Author: gsbtc

Bitcoin, World Energy Use & Prospects For Growth

Time Magazine has defended the social viability for the spread of Bitcoin, proclaiming that “stopping the movement of [Bitcoin] will be possible only if countries are willing to impose harsh taxes and capital controls. Once alternative currencies are frictionlessly available on the Internet, every laptop will become its own Cayman Island.”

All sorts of characters have come out of the woodworks to take a swing at Bitcoin. As Bloomberg wrote:

Blockchain.info, a site that tracks data on Bitcoin mining, estimates that in just the last 24 hours, miners used about $147,000 of electricity just to run their hardware, assuming an average price of 15 cents per kilowatt hour … That’s enough to power roughly 31,000 U.S. homes, or about half a Large Hadron Collide Read More

Opportunity Cost: Silver, Bitcoin

Opportunity Cost: Silver, Bitcoin

Let’s say that at $49 you had 1,000 ounces of silver.  And you kept it. You’d have 1,000 ounces of silver, valued in USD denominated terms at $27,500.

Now, let’s say that anytime between then and now, you moved just half of that silver into Bitcoin. Let’s look at your silver, now, as insurance on your liquid funds via the bitcoin protocol.

That 500 ounces of silver could have been $15,000 in value to about $300,000 now.  That’s assuming a $10 bitcoin price…That could have been as recently as January, 2013.

Now, let’s say you traded back into silver now, with premiums on silver products rising in price now. You could buy about 10,344 ounces of silver… Read More

Bitcoin, The Hive & Spontaneous Order

An important question when pondering Bitcoin’s place in the world is this: is it a phenomenon of the hive or spontaneous order? Was it given by modern day philosopher-kings or did it rip through the cracks in the “boot stamping on human face forever” as an alternative to submission?

First things first, let’s learn more about the hive and spontaneous order.

Smart phones and social media have created the next step in technological collective consciousness.  More so than ever the individual is connected to friends, family and acquaintances 24/7. A constant stream of information informs us and is, ultimately, meant to guide, making more like the greater group.

The Borg is known from Star Trek, and is essentially a synonym of “hive mind” or “collective consciousness.” The Borg Collective is a civilization with a group mind. Each individual is not truly an individual, for they are linked to the collective by a sophisticated network. Today, this is known as the Internet, which ensures each “individual” is under constant supervision and guidance.  In fiction, this collective consciousness, known as the borg, allows the individual to “share the same thoughts,” and adapt quickly to defensive tactics used against them. We are today cybernetic organisms,  to a degree, thanks to our droid phones and so on.  The ultimate goal of borg society is achieving perfection and “resistance is futile.” Read More

Guest Post: Bitcoin: The New World’s Orders Plot For a One World Currency?

[Editor’s Note: The following post is by TDV Researcher, Justin O’Connell]

As a general rule, if anything is covered en masse by the mainstream media, then I tend to believe that which I am watching is actually one long promotional spot.

The same could potentially be said for Bitcoin as over the past months its popularity has grown so much that “anarcho-capitalist…Libertarian…Freedom Fighter against mankind’s two biggest enemies, the State and Central Banks,” Dollar Vigilante Chief Editor, Jeff Berwick, has been on CNBC, CNN, Fox News, and BBC, and other mainstream outlets.

What brought on this sudden attention? No, not our anarcho-capitalism, but our announcement of the world’s first BitcoinATM.

So, is Jeff just a patsy so that the New World Order can bring in a digital currency? I began wondering this myself, and I came to what I think is a reasonable conclusion.

What many skeptics fail to understand is that the so-called New World Order – with its global governance, fiat currencies and so on – has already, for the most part, been implemented on a global scale. Especially economically. For instance, 95%+ of fiat money today is digital, and it’s all based on the Federal Reserve System, thus creating one worldwide currency with lots of different designs on the actual notes supposedly representing the various cultural backgrounds of nation-states.

Despite nearly everything being digital already, there are mainstream technologies that go above-and-beyond, aiming to rule out the need for cash.

One particular app for this cashless society, above-and-beyond credit and debit, is called Square, and was developed by Jack Dorsey, Twitter’s co-founder. According to CNN, “this is a telltale signs that the mobile-payments revolution has arrived.” CNN writes, as anyone who has studied American consumers know, “changing the way Americans pay for stuff is going to be really hard work.”

But Bitcoin is turning out to be a force to be reckoned with. For instance, in comparison to long-time friends of the liberty movement, gold and silver, Bitcoin seems to have been the play to make over the past six months and beyond. For months, besides today’s drop from $150-$115, after running to $150 from $105, our charts over at Gold Silver Bitcoin have shown a bimetallic standard precipitously dropping relative to Bitcoin.

The CNN article surmises that,

“Paying by phone will be as transformative as the advent of the credit card in the 1950s. It will change the way we shop and bank. With powerful smartphones and tablets taking center stage on both sides of the checkout counter, it will reshape the relationship between buyer and seller. Not only will the phone or the tablet become a wallet for consumers, but it will also turn into a credit card reader and a register for merchants. Shoppers will use their mobile device as a coupon book, a comparison-shopping tool, and a repository of those unwieldy loyalty cards they carry from everyone from giant retail chains to the corner bakery. And your smartphones will serve as beacons that will alert a retailer when you walk into its store so that it can recommend products, show you reviews, or direct you to aisle five, where that beanbag chair you didn’t buy last week still beckons — and you can now have it for 10% off. You won’t even need a few singles to tip the valet or pay the dog walker, because they’ll take mobile payments too.”

This basically explains the Bitcoin experience. One big difference? While CNN assumes a central authority, Bitcoin does not. With big players like AT&T, Verizon, Visa, Mastercard, Google, Microsoft, and eBay’s PayPal unit investing in billions in digital payment solutions,  it is no surprise that the mainstream media is serving the idea to the public domain in kind and uncritical ways. One of their assumptions is a monopoly on the technology by some corporation friendly to compromising. While the mainstream press has been unable to ignore Bitcoin, it certainly has been critical of Bitcoin being prone to hackers. Sure, a great many people have lost bitcoins. But, imagine if the general population had to become their own banks. Most of them would get eaten right away by sharks in the economic waters.

The CNN article champions the ease of digital transactions, and the time saved. Bitcoin is surely faster:

“While this revolution will be powered by complex technology, its ultimate effect will be to greatly simplify things for consumers. Think about my experience at Grumpy. While I had to fiddle with my phone ahead of time — to upload my credit card to the Square app and to authorize it to talk to the Grumpy register — once there, the phone never left my pocket. All I had to do was order my cappuccino.”

The article portends that “a cashless future is more real than many suspect.” According to the global head of mobile at Visa, “financial institutions are going to have a big role to play.”

“We are, I think, on a precipice of some fundamental change in the way money is exchanged between consumers and businesses,” Rep. Shelley Moore Capito, R-W.Va., said as she opened the first of a string of hearings one year ago on cashless ways.

The Federal Reserve found that 12 percent of cell phone users had already made a payment through their phones, and almost two-thirds of technology experts surveyed by the Pew Center on Internet and American Life said they expected mobile payments to eclipse cash and credit cards by 2020.

But, Square and similar technologies are different from Bitcoin. Bitcoin has caught on with a younger generation that, as Trace Mayer once put it to me (to paraphrase), “grew up in a digital sea. [The younger generation] are fish in a digital sea, whereas the older generation are snorkeling tourists.” In other words, p2p technology is a concept in-and-of itself for the Internet-literate. That goes a long way to explaining its popularity.

As the late Bob Chapman of the International Forecaster asked about gold and silver relative to fiat, “where else are you going to go” in a time of ubiquitous deceit? Bitcoin offers yet another alternative to what I’ve coined a “rebel’s portfolio” already heavy in silver and gold.

The pseudonymous nature (read: not totally anonymous) of Bitcoin does associate IPs with wallets. But, the paper-trail is a more obtuse alternative to the traditional bank account. The Powers That Be focus intensely on record-keeping, the historical record shows this, and so any added time-cost for their zeroing-in on you acts as the new privacy.

The popular appeal of Bitcoin – its p2p foundation – is as simple as first-language to the younger generation. Trace explains this well. Max Keiser recently said that he called gold in 2008, and people asked “What if the government confiscates my gold?” To which Max Keiser responds, “What you should have been asking yourself is, ‘What if the government confiscates my bank account?’” He then goes on: “Since $5 per BTC I’ve been recommending Bitcoin and many of you asked, ‘What if the government shuts off the Internet?’” Max Keiser answers thus: “What you should have been asking yourselves is, ‘What if the government shuts down the banks?”

And so, there are fundamental differences between the digital payment technologies pursued publicly by TPTB, and Bitcoin. This is what caught the eye of so many tech-savvy and Austrian-minded individuals across the world, but largely concentrated in the US and greater North America. Now, with Bitcoin skyrocketing from $9.31 last Fall to $150 today, the power of the Internet has never been clearer.

Bitcoin is a bet on the Internet. And, if you read our recent TDV Homegrown issue, you might have learned something about the Egyptian experience with a government using the “internet kill switch.” I wrote:

“Over one year ago, the Egyptian government cut off approximately 88% of the country’s internet access. Here is what happened: The government owned the biggest Internet provider in the nation, and only had to contact a few other companies to make this happen. The government ordered the shutdown of nearly all Internet access within Egypt. Ninety-three percent of Egypt’s networks went down. One of the only connections to the Internet that was not blocked belongs to Noor Data Network, the ISP used by the Egyptian (stock) Exchange.”

I then went over some of the ways Egyptians worked around this Internet shutdown, as well as the likelihood of it happening in the US. The conclusion of the article was bullish for the Internet, for the Internet is a vibrant and evolving system. It is crucial to everyone’s way of life, and we see this with centralized and decentralized payment solutions. The Internet will continue to be defended by its users and impinged upon by its self-appointed overseers. It’s a battle in which any Dollar Vigilante would delightfully indulge.

[Editor’s Note: News of Jeff’s latest Bitcoin venture along with a list of Bitcoin-related business opportunities are in the pages of the latest TDV Dispatch, which is available only to subscribers. To learn more about becoming a TDV subscriber, and getting access to more in-depth analysis and actionable ideas, just click here now.]

Currency Wars Ramp Up As BRIC Propose Global Fund a la IMF, World Bank

The IMF and World Bank sit across the street from each other, facing each other, in Washington DC.  They were set up as institutions of the Bretton Woods Monetary System which ended in August 1971. These institutions have taken taxpayer money from western countries like the US and UK, to restructure so-called Third World countries. Along the way, the former First World has grown to be more like the Third World, and vice versa. This has resulted in a synthesis, the Third Way, or, as it is sometimes referred, the globalization of poverty. Read More

Cyprus Government Stealing Depositors Money for New Brand of Austerity

buy gold silver bitcoin

www.goldsilverbitcoin.com

 

With the world watching the new brand of banking austerity taking place in the tiny island of Cyprus many will not see the United States’ own version of austerity.

The Senate on Friday voted for what has been called the “Amazon tax” which allows states to tax businesses outside of their borders. The tax received very strong bi-partisan support in a congress not known to work well together.

While the legislation is non-binding, meaning that the details of the new tax will have to be hammered out in subsequent legislation, “Brick and mortar” companies are hailing the passing of the new law, as now they will not have to adapt to the changing economy.

Interestingly enough, the bill was passed with the help of 26 free market worshiping republican senators. Of course the mantra behind the passing of the bill is that it will help local small business owners compete with larger competitors. This of course will not work any better than central banking has helped to create jobs.

With the ongoing wealth confiscation developing in Cyprus, the U.S’s desperate attempts to siphon off as much wealth from the people as possible should not go unnoticed.

While the world is watching what a corrupt bankrupt government is capable of, they may not notice the noose that is ever so slightly being tightened around the wealth producers necks here in the United States. Austerity is going worldwide. The U.S only has one advantage in that its time is farther down the road.

With these kinds of austerity measures occurring it is no wonder that gold silver and bitcoin interests are at all time highs. While the metals haven’t got the assistance that it should’ve with this government-sanctioned theft, Bitcoin has certainly shown well.

Gold and especially silver’s time will certainly come again as banker theft becomes more blatant in the mist of the ongoing world financial meltdown. Look around to see what is ahead. The banks have shown their card. It is time the people showed theirs by moving their wealth outside the banking larcenists hands and moving it to hard assets instead.

 

Sorry, But Maybe You’re An Idiot: Bloomberg Says Bitcoin Is Not A Currency

Bloomberg reports today that Bitcoin is not currency. There is nothing wrong with this assertion, other than the reasons submitted where fore are based on the baseless. But, before all that, I’d like to say that, no, Bitcoin is not just a currency. Bitcoin is not merely money. Bitcoin is something totally beyond the scope of monetary history. For 7000 years since the official discovery of silver, man’s monetary exchanges have been on a course for total centralization. Maybe you’ve learned about it in church as “The Great Work.” Maybe you heard about in your history books in school as “progress.” Or, maybe even more recently, you’ve heard about this tendency towards mandated centralization known as the “New World Order” via the “web.” Read More

Cyprus Steals Bank Depositers Money. Not if You Have Gold Silver Bitcoin

Citizens of Cyprus, known as Cypriots, are finding out that their duly elected representatives have now sanctioned theft of their private bank accounts.

President Nicos Anastasiades first proposed the wealth confiscation this last Friday. Under his plan, parliament would levy a 6.75 % tax from all bank deposits of 100,000 Euro or less and 9.9% on bank deposits of more than 100,000 euro.

“The solution taken may be painful, but it was the only one” worth taking said President Anastasiades in regards to his proposal.

This is the first time that the IMF and the Eurozone have actually dipped into people savings accounts. It is the next stage in austerity that is affecting the world as the banking plunder continues.

The purpose of banking holidays is to stop any runs that my occur on a bank by holders that fear the bank will not be able to make good on their deposits or for people getting their money out before it is revalued.

Cypriots are making every attempt to avoid this new tax by going to ATM’s throughout the county to withdrawal as much money as possible. However, with banks in the country being closed, it is unlikely that depositors will be able to get any sizable amount of their money out before it is too late.

Holders of gold, silver, and Bitcoin in Cyprus do not have this problem though as they have hard assets in their possession at any given time and can use those assets to barter and trade with.

For everyone else it seems that they will have a portion of their wealth taken from them because they choose to have their wealth in the wrong currency. With all government in the world facing fiscal crisises like Cyprus sometime in the near future, this brand of wealth confiscation will evolve and continue. Hard physical assets do not have this problem.

Gold Silver Bitcoin “it’s your choice”

The Intrinsic Value of Bitcoin.

Bitcoin has gone parabolic in the Headlines.  Perhaps it is because of Bitcoins recent rise of over 200% percent since September of 2011. To be honest Bitcoin has not gotten the credit that it deserves. Among the Old Guard of the sound money champions, the biggest point of contention that they have with Bitcoin is that it has no “intrinsic value”. Read More

Gold, Silver, Stock Market Disinterest Helps Bitcoin

The markets are in the midst of what will be remembered as a renaissance from paper-crack gamblers, especially the variety who only made money when the indexes, like the DOW, were up day-in and day-out. And they have been. If you are a devout paper addict, you’ve been doing great for the past month. Yet, despite the all-time highs and record winning streaks, people aren’t interested in the stock market. Just as everyone knows each politician is compromised or corrupted, so too will the markets give way to dizzying flash crashes or tumult in the Euro zone and eventually North America. All this in the wake of the 2008 banker bailout has driven the retail client out of stocks. Most of the people with money these days are heading out of paper, into real estate again or precious metals and other safehaven plays. Nobody trusts the stock market, for it is rigged and in the favor of the monied. Read More

Global Political Awakening & Bitcoin

 For the first time in human history almost all of humanity is politically activated, politically conscious and politically interactive… The resulting global political activism is generating a surge in the quest for personal dignity, cultural respect and economic opportunity in a world painfully scarred by memories of centuries-long alien colonial or imperial domination… The worldwide yearning for human dignity is the central challenge inherent in the phenomenon of global political awakening… That awakening is socially massive and politically radicalizing… The nearly universal access to radio, television and increasingly the Internet is creating a community of shared perceptions and envy that can be galvanized and channeled by demagogic political or religious passions. These energies transcend sovereign borders and pose a challenge both to existing states as well as to the existing global hierarchy, on top of which America still perches
Read More

Peter Schiff On Gold, Silver & Bitcoin

GSBTC: Hello, who are you?

My name is Peter Schiff and I am in the investment business. Read More

Against A Gold, Silver or Whatever Standard

There’s no point in waiting around for an official  gold standard to arise. People can start their own governments in a world of competing currencies. But if their governments are not some of the best and freest institutions that have ever existed, they will fall to the lonesome wayside, no doubt. They will be out of business. Read More

Namecheap Accepts Bitcoin

Yet another website has announced their acceptance of Bitcoin: Namecheap, the webs’ top domain buying service, now accepts the digital files for their services.  The company had been in works to begin accepting the currency for some time. Namecheap has served more than 1 million customers. Their statement went as such:

Bitcoin March 2 Pullback By The Numbers

March 2, the Mt. Gox chart shows a price fall from about $34.80 to $33.15. During this selloff, 22,000 BTC or 6.1 of the BTC supply were sold in one hour. That’s about $748,000 sold off in one hour moved the price 4.75%.  Are these the signs of weakness in the underlying Bitcoin price. While any investor will tell you that what comes up must come down, most mainstream investors, when discussing Bitcoin, cite this as a reason to stay away from BTC. But, BTC is much more than a mere speculative instrument. Rather, it is also a transactional unit. So, weakness in the price should not scary anyone off, unless you are overbought and speculating your life away. This is something that was experienced with silver purchasers in April 2011. Those unfortunate souls were dubbed the “49ers.” Here is what silver blogger Silver Vigilante wrote of the waterfall in silver and the ultimate devastation:

The silver market has been battered by the psychological warfare of command-and-control economics. This economic warfare has been psychologically exhausting for the silver investor as silver remains a no-news market with short-term bearish price movements. Over the last year, however, the silver investor has become hardened or acclimated to a market without new buyers or new sellers and little legitimate price action. Instead, they’ve watched as banks colloquially known as “commercial hedgers” bluff a long, long position in physical silver with shorts exceeding three-times the yearly supply at any given time.  What’s likely is these banks do not own any a position of physical silver anywhere near this amount.

 

For the 49er (those who bought silver in the 40s), who entered into the market in March-April of 2011, the price of silver has been a source of discomfort if not inner-turmoil. Retail bullion shops across the country started to provide services outside their previous jurisdiction of bullion slinging, working for several weeks after the May Drive-By Shooting as therapists and counselors. That price action in the Spring of 2011 was such to entice a whole new breed of silver investors – the 49er  – into the market, only to subsequently discourage them and break their confidence that, perhaps this once, they made the correct investment decision.

While Bitcoiners have experienced similar destruction in their market, with the market metastasizing, there is one phenom that has not fully realized itself in the Bitcoin price – price management. Currently, the mechanisms are not in place for major bankers or individuals or organizations to manipulate the price of Bitcoin, but one can imagine that there is some interest in doing so. Silver Vigilante touched on this this weekend in regards to CoinLabs’ creative innovations:

You think Bitcoin price above silver price has not been acknowledged by High Finance? It’s likely, contrarily, they know what’s going on, and they are not pleased with this new p2p currency stealing headlines, allowing the entire world to ignore fiat in real time, now, today. Nothing short of a 51% attack on the network can allow them to control the price.  The dominant financial system must protect itself from $100 Bitcoin prices as large-scale investors move into the market. Marketing this new advent as a bank, the place to store your Bitcoin, the Bitcoin community has to acknowledge that the Powers That Be will need a mechanism (bank/exchange) to control our beloved BTC price.

But, Bitcoiners scantily need a reminder of The Powers That Be, as based on a demographics survey recently conducted by  Spacedruid, the demographics of Bitcoin look like this:

  • 31.7 year old libertarians/anarcho-capitalist (although 30%
  • top motivations are curiosity, profit and politics

As a savvy bunch, Bitcoiners realize the strengths, and perhaps, the weaknesses of their p2p file. The interesting part is that, while living outside of the dominant financial system, Bitcoin exchanges, where Bitcoiners store their value online in hot wallets, have been victimized by fraud. Those storing their wallets in cold storage mediums have not had so much to worry about. As with any form of freedom, a great deal of responsibility is quite important to the equation.  However, one possibility that many have not swallowed, is the eventually entrance of control mechanisms into the price of Bitcoin. As Murray Rothbard said: “government is powerless to create money for the economy; it can only be developed by the processes of the free market.” But, at the same time:

“Money…is the nerve center of the economic system. If, therefore, the state is able to gain unquestioned control over the unit of all accounts, the state will then be in a position to dominate the entire economic system, and the whole society.”

The Powers That Be cannot come up with cashless payment solutions and brandish them as a safer, mainstream Bitcoin. The Bitcoin community does not like strings attached. So, whatever you Silicon Valley brains are up to, it will likely be rejected by the future as humanity moves towards a more elastic, freer payment model.

The problem with Bitcoin, for power, is that it is a private solution to public transactions – generally, two parties, not kin, enter into an arrangement. Always, unless you use BTC or cash, there is a third party watching over you.  Even if its cash, that cash theoretically has a trail. The current dominant financial system is a public solution to public transactions, and everything is out in the open. States since the turn of the nineteenth century have been doing what they can to break down the barrier between public and private society, to make them one. That is what the credit and debit cards have done. No matter how small or personal your transaction, its noted. Bitcoin is such a strong solution because of its personal nature.

So, it is a threat. And legitimizing this threat would be the emergence of a mechanism to control the price. If the price begins to appear to be managed, like silver, Bitcoiners can take this as a backhanded compliment.