Does anyone here speak bitcoin? I have followed the postings here for several years and know that many of you are quite knowledgeable about currency systems, fiat money, etc. I have read a few articles, one compares it to gold mining, in that when the gold comes out of the ground it of course has no value until we assign it one. Same thing with the "bits". Apparently one can "mine" bits and receive bitcoin in payment, you have an account that is credited with this virtual money, then if a transaction is between one user to another, there is no bank, no middleman...The bitcoin has a value around $60-65 dollars..Happi, or anyone care to comment?
Until enough people are using bitcoins, stay away. Among the characteristics of any monetary system are that it is simply defined, widely recognized and accepted. Going back to Colonial days Spanish coinage was used because its intrinsic value was well recognized and people had faith in it. Alexander Hamilton based the ratio of gold to silver in US coinage on the same ratio as the circulating Spanish coinage of the era. Whatever else Hamilton was about he got that right.
We can go back in history many centuries before to the Byzantine Empire where the Bezant was trusted in exchange for 800 years because its intrinsic value remained dependable, unlike the croouks who currently issue the American “Dollar”. It’s amazing people are willing to continue to accept it.
There’s an old principle called the K. I. S. S. principle. (Keep It Simple Stupid) Bitcoins don’t qualify. The Bezant passed the test since it first went into circulation over 1300 years ago in an era preceding bits representing “value” on a computer screen.
Viewing the political budget discussions in Washington it is obvious that the first order of business should be to run them out of town. What makes economics difficult for most is the dissembling nature of the accepted authorities who assiduously and tirelessly work to replace the KISS principle with nomenclature they know no one will understand (Quantitative Easing, etc.) so they can continue to operate as croouks. It is amazing that no one has the cajones to stop them in ways that reach most of the public so they will understand what robbing SOBs these banksters and their political puppets are. Is some reporter going to photograph Jamie Dimon or Jon Corzine peering through penitentiary bars and sharing the prison exercise yard with Bernard Madoff? What a hoot that would be to hear them talk of the “good old day” and the heist that brought them fortunes from millions through their manipulative tactics that gained control over markets and politicians.