Bitcoin: Miracle currency or mirage?


A brawl over Bitcoin. (Cartoon by Jake Huffcutt, concept by Michael Caliri)

By Mike Caliri

I delight in the idea of a new currency to topple the despicable worthless fiat dollar that currently suppresses the consuming public, but that is not a reality nor will it be anytime soon.  While we are hypnotized and lulled to sleep by intentionally boring familial heirs i.e. George W. Bush as such, we many times overlook it as if it never mattered.

Bitcoin is the first crypto currency. This means that it uses a cryptography to control its management for the purpose of not having to rely on central banking authorities. Using many ideas from cypher-punkers, Satoshi Nakamoto which is a pseudonym, may be one of three potential creators that have been working to make bit currency a reality since November of 2008.

Essentially, the internet posted article detailed the methodology for a peer-to-peer electronic cash system that doesn’t rely on a trust. The suspected bit founder could potentially be one of several cryptographers known to have worked on protocols of their own such as Adam Back with Hashcash, Wei Dai with B-money, Nick Szabo with Bit-gold, and Hal Finney with RPOW. Whoever is the man behind the curtain we don’t know yet, but perhaps whoever it is can figure out a way to fix the bad press and regulation issues that is now strangling Bitcoin investors. We shall see.

Look who is at it again. Yes, the global banking cartels are not looking to let loose their strangle hold on the consuming public quite yet. As Bitcoin stepped up into the global currency big boy party, the super elite banking powers have made their point clear. The banks will go to war with any virtual currency and take them down.

Especially any attempting to sidestep the main vein and seek to challenge the global banking authorities. Even if banks have to create a witch hunt to highlight publicity scandals, illegal money laundering schemes, market volatility, and avoiding taxes such as Bitcoin investors have done, they will quietly hide out of the public eye while secretly attacking the entities brave enough to join the fray so to speak.

The multinational Banks will not tolerate losses of any kind financially and right now Bitcoin has succeeded in drawing people to itself as a money making machine, but its highly volatile too. So don’t just jump in the deep end if you are looking to invest in my opinion.

Do you remember the movie Social Network? Yes, well the Winklevoss family is deeply drilled into the Bitcoin well and aiming to cash out big time. The arrogant and super wealthy brothers have invested millions into the development of their own site and the exchange; however, they are amidst the horrors of indictments of money laundering by Charlie Shrem and no one knows right now how that will play out.

Shrem is the 24 year old big pitchman for Bitcoin as it attempts to move into the center stage as a virtual currency, but failing to do so legally.  For doing business with the nefarious Silk Road site notorious for moving drugs and such, the whole currency is taking a hit, but it doesn’t seem to be slowing Bitcoin too much. It has taken a hit and is less than half of its highest value currently at $522.45 per coin.

As an experienced collector and salesman of precious metals, I have direct experience with the fringe of the financial world. Investors in precious metals equal only one percent of all monies invested on the stock exchange and invest based on executive orders created in 1933 by President Roosevelt. These investors trade metals to avoid taxes and hide their investments as much as possible from government. I imagine chaos taking place if the fiat tender fails and gold is used in its stead.

Clearly, anyone who intends to shake up the currency system will surely pay in one shape or form. I am not eluding to shadowy figures unknown to the World that appear like ninja and disappear like the profit in your 401k. No, I am cracking the case on the biggest bankers like Montagu Norman who founded Bank of International Settlements.

This is the controller of all the insider establishment central banks like International Monetary Fund and seeks to function separate from politics so it can do what it pleases. Ultimately, Norman would like to run the world as a dictator, but won’t get his chance.

Then, if that’s not enough for your tired mushy brain, the World’s super powers like USA love to play cops and step in to help the big bankers fight their battles for them. How? Well, our government gets involved with agencies like the IRS and creates regulations and restrictions on it. Right now for example, the IRS has declared Bitcoin a property that can be taxed. That means it’s now regulated and that is just the beginning of the pitfalls of Bitcoin.

This is just beginning what will come of virtual currencies and my opinion is that the Establishment will either make it go away or find a way to profit handsomely from it. Warren Buffet calls the Bitcoin a mirage and it will disappear very soon. When Buffet appears on Television and makes ominous declarations, people listen and listen well.

Think about it, research it in depth, and then make an intelligent decision regarding Bitcoin if you intend to jump into the shark infested waters of virtual currency in its infancy. Try not to lose your head.