Posted by NoMoreMrNiceGuy on Dec 5, 2013 in Economics | 1 comment
I’m very intrigued by Bitcoin but also worried that govt will clamp down on it. What’s your take?
Views so far:
On the one hand – could this be the first REAL currency since gold? Anonymous, largely inflation-proof, impossible to counterfeit or manipulate by unscrupulous governments?
On the other hand – could this be the foreshadowing of the dreaded single global currency, which the governments can manipulate and subvert to suit their needs? And if they can’t, won’t they legislate it away, outlaw it, leaving everyone who’s invested in it hanging?
If you had invested $1 in 2009 when Bitcoin was first introduced, today you’d have over $40 THOUSAND in your account! If you bought $200 worth of bitcoins at the beginning of 2013, today that would be worth about $1000. Increasingly excited analysts and forecasters predict Bitcoin to be heading towards $2000 within months, and SOME (respected) analysts don’t preclude such EVENTUAL dizzying heights as… $1 MILLION for one Bitcoin within just a few years…
But while this giddiness undescores the real possibility that all we’re looking at is a “bubble”, increasing numbers of people are considering jumping on the Bitcoin bandwagon – rapidly cashing in – and exiting equally hurriedly. Today, even if you’re the millionth person getting into Bitcoin, you’re still an EARLY adopter, and hence very likely to be able to PROFIT from it – especially if you only invest a small percentage of “what you can afford to lose”.
I’m FAR from being an expert on Bitcoin or any financial matters, but I’m researching this quite keenly now and I’m FOR SURE going to invest a little bit into it. The beauty of Bitcoin at this time is that you can “get in” for peanuts. $10, $50, $100 – that’s just fine. And that’s a risk I’m definitely prepared to take.
This said, I do want to understand everything that’s involved. Check out my footnotes for all the technical details; meanwhile in here, as usual, I’ll only put forward a SIMPLIFIED version of what you need to know.
This said, if you could guarantee the same tamper-proofing with gold or other commodities, the same would happen. Fiat currency becomes, after all, truly WORTHLESS the minute the government takes its force away from it. So, clearly, no such guarantees can be given. Additionally, due to Bitcoin’s built-in ability to be 100% anonymous, the government’s ability to collect TAXES can be eliminated – unless it can counteract this somehow. And you can be sure IT WILL.
Over the past 4-5 years to date, Bitcoin has reached less than 1% of the money supply. That’s significant, but not YET life-threatening to the oligarchy. But when you consider that the majority of its growth is RECENT (2013), then you can project that within 1-2 years, it can reach anything from 5% to 10% of the money supply, at which point it will be DEVASTATING to the FIAT economy. Not bad for the first truly libertarian currency!
My sense is that “NOW” is the time to get in and INVEST in it.
I imagine that we’ll have a relatively unimpeded ride with it for at least another year. After that, the governments WILL move in to control it – and then either there will be a GENUINE major financial revolution or… Bitcoin will be subverted and controlled just like gold is – i.e. it will be a pretty good investment, but its rises and falls will be brought to you courtesy of the fiat money system… which is about to bring us all ruin anyway! And keeping THAT in mind, it’s interesting to consider how Bitcoin might be used as a safety valve for the fiat economy and the implications of that to the society as a whole.
What Is Bitcoin? Tom Woods Talks to Erik Voorhees<
The Truth About Bitcoin
Bitcoin vs Gold: The Future of Money – Peter Schiff Debates Stefan Molyneux
Something BIG is Coming! – Alex Jones, Max Keiser & Gerald Celente (PREVIEW)
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