A “Bitcoin” is a molecular magnetic field on a computer memory. The “Bitcoin System” allows a person to purchase one or more Bitcoins for fiat money and to move the purchased Bitcoins around the world, from one computer to another, free of interference by any governmental agency and independent of all banking systems.
Those who promote the Bitcoin System sing the Bitcoin’s praises as being a money that is free of any interference or influence by any government agency or monetary authority, and the owner’s Bitcoin property is known to no one but the owner. Secrecy and privacy are the Bitcoin’s great merits.
To enhance the desirability of the Bitcoin, its promoters have engaged in fraudulent advertising. They present the totally imaginary Bitcoin on the Internet as a pile of shiny gold-colored coins labeled “Bitcoin”.
The deception is calculated to have prospective buyers of Bitcoins and actual “owners” of Bitcoin balances think of these brassy, gold-colored coins when dealing in Bitcoins, thus confusing them with images of non-existent coins. The promoters want the public to associate the imaginary digital Bitcons with something tangible. This is most certainly fraudulent advertising.
Additionally, Bitcoins are promoted as free of inflationary risk, for the fanciful reason that the Bitcoins are “mined” – evoking the strenous labors of gold-miners in their dark caverns – by specialists who must rack their brains to “mine” Bitcoins and produce new, additional digital Bitcoins to contribute to the Bitcoin System as their property. The idea is to enhance the value of Bitcoins because they are very hard to “mine”. The fact is, that scarcity does not necessarily make a thing valuable. Nor does the work involved in “mining” them give them any value.
The Bitcoin is supposed to be a great triumph of technology, which protects the rights of the individual to his property and privacy. But, does this make the Bitcoin a new type of money?
The answer is “No”.
There is a reason why the Bitcoin has obtained a measure of success: all Bitcoins are molecular magnetic fields on computers, just as all “moneys” today, in banks around the world, are only molecular magnetic fields on computers. So the Bitcoin is simply a new scam offering a new, self-proclaimed imaginary digital “money”, which is in competition with another huge, established scam also offering only imaginary digital “fiat money”.
The Bitcoin is merely a new-arrival on the scam scene, as an alternative to the established scam scene of exclusively digital fiat money in all the world’s banks.
For the time being, the established scam has the upper hand, because a) fiat money (in about 174 varieties around the world) is the “party in possession” of the perversion of the original system of real money, which perished in 1914, and b) people are accustomed to it, since they have been using it for a century.
You own Bitcoins? Have fun! You will be crying, at some point down the road, but you will be able to cry secretly and privately, with no one the wiser, when your dreams of secret wealth prove to be just that – dreams.
Way to completely miss the concept.
You can’t fix stupid.
That’s right Peter, Bitcoin advocates are really quite stupid and that can only be “fixed” by these sheep experiencing a major fleecing which is inevitable. Bitcoin is the latest fraud of the fiat world and that never bodes well for the sheep.NEVER
Ditto
Well I’ll ask you: How do I get some BitCoins? How do I pay for them? Oh with my local currency. Why would BitCoin want my currency which is worthless?
This is the biggest fuckin’ scam of the 21st Century.
I sometimes get the feeling Admin only posts articles about Bitcoin as bait.
I post articles that I think will create a debate. Refute his arguments. He’s a billionaire with a degree from Wharton.
“Refute his arguments.” Yeah, baiting an argument.
” He’s a billionaire with a degree from Wharton.” Born in 1932…
But I’ll give it a whirl anyway.
First, it’s not a “Bitcoin System”. It’s called the Blockchain which is the underlying technology behind Bitcoin. If it weren’t valuable why are bankers frothing at the mouth to trying to implement (with dismal result) into their system.
Throwing out the phrase “molecular magnetic fields” doesn’t make him right.
The reason Bitcoin is changing banking and money is because it’s the first currency specifically created for internet commerce. I can send Bitcoins around the world in 10 minutes. No other currency can move that quickly because of out date technology used by banks and the long list of red tape regulations impose by governments.
I’ve been working in Bitcoin for the past year and recently had my mother of all people ask me to set up a wallet for her. Her reasoning? It is easier to send money across the country than to use Western Union and Money Gram. These two entities have high fees for a system that barely requires any work.
The only thing stopping mass adoption of Bitcoins in my opinion is the convenience factor. But the currency is only 7 years old and has many phases to undergo. Anybody who is promoting its downfall so soon lacks imagination and innovation. We really don’t know how Bitcoin will evolve anymore than we could have predicted today’s internet in 1990.
I’m with Steph. People fear what they don’t understand. Max Keiser is all over Bitcoin like a wetsuit and I agree with his opinions most of the time, so chill and give it time. I haven’t dived in yet but I’m considering it.
Isnt everything in the universe just molecular magnetic fields? What economic storeof value doesnt use electrons?
And now there is BitGold !!!
Our mission is to make gold accessible and useful in digital payments and secure savings.
We’re advancing the digital payments revolution by helping people securely acquire, store, and now spend gold with unprecedented simplicity. BitGold accounts are free and can be opened in minutes. We provide users with a secure vault account to purchase and hold gold, the ability to make and receive instant gold payments, and a prepaid card for spending gold at traditional points of sale. Through our network of ATM’s customers can fund their accounts with local-currency. All gold bullion is fully redeemable as 1kg gold bullion bars or 10g GoldCubes®
BitGold takes transparency and accountability seriously. Learn more at Transparency Buying Physical Gold.
https://www.bitgold.com/
While gold and pm’s are good stores of wealth and can function well as a local currency, they are limited to person-to-person trade. If you want to buy anything online via gold, you either have to mail the gold or use an intermediary, and as soon as you use an intermediary, you’ve lost control of your money. Bitcoin is the first money that allows person-to-person transactions across the world without interference. That’s where it’s true value is derived. Some people get it, some don’t.
Personally, I really like Bitcoin in concept. The issue of course, is that currency has value because of one thing and one thing only: CONFIDENCE. This INCLUDES precious metals (although one must admit they have a very long track record). Confidence, in turn, can be measured in a number of ways, the two most important being acceptance and velocity. Currency must be widely accepted and they must move with fairly stable and healthy velocity. One thing Bitcoin has is that it will never die a hyperinflationary death, a exponential spike in velocity…no, if it dies it will because it stops circulating, ie velocity goes to zero…a deflationary death.
So, when asking whether Bitcoin will have value in the future and widespread use comes down to predicting the bulk behavior behavior of unstable, neurotic, whimsical, silly, selfish and easily fooled skin-bags…more commonly known as human beings.
Fuck if I know.