Thursday, 21 November 2013

Bitcoin's imminent collapse - conspiracy?

Conspiracy economics likes nothing better than a good cryptocurrency like Bitcoin but now of course now it has gone mainstream and exponential one has to look for how the collapse will happen.

To believe the US government or any government of world order cannot manipulate the currency is to be naive.  

The "buggish on bitcoin" is a good start to the beginning of the end.  Of course, the conspiracy here is that Moneyweek are "goldbugs" who have every incentive to get rich people in risky countries to buy gold to hide in a toilet rather than a cryptocurrency like bitcoin.

The point about the FED putting their vast resources into "mining" means they could mine the hell out of bitcoins to destabilise the market.  Or could they?

An amusing description of Bitcoin.  What is money after all - simply trust (backed up at times with big guns).

Why I’m ‘buggish’ on bitcoin [Moneyweek]

“What is bitcoin?” she asked.

“It’s a new virtual currency. You know, it was created by someone on the internet. You can use it to buy things.”

“Who created it?”

“Nobody knows. He is said to have been a Japanese programmer.”

“Do you have a bitcoin? Could I see it?”

“No, it only exists in cyberspace.”

“Where does it come from?”

“You have to find it in cyberspace, using a computer program, which limits the supply.”

“Oh. Well, I guess everyone with a computer is looking for them. How much is the new money worth?”

“It depends. It trades freely in cyberspace.”

“But what makes it valuable?”

“Nothing, except that people are using it. We’re going to begin using it in our business.”

“But why would a merchant trade his valuable merchandise for something that has no value?”

“Well, that’s what we do with the dollar.”

“But the government guarantees the value of the dollar. They may not always do a good job of it. But at least they stand behind it. Who’s guaranteeing the value of the bitcoin?”

“Nobody.”
“You mean, nobody knows where it came from. Nobody has ever seen it. Nobody knows what it is worth. Nobody knows where to find it. And nobody stands behind it. Seems crazy to me.”

 

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