What Will Collapse First, Bitcoin or the Dollar?

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Don't Tread On Me

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.

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