Alternative monetary system:
The previous essay explained the unreliability of unbacked currency; the question arises whether Bitcoin is a more reliable alternative?
Bitcoin has the same thing central bankers don’t like about it. They can’t control it. So, they can’t use it to steal from people. And they can’t use it to bail out their friends – to support zombies – or finance meaningless wars. Nor can they use bitcoin to cover their deficits or to manipulate the economy. Why can’t the feds put their enormous computing power to work to mining bitcoin? That way, if bitcoin becomes the coin of the world, they could still control it – with a huge pile of reserve coins of their own.
Bitcoin has a double protection; twice chopped and twisted algorithm encryption, a mix up of bits and bites. Fiat money is protected by just one single algorithm mix-up of bits and bites. When hackers break in, the global banking system will collapse, before a dual algorithm protection comes into trouble. That is not to say that bitcoin will survive as the Internet goes down, but the rest of the world does have a bigger problem when the single encryption is cracked. Then authorities are simply played out. Bitcoin is still one magnitude more secure because of its double security. Another plus of Bitcoin is its own independent transfer infrastructure. It also is an anonymous alternative currency, and the best way to collect money. Payment remains anonymous and doesn’t have a clearinghouse that would create a digital paper trail.
It is supposed to be a great triumph of technology, which protects the rights of individuals to their property and privacy. But, does this make the Bitcoin a new reliable type of money? The straight answer is “No”. – Bitcoin too is just a currency, and is not money like gold or silver.
When, more than a century ago, a house was sold for gold coins, all that the seller had to regard was the quantity of gold in the coins offered and whether that quantity was satisfactory or not. Gold was recognized as money without any kind of counter risk!
If today a buyer for your house offers to pay in Bitcoins. The quantity of Bitcoins – unlike a quantity of gold in the early days – would mean absolutely nothing to you. You would have to relate the quantity of Bitcoins to something else, namely your familiar fiat currency. As, it still is important to know how many euros; dollars or pounds are in exchange for these Bitcoins, because that number would determine whether or not to sell the house.
It is quite clear that the Bitcoin can only aim to be a derivative of the euro or any other fiat currency, in other words it is allied with the existing monetary currencies. It doesn’t have a feature anything greater than that: it doesn’t have an independent, sovereign value of it self, like gold. Bitcoin unlike gold is not physical – something of substantial existence with value.
For example today the dollar is rising in its exchange value against all other currencies. But no one can deny that the dollar itself is a fiat currency, and that in all of history, absolutely all fiat currencies have ended in total collapse regarding exchange value.
So, what is the future of Bitcoin when the fiat dollar and all other paper currencies finally crash? Without a testimonial value, what will be then the value of a Bitcoin?
Bitcoin is a non-thing. It will never be able to have an independent, sovereign value on its own, because it is not backed by anything, it is equally unbacked like all today’s currencies in the world.
Characteristics of money:
The creators and promoters of the Bitcoin are probably acting in good faith, but they are freaks fascinated with technology. Bitcoin indeed is a technological marvel, but its creators and promoters apparently do not understand the characteristics of money with which Bitcoin has to comply, and likely they do not understand that the creation of money cannot be accomplished by plain technology, no matter how sophisticated it may be.
Today’s ignorant public is also bewitched by the marvels of technology and thoroughly be deceived by dishonest economists about what money is and must be, and this opens the way for such imaginations as Bitcoin.
Probably not by intention, but actually Bitcoin is fraud, at least when managed by the wrong hands; it is an attempt to replace the enormous scam of fiat money, which is a curse on mankind, but in fact it is similar. Very likely Bitcoin will end up in the same dustbin of history along with all other fiat currencies that certainly is going to happen.
The reason why Bitcoin has obtained a measure of success: is that all Bitcoins are molecular magnetic fields on computers, just as all “moneys” today, in banks and in circulation around the world, all these too are only molecular magnetic fields on computers. So technically Bitcoin is simply another scam offering a new, self-proclaimed imaginary digital “money”, in competition with the established scam of only imaginary digital “fiat money”.
For the time being, the established scam of fiat currency has the upper hand, because it is already over one hundred years available in about 174 varieties around the world, since in 1913 the real money perished. So people are accustomed to fiat by using it for over a century. Likewise with fiat money, owners of Bitcoin may end up down the road discovering that owning it is similarly a scam when they realise that their accumulated wealth is to be an equal dream.
Gold has been a reliable store of value throughout its 5000 years of history, because you can’t simply “print” more of it, while digital files usually don’t have this limitation. An infinite amount of copies of digital files can be created when desired, like in all fiat currencies. However, the bitcoin creators took this “limitation” into account. Their philosophy is to make this virtual currency deflationary. New bitcoin creation is programmed to slow down over time – slowly but surely – until it basically stops. Which should make each remaining bitcoin more valuable – as they chase an increasing amount of goods, that’s why the virtual currency gains wider acceptance. If this is true that a computer program limits the supply of bitcoin, it also is true that the arrival of bitcoin-like successors is as expandable as the universe itself, which is an additional negative aspect for the viability of un-backed digital currencies.
What is money?
Most people think currency is money. If someone gives you cash, presumably it is thought of as money. It is not. Cash is simply a currency, a medium of exchange that is used to purchase something that has value, called an asset. The word currency is derived from the word current –electricity– a current must move or else it will die. A currency does not store value in itself. Rather, it is a medium to transfer value from one asset to another.
Money has unlike currency value within itself. Money is always a currency in that it can be used to purchase other items that have value, however currency is not always money as explained above; it doesn’t hold value in itself. Money is a medium of exchange and a store of value; its main value is to represent other goods.
As illustration, the paper of a one hundred euro bill is not worth one hundred euro! The paper represents the value of one hundred euro that is stored somewhere else; that was true only in the past, when the world still was on a genuine gold standard. Today every bill is backed by nothing other than air or what commonly is called ‘good faith’ and the credit worthiness of the Central Banks. In other words authorities have the ability to create money at will without anything to back it up, in plain language counterfeiting, but governments call it fiscal policy, and this together is called ‘fiat currency’, which is not money.
Gold is real money; in 1913, $1,000 bought nearly 50 oz. of gold and today only 0.75 oz. Thus against real money – GOLD – the dollar has declined 98% since the creation of the Federal Reserve Bank of New York in the USA in 1913. But it is not only the dollar that has declined in value; all major currencies have lost 97-99% against gold since 1913. Until 1971 the US dollar was more of less backed by gold, when Nixon abolished the flimsy gold backing, and money printing started in earnest.
WAKEUP RKM PROGRESS UPDATE:
Khazarian financial system under attack:
The markets are completely rigged; it’s difficult to know just how bad the economy really is. On top of that, there is still a massive real estate bubble in China that has yet to fully pop. During the first week of 2016, worldwide about $2.5 Trillion in wealth has vanished. – Bankrupting the large Khazarian mafia banks in the process that were behind so many of the world’s financial troubles. The Khazarian Central Banksters now are running out of options as oil prices collapse, drug money is cut off and stock market manipulation is being stopped. – Richard Fisher, former head of the Dallas branch of the Federal Reserve Board crime syndicate, admitted that “What The Fed did, and I was part of it, was front-load an enormous rally market rally in order to create a wealth effect…” and added “The Fed is a giant weapon that has no ammunition left.”
The Fed that is at fault: “Simply put he concludes, there can’t be much more accommodation.” In other words the Khazarian Mafia artificially have been raising the value of the stock market. This now is being brought to an end, which is why markets are collapsing.
The RKM and the large Western Bank shareholder families know their system is doomed. They want to capture as much wealth as they can when the new World Financial System is rolled out whatever it will be, electronic, a new basket of SDR world currencies, or gold backed.
Another interesting note: The capture of Mexican drug lord Joaquín “El Chapo” Guzmán means that he will be extradited to the United States ‘to tell his side of the drugs trade and destroy the Bush and Clinton drug lords’ the TBTF banks, ISIS and the Obama administration, according Intelligence sources.
A few bad days for stocks do not tell anything significant or gives a trend, be cautious about what is ahead. And if there is a significant downturn in the economy, people don’t have to look at China for answers.
Polny says: The manipulator’s clock is out of time, as the December 2015 cycle low forecast for gold held, which was the case. What is going to follow should be explosive. Watch his account below.
World peace is possible this year! But we cannot sit on our hands and wait for what is going to happen. The geopolitical situation is ripe for a regime change, especially in the Middle East, Europe, Japan and the USA. The fall of the RK Mafia could be this year’s biggest event, hopefully in time before the Khazarians are able to pull the plug and throw the world into chaos. The removal of the RKM will open the road to world peace. This cannot be done passively; everybody must contribute to his/her utmost ability to ensure total success.
Millions more of people must WAKEUP and understand that our governments, politicians and the mainstream media are not telling them the truth. With our effort and initiative, they all must be arrested and brought to justice the moment the Jesuit Khazarian Mafia is defeated. The time is arriving for those that have prepared in advance to liberate the world, to love others, help others and show everyone the TRUTH.
It now becomes urgent and important to organize us to have arrested and bring to justice all officials within our own government that have collaborated with this Mafia. To mobilise support for this ACTION; forward this article to anyone who is concerned about freedom and their future, with the request to join our mutual fight to defeat the Jesuit Khazarian Mafia, for once and forever.
The 2015 Shemitah Crash That Wasn’t Will Happen SOON! – Says Bo Polny.
We Are Very Close To The End says Rob Kirby
“At some point, the available precious metal stocks in the West will disappear, and when they start to disappear, it will seem like a bolt of lightning coming out of the clear blue sky because they will be gone in no time.”
Rob Kirby’s prediction for the price of gold and silver by the end of 2016 is that it could be many multiples of the prices right now. Kirby reports, “They say they think we are very close to the end. I don’t want to see the end because it’s not going to be a happy day, not for me, not for you—not for anyone. It’s going to change dramatically the way we live.