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Bitcoin – Crypto Currency that Competes with The Federal Reserve

April 20, 2013

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All of us have the need to feel like we are getting somewhere with our pursuits.  For all of you non-competitive types out there the shocking fact is that money and measure thereof is a very important part of this feeling.  No matter what your profession, getting paid more is a good thing.  You can buy more “stuff,” make things easier for yourself, and take the stress out of your life by knowing you have everything paid for.  This is a perfectly healthy point of view for some, the antithesis of life for others.  While most of us have been caught up in this quest for more currency, The Federal Reserve, an organization that rules our fiscal policies has been throwing a monkey wrench into our plans.

If you don’t know what The Federal Reserve does, how it was conceived, and who it really benefits than I encourage you to pick up a copy of “The Creature from Jekyll Island,” by G. Edward Griffin.  The system’s faults will be plain as day after this read, and if you’re feeling lazy simply do a youtube or google search and numerous “conspiracy theories” about The Federal Reserve will show up.  Assuming you know a little bit about this I’d like to move on.

This monkey wrench I was referring to is called inflation.  There is no cure, in fact it has been the death of every fiat paper currency that has ever circulated the earth.  Quantitative Easing as Ben Bernanke, Chairman of The Federal Reserve likes to call it, has come about as a solution twice in the last six years.  Since our near collapse of the banking institutions in 2007, this non-governmental body has been printing money at rates that have devalued, and undermined the dollar.  There are now plans for an unavoidable QE 3 as you’ll hear it called in the news; fancy lingo for growing the money supply.  The same thing has been done in Europe by The European Central Bank with their sadly failed Euro note that is showing the first signs of collapse.  Why is this so dangerous?

Well imagine for a minute that you go to the store to buy some eggs.  They seem expensive now at $4.00 a dozen for the niche organic free range kind I buy.  A month later, those same eggs might cost you $6.00.  These are the same eggs from the same farm brought by the same truck, it’s just that the money you are paying is worth less.  The food the chickens were fed went up in price, so did the gas to get it to your supermarket, and that price was passed on to them, so now it’s passed on to you, the end consumer.

This is just a rudimentary example meant to be easily understood.  Ups and down in currency valuation are unavoidable, but The Fed isn’t helping the situation.  The more money they print, the less buying power we all have.  Now what if there were only so many dollars or Euros in the world?  Sure, fluctuations would still come about, maybe even deflation.  The later is a phenomenon a lot of economists associate with bad times and economic recessions.  The truth is, they all say something different; here is my take.

The knowing that there is only so much of something like gold, silver, and now crypto currencies like Bitcoin, gives these materials or currencies a sort of intrinsic value.  They cannot experience hyperinflation, and their inflation is controlled or buffered (gold and silver are influenced by speculation, but only because they are traded on paper.)  If you’ve followed the rise and abrupt crash of the Bitcoin over the past two months you would know that this currency was, and still is inflating at this very moment.  I’m not speaking of the bubble created by speculators ($40 to $266 in a mere four weeks,) I’m referring to the supply of Bitcoins that exist.  Currently, there are only 11 million in “circulation” and the supply will grow, but stopped being “mined” when the number reaches 21 million.  As the supply grows, it gets harder and harder to create new coins, that is how the inflation is controlled.  Read about this currency, and how it works at: http://www.economist.com/blogs/economist-explains/2013/04/economist-explains-how-does-bitcoin-work

I have invested a small amount of money in the Bitcoin, and I had never really planned on having it be a speculative short sighted investment.  I don’t think the inventors wanted to create another Wall Street.  Instead I chose to be a participant in changing the way money works.  “Until we change the way money works we have changed nothing!”  Michael C. Ruppert.  There are plans to create Bitcoin ATM’s.  You can put cash into them, and take cash out, just like you’re used to.  Only it’s decentralized, and not controlled by a bank or private company acting like they are your government.  The fall of the banks in Cypress has seemed to fast track this idea, a great development that will further legitimize and add steam to this movement!

Four years ago this idea was thought of as too radical, and somewhat of a joke.  Who would take these as payment?  How would they be regulated?  Who do I go to when someone scams me or rips me off?  Well I guess the old saying “buyer beware” needs to be expressed when using any currency still in its infintile stages.  The point is, you regulate how you use them.  It puts the power in your hands, not a private company that prints faces of dead guys on paper and tells you that each one is worth so much.  The more vendors and businesses that accept the new currency, the more powerful it becomes.  I’d like to note that I paid for my word press blog with Bitcoins!

Below is a list of companies that accept Bitcoins as payment, there are more and more every day.  I’ve also listed a link to Max Keiser talking about Bitcoins, he’s a proponent who has speculated that each one could be worth $100,000 USD if they become a mere ten percent of the global money supply.  This video presents some criticisms of the current platforms for getting involved with the currency and the fixes that are in store to finalize it’s place as an accepted way of doing business.

https://www.spendbitcoins.com/places/

 

From → Currency, Technology

One Comment
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    subject and didn’t know who to ask.

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