mickey d's"?
when will i be able to swap bitcoins for thrity years worth of city taxes with no inflation in the number of bitcoins needed to pay these taxes i will certainly be interested.
bitcoins have their own inflation dynamics, but certainly physical fiat and electronic fiat has no automatic inflation protection since ZIRP was intiitiated..i will keep watching and reading to get a sense of how value is retained in a bitcoin..since we all know value is destroyed in fiat by central banks (the "virtual" taxation and redistribution transfer mechanism from the poor to the rich)
in the beginning it was easier(faster) to generate new bitcoins. Now it has become harder (takes more time and more power). The whole schme is that some first miners have mined alot of coins and now want to sell them :)
ah hah!
I am a PMs fan and a fair proportion of my assets are in PMs. Gold and silver are the ultimate store of value and the ultimate protection against fiat currency collapse. However, I urge BTC sceptics to think again. There are valid concerns about the future of BTC - though those concerns have nothing to do with BTC being "hacked" or with competing currencies challenging BTC (first mover advantage should not be underestimated). The main risk as I see it is a sustained regulatory attack on the exchanges by the US Government. However, it has the potential to be the most revolutionary monetary development since the invention of money itself. I see no contradiction between holding BTC and PMs. A good portfolio should contain both.
gold and silver IS NOT ultimate store of value :)
value comes from labour done by society for you. It is ultimately a question of what society will accept from you in exchange for its labour
hmmm...from here: https://mtgox.com/
Mt.Gox announces new withdrawal limit rules for its customers TOKYO - JAPAN - March 13, 2013 Due to recent events in the Bitcoin community and the spike in the Bitcoin price we at Mt.Gox are putting in place a new daily withdrawal limits. While our daily limits for traditional currencies will remain unchanged with a maximum of $1,000 USD per 24 hrs, the Bitcoin daily withdrawal limit will change from 200BTC to 100BTC per 24 hrs for unverified customers. Verified and Trusted customers that already have their daily/monthly limit raised will not be affected with this change, however, Verified and Trusted customers that have not yet asked for their withdrawal limit to be raised will then be offered the following limits : Verified Status (Level 1) Maximum monthly withdrawal of 50,000 USD (or equivalent) capped to a maximum of 10,000 USD per 24 hrs and a 1,000 BTC withdrawal per 24 hrs without any monthly limit. Trusted Status (Level 2) Maximum monthly withdrawal of 500,000 USD (or equivalent) capped to a maximum of 100,000 USD per 24 hrs and a 10,000 BTC withdrawal per 24hrs without any monthly limit. Of course we will re-evaluate these limits and adapt and revert them to their past value if necessary and if the value of Bitcoin against USD decreases.
I'll give the BTC crowd props for their passionate defense of the Bitcoin. In another BTC thread, someone made the comment that "there are lots of things in the financial world to mock, before picking on poor Bitcoin"...and I have to agree.
But Bitcoin ain't Gold. Not yesterday, not today, not tomorrow.
The big, major difference between BTC, and Gold?
The money system as we know it, is changing. Eventually, Gold will be reentering the monetary system as the yardstick against which all paper is measured. The leveraged paper BS in the gold market will go kaboom, as the physical market and paper market disconnect (which we're already seeing the beginnings of).
Comparing Bitcoin to Gold is patently absurd, with respect to the fact that you're essentially comparing the concepts of "Tangible" to "Intangible". Basically you're comparing paper Gold to physical Gold......there's a world of difference.
Bitcoin is an electronic form of MOAR paper, and therefore subject to the same games as any other paper is.
I'm sure I'll get downvoted and whined at for "not knowing as much about Bitcoin as (the replier)....", but it doesn't change the fact that my fiat's on Gold, not more fiat, even if it's "eFiat".....
We don't believe in God, we don't believe in Government, but we believe in some anonymous technerds who transform electricity into a digital value that has increased by 70% in 2 weeks (Cyprus and Russians anyone?), and 2100% in one year and 11990% since July 2010 ... I think not
http://bitcoincharts.com/charts/mtgoxUSD#tgSzm1g10zm2g25zvzp
Worrying about how to preserve wealth has turned many people into paranoid neurotics. To survive what is coming, people need to focus on being in the best physical, mental, and spiritual health possible. There will be a point in the coming collapse where material wealth will not save anybody. In fact, material wealth may prove to be a liability.
At least Tyler's joined the party, even though he's 2 years late and a 1/100 of a bitcoin short. The rest of the dim bulbs and statist trolls on Zerohedge will come around when we are somewhere north of 1k. Now the arguments have devolved to "it can't be legit if they haven't stopped it" or "if it's legit they will stop it". Meanwhile the Bitcoin sails happily past 107 :-)
The Bitcoin Channel
Shutup and buy a Bitcoin,muppet (not you, 50bags). Cause this train's gonna keep runnin' 'til until then and that'll give you more fits than just acknowleding that you are a muppet and you always buy the two lips at the top.
As happy as I am to see a private money system, BitCoin is pure vapor, and by its very nature cannot have any intrinsic value. I would not use it to store wealth over any long period of time and I would not keep more "money" in the form of Bitcoins than I needed for immediate use. It is vulnerable to some yet-to-be-discovered technical hack or failure. You could wake up to find your BitCoins were worth a lot less in the morning than they were the previous evening.
But as government grows more intrusive and willing to destroy both private weatlh and personal rights, it drives me to store more and more of my wealth i forms that are secure and out of its grasp, like physical gold and electronic money. If the US government fully respected the limited and enumerated powers in the Constitution it has exiled, then I wouldn't have to do this, but our government has become a self-serving Leviathan that knows no limits.
"If the US government fully respected the limited and enumerated powers in the Constitution it has exiled...."
Constitution is just another piece of paper.
I have no problem with fiat currency or whatever in the presence of sound money policy.
Bitcoin has happened before. Best to study past examples before declaring the demise of GI currency.
Can you fill sand bags with Bitcoin? http://shutupnsing.wordpress.com/2013/04/02/the-pirates-of-the-new-world-order/
turn lead into PUSSY and then you can have all the gold you want
turn lead into GOLD and you can have all the pussy you want