What Will Collapse First, Bitcoin or the Dollar?

I have been inundated with all of this talk about Bitcoin. I first stumbled upon it a few months ago and made a snap judgement that is smells like BS and looked no further into it. Now that I have been asked by multiple sources to either endorse it or ask my opinion on it, I looked into it further. What I found makes me believe this is another Elite concoction designed to fool people .

When Wikileaks first came on the scene, I immediately fell for it hook, line and sinker. In theory it sounded awesome. Secretive hackers created a site that allow secrets to be revealed while keeping the whistle blower’s identity safe. It had a multilayer protection that would prevent it from being shut down. It even had a cool James Bond character in Julian Assange, that made the story so intriguing. The longer the story played out, the more I became concerned that this was an elaborate scam. (Read: Beware of Patriot Pied Pipers) After a while, my suspicions we confirmed. (Read: Wikileaks: CoIntelPro PsyOp) Now that I look into Bitcoin, the same suspicions arise again. It has all of the elements of a great freedom idea. It has  decentralization, open source, peer to peer, privacy, and debt free money. The more I look into it, the more it reeks like a high level scam.  In this hour long YouTube video there is an interview with two leaders of Bitcoin, Gavin Andresen and Amir Taaki.

The idea of Bitcoin is it that is a currency that can be traded peer to peer without any outside (government) interference. These digital coins are traded and stored on your computer. Bticoins started in 2009 when people “mined” these Bitcoins on their computer by downloading this software and allowing your computer to run for days on an algorithm to “create” these Bitcoins. This program is designed to make the coins rare and therefore have some value. There will only be 21 million Bitcoins in existence ever, right now there are 6 million coins mined. The more coins that are in existence the harder it will be to “mine” these coins.

The only thing that gives these Bitcoins value is perception. If people are willing to work for Bitcoins and they think that they are rare, they will have some value. The more that it is accepted and the more that people are aware of it, the more they will be worth. Gavin Andersen makes the case that Bitcoins are sort of like gold because they rare and therefore has some value. Bitcoin serves the three main functions of money, a medium of exchange; a unit of account; a store of value. To be honest, anything can serve as money, so this is not that big of a deal. The real factor is if this money has any intrinsic value. I constantly rail against the dollar as becoming worthless, but the dollar is worth much more than Bitcoin will ever be. The dollar has the power of the government behind it and is accepted worldwide. The problem for the dollar is that it is reaching its climax and there are way too many excesses that will collapse the system.

In order for you to “mine” these Bitcoins you need to download this software that has to run the computer full blast for 5 to 10 years to generate any Bitcoins. It will actually use more electricity than the actual coins are worth, besides slowing down your computer. The added joy of this program, is that the more people that are trying to “mine” Bitcoins, the harder it is to “mine” them. Right off the bat, the average owner of a laptop or home PC will NEVER “mine” any Bitcoins. I believe that this was done more as a psych experiment. The average person thinks that these coins have value because they cannot make them easily or fooling them into thinking that the playing field is level.

If it is sooooo difficult for these coins to be mined, then how is there already 6 million in existence in less than a few months? I am assuming that those that started this scheme generated coins relatively easily at the beginning or had these incredibly powerful computers working non stop to generate these coins that were essentially worthless at the beginning. Which makes you wonder why someone would be doing this? The ONLY people making money actually doing this are people with highly specialized computers that can run these crazy algorithms and generate them faster than the average Joe. This already stinks of Elitism. My bet is that the reality is that there are NO computers REALLY generating Bitcoins this way. I am sure that they are created out of thin air and only have value because of this perceived difficulty. Even if they are what they say they are who is going to spend years crunching an algorithm?

The first thing I thought of when I heard of this Bitcoin scheme was the Carbon Credit scheme the Elite were trying to push. Through government regulation they would force companies to buy carbon credits to offset the pollution they were doing. The scam was that there was only a limited number of credits and a forced rising regulated demand. These companies could become carbon neutral by investing in “green” technologies. Of course all of these credits and technologies were owned by a group of insiders who thought of the scheme and then set about to create the demand through a huge propaganda campaign. When the lie was exposed, the Carbon Credit market collapsed to its intrinsic value, 0.

The first Bitcoin was worthless, because no one knew what they were or accepted them as payment. Now that people are hearing about this and are sold on this dream, they are now being bought and sold for dollars. Given that it is soooo difficult to create Bitcoins and there is presumably a limited number of them, this would naturally lead to speculation. I believe Bitcoins could end up being the biggest percentage bubble of all time, simply because this is the first thing that I know that has absolutely no value behind it and was literally worthless or a fraction of a penny and now it is $19 in a few months!? What does that work out to as a annualized percentage gain? And this has not even got into the general public. The guys that started this and have the 6 million Bitcoins created from air, now have close to $120 million in Bitcoins. That is worth like 100 tons of silver created from hash tag algorithm scheme. Speaking of silver… Bernard von NotHaus is a “domestic terrorist” for producing real money with his liberty coins, but this is OK?!

So who created this Bitcoin? Well that is a mystery to a certain extent. It is said that this programmer, Satoshi Nakamoto, released the source code but no one knows who he is or even if he exists. He might be like Keyser Soze from the Usual Suspects and not exist at all. He has a Japanese name, but all of his writing is in English. Even the lead in the Bitcoin project has only communicated with him by email. He got it started and right when it caught on, he disappears. Who knows, Satoshi might be Gavin Andresen or Amir Taaki. It does strike me as very curious that these two seem awfully relaxed heading up a project that the creator is hiding in the shadows and they know that governments are going to want to rule on them for potential “financial terrorism”.

I wonder how many Bitcoins Satoshi has? He must know that this would greatly increase the value the more this caught on, given the limited supply of the Bitcoins. It would think that by disappearing and owning a currency that cannot be traced, it would seen like the perfect scheme. Build an idea that gets around all of those pesky securities laws, sell something that is intrinsically worthless, and exchange your millions of Bitcoins for real money on these exchanges in complete privacy. The first Bitcoin guys must have a monopoly on these coins and therefore regulate the price of them by the amount they sell relative to the amount of interest.

They go on to talk about how Bitcoin is great thing, because of inflation. Since there is only a limited amount of Bitcoins, their value will never be inflated away. Well that is not necessarily true since the Bitcoin money supply is going to double in two years. This should growing much slower than the interest or demand these coins could bring. All that aside, having a rigid currency is no party either. In the late 1800’s, when the Banksters demonetized silver in the Crime of 1873, we were on the gold standard. Gold is very stable in supply and cannot be inflated very easily. As a result of this immovable currency, a depression like no other occurred. Debts became harder and harder to pay back as money became hoarded by the Elite. Soon the money was so rare that starvation was rampant in America. This limited supply with growing interest will encourage less and less transactions. You would be a fool to spend the Bitcoins as money, because it is going up as an asset. 2 months ago you might have bought a $20 t shirt for 2o Bitcoins. Now those 20 Bitcoins are worth $400 dollars! That is an expensive t-shirt.

“If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe!”-Times of New London 1862

I think debt free, fiat currencies that can grow and contract with the economy are a good solution. That should be coupled with other legal competing debt free money like gold, silver, platinum, copper and nickel. Having a floating value between all of these currencies would be a blessing to any society. We had monetary system like this in the United States both with Colonial Scrip and Greenbacks. Both times we had awesome growth and both times the Elite put a stop to it. I would also like to see usury and fractional reserve banking outlawed too while we are at it. Maybe even confiscate all of the wealth accumulated by the criminal Elite… Dare to dream.

Finally, they ask the all important question, Qui bono? Why promote this? Gavin answers by saying, “The incentives built into Bitcoin are really quite brilliant. Obviously if you were one of the people that were creating Bitcoins when they were worthless, well now you have some Bitcoins and you would like them to be worth something. You might work hard to try to find someone to trade with and try to find areas in which case they really make sense.” You can throw out all of the cover stories of underground currency, privacy, open source, peer-to-peer, and inflation proof stuff. This Bitcoin thing, when all is said and done, is a Ponzi scheme. The early adopters promote a scheme only to dump their worthless coins on the greater fool. He admits it right in the video!

This is not about they rest of the things that they are talking about. If it was, they could have just as easily created 100 billion Bitcoins and make it a fixed amount or even a flexible amount. They then could have given a couple Bitcoins to every IP address in the world and had an equal distribution of Bitcoin wealth. No, this is a scheme where the early adopters create Bitcoins with relative ease and THEN create the demand by selling the snake oil to unsuspecting people who will see no harm in spending a few bucks to try it out. As more people try it out and the supply remains steady it will naturally bid up the price. Fortunately, only the greedy, the gamblers and the fools will be caught holding this when it all blows up. The schemers that get out ahead of the collapse, are only encouraged to come up with another scheme as they walk away laughing.

Amir Taaki said that he got into Bitcoin through all of these online Poker Sites. These Poker sites have been driven off shore and in some cases out of business. One reason is that there is so much money going into these sites and who is to say that these on line poker chip currencies have any value. So Amir decided to write his own open source Poker game. The only payment system that he could use was Bitcoin, because of this privacy aspect of it. He goes on to say, “As I started to look at Bitcoin, I realized that wow, this is something that is amazing.” Yeah, it is amazing. Here is a scheme that gets around the online poker chip problem and the securities issues. These virtual currencies like World of Warcraft gold are a growing world of virtual and real money. Chinese prison slaves are now being forced to mine electronic gold instead of breaking rocks.

Towards the end of the interview Gavin openly discusses that he will be giving a presentation at the CIA about Bitcoin next week. The fact that it is not the FBI, DOJ, or SEC which would handle criminal or securities issues makes me wonder if something even more nefarious is at play here. He is going to speak in front of a venture capital firm that the CIA has called In-Q-Tel. In-Q-Tel is a private non-profit that specializes in high tech companies. I believe that In-Q-Tel is the real power behind such power houses as Google and Facebook.  I have always doubted that guys like the Google boys and Zuckerberg could pull off such tremendous feats without a huge teams working hidden behind the scenes. What if the government/Elite wanted as much information on its slaves as possible to control them. They could assign a team of agents to work many hours interviewing and digging through files or they could set up systems to allow instant access across platforms like PROMIS or Carnivore . (Watch the Onion have fun with this.)

The real trick is how do you get really personal information like who their friends are, were they are going, what they are interested in? We see from the census that many people are very uncomfortable about giving the government their personal information. On Facebook or Google people willingly give away the farm because they feel safe. Now we live in a world where your phone tracks you in real time. You can be eavesdropped on even if the phone is turned off. The only way to prevent this, is to pull the battery out, which is why most new phones you cannot do that. Your laptop camera and microphone can record you in your home, like the Pennsylvania School case. What about the possibility of creating a whistle blowing site like WikiLeaks to control whistle blowing? How about every single picture you take on a digital camera has a time stamp and GPS coordinates on it. This is a great way for weirdos to stalk you and your family, especially if the weirdos are from the government.

So what could be the interest of the CIA in Bitcoin? Gavin says that there is a intelligence technology conference this year and the main issue is money. He says that they are, “very interested in money.” That is probably because that they know the dollar is going to die and their power is derived off of that dollar. They are looking for alternatives to keep their power going.  I am of the opinion that there is a huge black ops part of the government that has huge interest in illegal activities like drug importation from Afghanistan. Could Bitcoin be used as an alternative currency outside the banking system? After all, our banking system is going to collapse and when it all goes down there are going to be a lot of bankers squealing about illegal activities to cover their ass. Here is a Swiss Banker blowing the whistle on how an assassination of a President of a third world country was paid through his bank.

These highly intelligent, forward thinking guys are trying to find a way to deal with a new paradigm. Collapsing dollar, freedom movement, hacktivism, and blow back from decades of illegal and immoral activities. It is too bad these guys don’t listen to the Oath they took to preserve and protect the Constitution. Maybe they think technologies like Bitcoin can serve as model for a new Dollar? Maybe they can set up other schemes that the fascist corporate power can use as currency when the dollar collapses?  Maybe they will simply use the unlimited power of the government to generate more Bitcoins? Who knows? All I know that is all of this will end, and not well for those that are most dependent on the dollar paradigm.

Let’s bring this full circle. We can see that there are all of the classic elements of a Ponzi scheme in Bitcoin, but the majority cannot see the trillions of times larger Ponzi scheme of the dollar. Those that buy into Bitcoin are not really buying Bitcoins, they are buying into a paradigm that benefits them. As soon as it becomes apparent that it no longer benefits them, they will dump it  never to be touched again. The same will go with the dollar. There will come a time that the dollar will no longer benefit the producers of oil or labor and it will no longer be accepted. They will sell their dollars for anything that has REAL tangible value. So the race is on what will collapse first Bitcoin or the Dollar? What will be worth more in the end, digital Ponzi scam currencies or silver?

64 comments to What Will Collapse First, Bitcoin or the Dollar?

  • Megan

    Your English is just good enough to be confusing, because it’s not good enough.

    In other words, you need a native speaker of English to proofread for you…otherwise you are actually saying different things than you think you are.

  • Zoran

    Thank you for this great article. You have raised some great questions.
    Yes, the whole thing is too strange and stinks of a big Ponzi scheme. Or, maybe it is even worse than that. Maybe the whole thing is a social experiment to see how would people accept the digital money and based on the results the establishment is then going to implement a “more secure digital currency ” that would be government-secured and that would have built-in mechanism for traceable transactions, for “our protection”, of course. Kind of like the backdoor inside NSA.DLL that is in all Microsoft Windows since year 2000, that was placed there for “our protection” right about the time when Bill Gates and DOJ have “reached a deal”.
    From the mysterious bitcoin programmer (some NSA/CIA hack?) to the way the coins are created and to the way how the bitcoin “value” can be overinflated to how easy is to manipulate this system and crash the currency (like happened today) – the whole thing is full of strangeness.
    Many of the things simply do not make sense and even bitcoin logo resemble dollar sign with those 2 bars. To me this suggests to subconscious mind that bitcoin is just a digital version of dollar and I am convinced that this is intentional.
    Security was not addressed as well, and this omission is so strange. Anyone who can setup a fake bitcoin trading site can still millions of bitcoins at a given time, especially if the coins are stored in online valet and all transactions are placed in an escrow for a day or two. Implications are mind boggling.
    I can only imagine how clever “software updates” will actually install Trojans on computers that can steal the bitcoins without an effort. The whole thing is simply too strange, mechanisms of operation are too ambiguous and there are loads vulnerabilities, and those 2 bitcoin “developers” are too naïve. Maybe that is intentional.
    And, CIA presentation is probably debriefing. BTW, that South African guy is an idiot.

    Bitcoin sure stinks big time

  • […] June 7th What Will Collapse First The Dollar or Bitcoin is released. http://dont-tread-on.me/?p=2784 […]

Support our fight with a one time donation.

colloidal-silver-hydrosol-banner-175x263

Over 300+ Videos