Cryptocurrencies: The Unfolding Fiat Digital Scheme

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Cryptocurrencies: The Unfolding Fiat Digital Scheme

Posted with permission and written by Rory Hall, The Daily Coin (CLICK HERE FOR ORIGINAL)

 

 

The feature image below is a depiction of Satoshi Nakamoto. We think it’s the person in the middle, because he looks “active” but we’re not sure which image was tied to “him” so we just used several. You can decide which image actually represents Satoshi.

 

When I wrote the three part series detailing how the banksters could potentially unleash the next level of enslavement through cryptocurrencies I hadn’t even discovered ACChain. Two months later we find out that ACChain is unfolding right now – it is here and it is growing, daily. Quantum computing is here.

 

 

Now we find that some of the most respected voices in the alternative economic/financial analyst space are turning towards a new type of illusory, fiat wealth and proclaiming it will “save us from the banksters”. The magic bullet has arrived and we should all jump on board. Sounds like something a bankster would hope we would do with their latest pile of derivatives nonsense.

 

 

A ghost, “named” Satoshi Nakamoto developed bitcoin – no one knows if this is a person, a tadpole, a group of people, a space alien or an NSA/CIA operative, but, it is accepted, on blind-faith, that it is a person, a man of Japanese origin. This story, which is akin to a fairy-tale because it is only a story since no one has ever seen this “person” or provided any photographic evidence or any published works outside of the bitcoin illusion. I am supposed to believe “he” gave us the keys to the kingdom that will “save us from the banksters”. Is this the story that I am supposed to believe and place my family's wealth and security in this mechanism? Seriously?

 

Andy Hoffman, during a recent interview stated he “will never do another interview with people that believe in conspiracy theories” while he, and all the other bitcoin fans, believe in the fairy-tale spelled out above. Never mind the fact the NSA, in conjunction with MIT, produced a white paper in 1996, spelling out how an anonymous cryptographic currency could circumvent the current cash system. This was a full 12 years ahead of Sat-on-sushi’s white paper explaining bitcoin. Never mind the fact, as The Daily Economist pointed out, Satoshi’s white paper just happened to hit the wire during the 2008-2009 economic meltdown, actually being released on Halloween 2008. Personally, I gave up on coincidences decades ago.

 

In 1996 the NSA (that’s right, a government agency) published a White Paper titled, HOW TO MAKE A MINT: THE CRYPTOGRAPHY OF ANONYMOUS ELECTRONICCASH. And in this white paper, analysts and researchers laid out the entire breadth and scope of replacing cash and other fiat currencies with a completely digital one, based on anonymous cryptocurrencies.

 

And they did this 12 years before the anonymous ‘Satoshi Nakamoto’ published his/her White Paper on the very eve of the financial collapse. Source


If an alternative economic/financial analyst states that a fellow analyst’ work is “a dime a dozen” [at the 28:20 mark] that doesn’t really shine an appropriate light on the entire community. Most everyone is doing the best they can to present factual, alternative viewpoints and analysis that dispel the continual stream of lies, deceit and propaganda we are sold as truth by the mainstream media. Not really a confidence builder when we are discussing our wealth and the financial security of our families. To attack one is to attack all, including the one speaking. I feel the work I do is worth far more than a dime-a-dozen.

 

One of the more disturbing revelations over the past several months is how once tried and true hard asset advocates have suddenly become a voice for a new digital illusion of wealth. Cryptocurrencies “value” are derived from the fiat currencies of financial enslavement like the Federal Reserve Note, Japanese Yen and Euro. I must have missed something along the way as I have been under the impression these were completely worthless scripts, printed out of thin air and backed by nothing more than “faith and credit” – translation – “faith means you believe in something that can not be proven and credit is the ability to take on more debt”. Dave Kranzler explained this to me one day and it seems to fit pretty nicely.

 

The first question Sean asks during the interview is – “What is our cause?” For me, this is an extremely important question. One that each of us should ask ourselves everyday, especially, the people discussing economics, finance, money and currency with a wider audience.

 

I am so sick of FUD [fear, uncertainty, doubt]. I am so sick of conspiracy theory. I am so sick of BS that goes on. It stops the ability for people to save themselves with honest money and the same goes with bitcoin. I’m not proselytizing. I’ve been the one bridge between precious metals and bitcoin. I follow the bitcoins saga for; I’ve been an owner for two years and learned as much about bitcoin as I have about precious metals and I understand how it works. I don’t need to watch a video to know it’s ridiculous [referring to the interview with SGTReport and Lynette Zang about ACChain].


If a person builds a financial bridge, a safety-net, and one pillar of this bridge is a digital illusion, backed by faith and credit and the other is money – actual money, not fiat currency, how stable will that bridge be once it is complete? Gold is money and everything else – everything else – is credit. “Everything else” would include bitcoin or any other cryptocurrency not backed with physical gold and even gold-backed cryptocurrencies, in my opinion, are suspect.

 

Before you listen to the interview below, please take time to listen/watch, if you haven’t already, to John Titus’ All the Plenary’s Men. Titus’ work explains, in great detail, how these criminals get around international law, local law and national laws, including the Constitution of the United States. This may be an important piece of information to get a glimpse of what is happening in the background before one can truly understand what is happening with cryptocurrencies. If one doesn’t understand how the money-masters can commit financial crimes against humanity, how can one understand how to protect oneself from these current and future crimes?

 

 

Here is a video introducing quantum computing, not only really well done, it details how these bankster scum are digitizing everything – today, – not sometime in the future, but today. In the time that it takes to watch this video there will be another piece of the puzzle put into place as these tools of enslavement take another step forward. It appears these criminals are working 24/7 to build this system out as quickly as possible.

 

 

Since when did profits come before people? Ever since the bankster scum made it so. It is unfortunate that some of the people that I used to truly respect have picked up an illusionary flag that, in my opinion, supports the system of enslavement we currently have in place and will take it to the next level in which there will be no escape. We need to return to sound money and move away from illusions. We already have plenty of illusions running our lives.

 

 

 

Questions or comments about this article? Leave your thoughts HERE.

 

 

 

Cryptocurrencies: The Unfolding Fiat Digital Scheme

Posted with permission and written by Rory Hall, The Daily Coin (CLICK HERE FOR ORIGINAL)

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Weirdly's picture

Bitcoin is not fiat.  There is no authority declaring the value of bitcoin.  Bitcoin has value because market participants give it value. 

Bitcoin was not released on the, "eve of the financial collapse." The $700,000,000,000 bailout was October 3, 2008.  Bitcoin was released 4 weeks later.  Congress passed the bailout against the wishes of the people. 

Here we are today bitcoiners are saying diversify a bit into bitcoin and gold bugs are still gold bugs.  You can bring a horse to water but you can't make him drink.  

Victor999's picture

Five technical movements and one political process are in process simultaneously.

 

1.  Cryptocurrency development - developing the concept of cryptocurrencies and testing them through growing cryptocurrency groups - think Bitcoin, Ethereum, etc

 

2.  Blockchain technology - whilst today cryptocurrencies make use of blockchain technology, full implementation of the blockchain will effectively digitise everything of value, including services, food, medical, asset management, and so many more.  ACCHAIN is at the forefront of this.

 

3.  Quantum computing.  Digitising everything will require massive compute power as the Internet of Everything is born.  Quantum, cloud and other forms of computing will meet this need.

 

4.  5G wireless networking will connect everything with great throughput.  All now electronic devices will be made with the ability to be plugged into this global wireless system eventually.

 

5.  Wireless electronic implantation device development that will effectively allow humans to send and receive electronic signals enabling human digitisation

 

6.  The political process is the pressure international bankers are putting on governments to convert to a cashless society.

 

At some point in the intermediate future these six movements will converge and integrate.  When they do the infratstructure will then exist for each and every human on the face of the earth to be plugged into the "Matrix".  After being plugged in, you will not be able to buy or sell anything 'off the grid' as everything is digitised.  If you want to grow your own food, you can't because you can't get the supplies.  You won't be able to access fresh water because that service is also digitised.  You won't be able to buy a gun (or more importantly, ammunition) because it has been digitised.  You won't be able to get medical attention or prescriptions without going through digitised processes.  If you are plugged in and you misbehave, a simple flick of the electonic switch will cut you off the grid and you will face immediate life-threatening withdrawal of all services.

 

If you believe Bitcoin and the like is being developed as a way around the banks, think again.  If you think the Internet of Things is a good thing, think again.  If you think getting hold of cloud computing is convenient, secure and harmless, think again.  The elite of this world will never tell you the truth.  They will instead let it creep up on you and catch you unawares and too late to respond.

 

1984 doesn't even begin to explain what is coming next.

PumpherDumper's picture

Cryptos are not fiat.  Fiat is currency as declared by a governing body.  There is no governing body over MOST cryptos.

Gold is money. Period.  It is a wonderful store of value.  It sucks as currency.  Same for Bitcoin.

Too many arguments here for either/or.  Why not use both?  I do.

I have bought NINETEEN monster boxes of silver with crypto.  That is REAL value.  Just like in the real world diversifying your position has never been wiser.

Stack your PMs.  Hold them.  Acquire cryptos.  Get ready to cash them out when the time is right... except for Bitcoin.  Hold that thing it is going to 5 digits, and soon.

Spaced Out's picture

"one pillar of this bridge is a digital illusion, backed by faith and credit and the other is money"...that government can, has and will confiscate whenever it wants to.

Clownish, uninformed article.

conraddobler's picture

The entire saga can be distilled down to Wylie Coyote vs the Road Runner.

You are either one or the other and often times in life things flip back and forth.

The regular guy wins by not playing the game, once you play it's all over but the charge off the cliff.

Crypto currencies are like painting a tunnel on a mountain.

Let us review.

All power comes from the end of a weapon, we can now update this as guns have been largely usurped by large ballistic missiles.

When you have a ton of these then you can tell other people what to do or vaporize them. Everything else is all noise.

The bankers correctly surmised that all they needed to do is buy off the guys who have their fingers on those buttons.

These same dudes are not going to be outdone by someone who invents something like a new currency that all of a sudden ends all their thousands of years of nefarious planning.

You have got to be shitting me that anyone thinks this is even possible.

If it were possible no one would have ever heard of crypto currencies because the inventors would of had unfortunate nail gun accidents 5 seconds after their initial success.

How fucking stupid do they think we are to think we could believe that a cabal that's been thousands of years in the making, that owns nearly everything, could be brought down by something like a flash drive?

Oh for the love of God.

roddy6667's picture

Why does every article I read about BitCoin sound like every other pump-and-dump for penny stocks that ever arrived via email?

If they make a Part II of "Wolf Of Wall Street" the guys in the boiler room will be flogging Cryptocurrencies, just like this article.

androkles's picture

Yes, Sprott Money needs money. He's been around for years.

*from the land of tulip mania*

 

TheEndIsNear's picture

The guy who runs the SGT website is a fool. He says that he can digitize anything he wants, and that may be true. He can "digitize" my house, my wife, or the gold in my vault to his heart's content, BUT if he tries to come an take it from me based upon his "digits" the only thing he will get is lead; ie, several lead bullets through his head and torso.

Clock Crasher's picture

I  get the same feeling. SGT report; E-begging and buying stocks like First Majestic somewhere in the mid teens after it had already 5 bagged, now pumping bitcoin after she has what.. 20 bagged?

Notarized paper deeds and paper ballots for elections and banked gold money with paper certificates for daily transactions.

High technology for communications, navigation and research.

This crypto currency fad makes me sick. Bitcoin is literally a string of code that gaming graphics cards produce.  World of Warcraft gold priced to perfection.

Another sign planet Earth has gone Full Retard.

Clock Crasher's picture

If I am going to have money online its needs to be physical gold that is banked by Brinks with a secure cryptographic ledger in which the ledger is physically printed on paper as a back up just in case.

Hence GoldMoney.com

I expect Bitcoin to blow through 5,000 maybe 10,000 (I doubt it) then degrade back to single digits over the next decade.

The Gold bull market will come. Maybe not this year or next but it will arrive. Upon arrival the miners and spot price will shock the world. Think about it.. all these Gold bugs like Bix Weir and Andy Hoffman and many others jumped ship. No one believes in Gold and their derivatives. Sentiment is in the absolute shitter. This is classic shake out the weak hands and leave them behind in the waste bin of history.

Gold is not accepted as payment for taxes and no-one owns  gold.  The 1933 confiscation argument is null.  I believe zero People were prosecuted for failure to deliver during that time.  The savings of America is what was being confiscated.  As it will be confiscated this time.  This time savings is not in the form of Gold.  It is in the form of digital entries in the balance sheets of the clients who participate in loaning their savings to the member banks of the Federal Reserve; JPM BofA Citi et al.

Bitcoin is fiat. period.

Gold is money. period.

Have you seen global central bank gold reserve accumulation graphs lately?  A decades mission to stack 30,000 tons of physical cash money (that means physical Gold). 

These pump and dump schemes are not new.  In the book Reminisces of a Stock Operator Jesse Livermore was hired by one of the trading firms on Wall Street to trade their way out of a pump of dump scheme (this is back during the Roaring Twenties, the firm realized a bear market was manifesting and they had been hoarding shares of a stock and accumilated, to their horror, a massive position which they needed to dump before the broader market crashed.. or something like that).  Their position was too massive to just dump on the market.  So they contracted Jesse Livermore who had the skill set to unwind the position without imploding the underlying stock in a way as to maximize returns and minimize losses as the selling would mathematically result in price decline.  It is my opinion that this practice continues today.  I am suspect that something like this may be occurring in bitcoin.  We know the 10% remaining day trading junkies (who are not AI computer programs but flesh and blood humans) employed by Wall Street, who are good at what they do, who have deep pockets and big bonuses, use their large cash positions to trade in and out of Bitcoin systematically to maximize  gains.  Questions are how many of them are participating and how many of them are hoarding and what duration of time will they hold until liquidating and rotating into the next pump and dump scheme?

 

Silver Savior's picture

I want to be saved from banksters so that's why I buy Ripple xrp a bankster coin. The thinking goes when this whole system of blockchain is mature by that time the banksters will have made Xrp a very valuable coin and I will get all the money from my stolen future and past back and more!

I will then transfer it into precious metals.

joego1's picture

The whole world is based on just in time supply systems backed by shitloads of energy munching server systems. I live in a rural area and one fiber cable was cut by a back hoe and nobody could open their cash drawer and make change. The fact that bitcoin is mined by mostly Chinese in a energy hungry server farms in Mongolia should make people wonder how robust the whole system is. Compounding it is the fact that normally people just swap bitcoins and other cyrptos for fiat for the most part. It reminds me of the Comex. This is just technology layered upon technology. The fact that Mnt. Gox went bust with 60 million of other peoples coins, which would now likely be worth billions, should give one pause. Fraud could easily be built into this wild west of cryptos just like the PM markets and it most likely already is. My model of the world includes a financial reset which would likely include much of the infrastructure in place to support cryptos and so for now I'm not interested. That is not to say I wouldn't buy into companies developing the technology for it all. We all know that in the long run the jew bankers and the governments of the world will control this technology in the end.

Weirdly's picture

Don't invest in gold because Tulving went bankrupt and stole $25,000,000.

tangent's picture

Bitcoin is still doing 3 transactions a second until at least November when it will increase to maybe 10. The VISA network does 2,800 transactions per second. Bitoin market cap is roughly $70 billion. That gives a current implied value to Bitcoin of $20 trillion when it can and does do 2,800 transactions per second. The numbers don't quite add up properly. My money is going to go into Ethereum and other crypto that can process more than a joke's worth of transactions. The fact is if Bitcoin fails to adapt side chains, and there is no reason to believe it will, it will be a minor player. 10 transactions a second is child's play and not worth consideration as a multibillion dollar venture.

Infnordz's picture

You just don't get it; this is still early days for crypto-currencies, they'll eventually replace most debit and credit card transactions, and seriously flawed intermediaries like Paypal, in part because of much lower risk and transaction costs.

I own PMs and was a sceptic of BitCoin, but am not any longer, so I am preparing to use it properly i.e. I already have a dedicated secure h/w wallet supporting multiple coins, not a dubious cloud one!

PMs are fine for insurance but are useless as currency in most shops, for security/platform reasons, so you need currency, and distributed (proper scaleable like BitTorrent), blockchain, and cyptographicaly secure currency like Bitcoin looks far better than the digital (inflating, fraudulent, fractional reserve) portion of fiat currency (only really backed by state violence and compliance), and the parallel, no reserve, fraudulent credit card debt.

Most currency is digital, and state currencies and debt proxies like credit cards are piss easy to track, and because they use centralisation and pretty-crap/no cryptography, they are not securely scaleable, and the providers already unfairly financially blockade some merchants and service providers due to corrupt political pressure, some of whom I now want to do business with!  PCI-DSS etc. is a crappy hack and we still see loads of people made financially vulnerable to virtual thieves because card transaction records still include incredibly retarded reusable card numbers rather than cyptographic transaction tokens!

We should still keep physical cash to discourage banks from doing more theft like negative interest rates, but for online use where I don't need the protection of credit card chargeback, I'll be looking at using Bitcoin; I may even discard credit cards if trustable payment escrow services become available and an option for relevant transactions.

Silver Savior's picture

Being in crypto currency I don't like Bitcoin at all. It's un appealing, very expensive, very slow and it takes a longer time to double your money. My alt coin doubled my money the other night. It's all just the name. Bit coin is a name brand. A lot of people like spending more to buy name brands but not me. Bitcoin is all cost but what does it do? Makes me wait an hour to fart around before I can use it.

OpenThePodBayDoorHAL's picture

LOL, "sidechains", LOL "offchain"

We already have "sidechains". It's called "banking".

What is the actual point if all transaction activities are not on the ledger? We already have that.

And LOL, Bitcoin 'scaling". 

Whenever you hear the word "blockchain" replace the word with "database" and then ask why you would use blockchain instead.

Apache Cassandra: Data is automatically replicated to multiple nodes for fault-tolerance.; Fully-decentralized: There are no single points of failure. There are no network bottlenecks. Every node in the cluster is identical. Some of the largest production deployments include Apple's, with over 75,000 nodes storing over 10 PB of data, Netflix (2,500 nodes, 420 TB, over 1 trillion requests per day), 

DjangoCat's picture

Tough crowd here tonight.

IMO this article is an attempt to spread FUD and thwart the inevitable adoption of distributed decentralised crypto as the future of money.

There is a reference in the previous comment by the Borg, to the potential "Borg" quantum computer attack on crypto.  The Borg is more accurately represented by the Bitcoin network itself.  

Resistance is futile.

DC Beastie Boy's picture

There's other cryptos that are not Bitcoin.  Acutally, most are not these days.  The new tech has moved away from SHA256 hash and into other blockchains, sidechains, smart contracts, proof of work, proof of signature and hundreds of other tech and applications. 

I'm not so much interested in the currencies, but the applicatoins and if they actually do someting beside people speculating on the price up or down.

Oyster's picture

Reads like a hit piece on a competitor for market share in the "protect yourself" category of financial salesmanship. Sprott's biz must be having a tough time attracting new customers. Young people are not into precious metals at all. Cryptos aren't going anywhere. The best and brightest are working in the sector. Satoshi's anonomyity isn't a pitfall of cryptos; it's the opposite. His invisibilty underlines the importance of no central authority, no figurehead making decisions by dictate. I guess there is no expiration date on calls that cryptos are a scam. The scam talk will continue as cryptos contine to become more integral to all of our daily lives. Who knows what the price will be three years from now or ten years from now, but blockchain tech is here to stay. It's a new world. Adapt or get run over. Precious metals AND cryptos belong in your portfolio of assets.

Harbourcity's picture

Cryptocurrency fans are just sheep to the slaughter.  Suppress PM's until people give up hope then toss in the Bitcoin and let it spike upwards - draws in all the hopeless.  Let it run to dizzing heights and then slam it down.  Suckers!

DjangoCat's picture

I think two things have been holding down gold, and neither are crypto.  Crypto has risen partly because gold is being held down by other forces.

Firstly, the US seems to have been in a bind for 350 or so tons of gold they had to send back to Germany.  The Treasury wanted 5 (five) years to come up with the gold.  They have just completed the transfer ahead of schedule, approx 3 years.  The question is, have the Fed been holding down the gold price to permit the Treasury to buy up the 350 tons they did not have?

The other issue is China.  Jim Ricards maintains that the price is being held down by the banksters and central banksters to allow the Chinese to accumulate a respectable gold reserve so they can come to the IMF SDR table as an equal.  They are still stacking, hence depressed gold price.

In the meantime, crypto has rocketed and gold is cheap.

Belerophon's picture

The real story is far more interesting than Mr. Sprott even knows.

 

HardAssets's picture

Hoffman is full of it. I heard him admit in an earlier interview that he doesn't understand the details of how cryptos really work. (Who does ? Specialized math & computer science PhDs ?)

Like many PM gurus he's likely losing lots of customers and subscribers to years of metal smash downs. So they jump on a new horse. Fine, if you want to gamble. Just don't delude yourself & others that you're doing something different.

Hoffman takes it to a new level by dishing out vicious attacks on others, together with the b.s. That's a sign that his position is extremely weak.

el buitre's picture

Hoffman's interview with Sean outs him completely as the narcisstic, conceited, illogical asshole that he is.  I wouldn't purchase a junk silver dime from Miles Franklin that pays this creep.  Time will tell if Lynette Zang is right or wrong about AC Chain, but she is an intelligent lady and doesn't deserve this sort of personal abuse.  It pisses me off.

Weirdly's picture

What pisses me off is gold sellers like Zang pushing confiscation to sell their high markup gold "nuismatic" coins to new gold investers.  A 12-15% premium the buyers will never get back. 

tangent's picture

Only people who design and code a crypto currency know the details. That is it though. And even then, those coding the currency may not understand how the public key encryption algorithms work. Could Satoshi write his own keygen function as a variant from RSA? I doubt it.

MaxThrust's picture

extracted fron the NSA white paper:

In particular, the dangers of money laundering and counterfeiting are potentially far more serious than with paper cash. These problems exist in any electronic payment system, but they are made much worse by the presence of anonymity,

It would not surprise me if the NSA have already worked out a way to track people via the blockchain.

Collectivism Killz's picture

Oh wow, another anti-crypto article written by a bullion pusher who has cost people fortunes by promising 6,500 gold and saying mining stocks are a screaming buy. Hell, Sprott even linked to an interview with Lynette, another bullion pusher bashing cryptos, as though having both and believing in both is somehow not possible.

donomiller's picture

This argument that nobody accepts crypto currency is very weak. All a business owner has to do is walk into the store/office on Monday with his cell phone and declare "I accept crypto currency payment starting now". Done. Open for business

OpenThePodBayDoorHAL's picture

LOL

When all of the store owner's payables are in USD, and so are all of their receivables. And so are all of their invoicing, payment, taxation, and accounting systems.

LOL

Then he needs to store his BTC. The company that knows how to do this safely is Xapo. They buy servers from the factory; custody those servers to their premises; put on a source-code reviewed OS, then when the keys are on them the servers are taken to a bank vault 60 feet underground. The servers are never (not once) connected to the internet. And this, you say, is going to be the great new money for payments and commerce.

LOL

Silver Savior's picture

So when the dollar collapses how liquid will Bitcoin be? Not a lot of merchants take bitcoin. I know I will have no problem because I can go to provident or JM Bullion and buy gold or silver with it. I actually do want the metal too. 

I just don't know what everyone else will do with non liquid Bitcoin. Save it for later?

Oyster's picture

One can buy precious metals with bitcoin. Provident accepts bitcoin as payment, and they are one of the big boys. Many other PM dealers accept cryptos as payment for metals as well.

DjangoCat's picture

Good luck with your $5,000 gold coin.  Want change for that? uh, do you take potatoes?

Silver Savior's picture

That's why I only buy tenth ounce gold and already collected lots of silver and copper for the smaller transactions.

donomiller's picture

Very liquid. Any company or individual on earth with a cell phone can accept payment

SRV's picture

BC, the Money Masters give the store of value commercial crowd an alternative to gold, and even provide a blow off top to attract as many as possible.

I hadn't heard the NSA story before (assuming it's true) but have never bought the BC folklore... they always include self financing profit to their gold price suppression schemes, and it looks like a pretty good level here.

The people putting serious new money into it at this level will be torched... the market is so small these guys can put the price anywhere they want it.

Next step, BC futures contracts when the real fun begins... with 20:1 leverage it's child's play.

any_mouse's picture

And for International Trade, in Bitcoin, future contracts will be necessary. Hedging Caps risk for a currency swap in the future at time of delivery.

Unless Bitcoin becomes the accepted currency for financial accounting, a conversion from whatever the currency a corporation or entity uses for its books to Bitcoin will be necessary.

They don't like to buy the delivery currency now and hold it for future delivery. Exchange rates can change overtime.

Unless everyone can be forced to use Bitcoin as a single global currency. And who has that force to compel acceptance for the new world order?

DjangoCat's picture

Missing he point here SRV.  Leverage is the problem.  Bitcoin is not the ideal thing to borrow, it keeps costing more to buy.

MarcusAurelius's picture

Yes the price of gold can and will be manipulated. Of course this hasn't happened at all in the current crypto mania has it? Seems logical to me that something in digital with no way to know its true value should be priced at $4500 or more per coin. Amazon at 196x value is likely more of a bargain that is if you care to take such a chance and throw caution to the wind ignoring the fact there is no way Bezos can produce at 196x value. However I would gladly take my physical gold over a digitalized coin any day or an overblown stock. One makes some sense. One makes no sense at all. Good luck. 

fuckstar's picture

Don't be the last one out and you'll be fine, Mr. Ponzi.

AE911Truth's picture

Bitcoin represents proof of work like a bar of gold. Many miners operate at a loss; the cost of electricity exceeds the value of the mined coins at the time the coins are mined. Only after the coins later increase in value does the miner profit. One disadvantage of crypto-coins is the need for a computer or cellphone to transact. There are physical coins, but not in small denominations. Gold is superior in that it does not require a working computer and communications infrastructure to transact. One disadvantage of gold is it can be difficult to transport across hostile borders without detection. Bitcoin is superior in that with twelve words in your head, you can cross hostile borders with unrestricted wealth which cannot be seized.

Try sending a gold coin and a bitcoin to someone in Venezuela or the Philippines and see which one gets received. 

Which is easier to detect; fake gold or fake bitcoin?

 

NoBillsOfCredit's picture

People don't care about who Sitochi is because the code is open source. If you do not know what that means you have no business making recommendations for others about crypto money. THe author of the article makes the postulate that since Satoshi could have worked for the banksters then his product is bad. That is akin to shooting the messenger. Also, money is NOT gold or Silver. Money can be MADE FROM gold and silver. The word "money" describes a use (store and transfer) for a thing (labr or "work"). The best things that have been used as money has been gold and silver as far back as we can remember but that does not mean that other things cannot  serve as money for mankind. AE911Truth has it correct. Bitcoin makes up for the failings of Silver and Gold money without displacing it. What failings? The failings of using gold and silver as the only money can be seen all around us. We would not be here if G/S did not need to be placed into the hands of bankers in order to conduct business over long distances and what have they done with th epeople's trust? Other problems like the changes in the supply of metal also affect the value of the gold and siver coin. Large discoveries of gold and silver deposits have had dramatic effects on the value of the coin in circulation. With Bitcoin, there will never be these huge changes in the quantity of specific Crypto Currencies. It appears that Bitcoin and Litecoin will be the king and queen of crypto currencies but we shall see. The market will decide.

The central planners's picture

Still its value relies on fiat. If fiat collapses, goodbye savings.

DjangoCat's picture

Rubbish.  

Bitcoin is traded in the USD/BTC pair, also EUR/BTC, CNY/BTC, ETH/BTC, BCH/BTC, MIOTA/BTC, gold/BTC etc, etc.

When fiat collapses, the other pairs will remain.

Bitcoin represents worldwide value, 24/7 convertibility.  Only the fiat pairs are problematic, due to banking resistance and problems moving fiat across borders.  

If the resistance in the fiat/crypto convertibilty gets really bad, I think you will see a much larger movement of people into the black market, reducing the taxable pool and strangling the already failing debt-based goverments and other debt-based financial systems.  This trend is only exacerbated by the current moves against cash in the EU, India and the USA.

As we see a general move into the gig economy and part time work, crypto makes way more sense than fiat, both for the employer and the employee.  Do you think everyone is a sheep?  Will they blindly and docilely follow the rules set by the regulators for the banksters?

Watch this space.

The central planners's picture

Are you stupid? I said cryptos are valued in fiat. EUR and Yuan are fiat. The other cryptos are also valued in Fiat if Fiat collases the only thing remaining are physical tangible assets everything else worthless.

any_mouse's picture

Cryptos are valued in terms of generally accepted fiat.

When and if all fiat collapses, there would be a hell of a lot of price determination going on for some time.

The central planners's picture

Nha they' just get a new fiat. But the point is that you can always get fiat with gold and silver but not always the inverse.