Bitcoin Market Crash
Within my circle it seems everyone is trying to use BitCoin as much as possible. They love how it is decentralized and anonymous. They think this currency is the key to breaking free of the fiat dollar. These are the same people who purport to understand Austrian economics. Yet the people who truly understand economics, those who are authorities in the industry have explained over and over in the simplest of terms why BitCoin is not money, how they predicted the first bitcoin market crash and why its markets will never be stable or hold any true value. BitCoin in short, IS fiat.
The value of the currency depends entirely on faith; what people "think" their virtual numbers are really worth. This is the same thing as the american dollar. The U.S. dollar is not backed by anything, it is just paper, it's value is determined by faith, that dollar has no actual use. This is as opposed to things that have been used as money in the past such as gold and silver. These metals are highly valuable in their own respect, in the jewelry industry of course but especially in the technology industry. Gold and silver are highly conductive. The fact that metals also happen to be divisible, durable, relatively scarce and always in great demand is what makes them a common medium of exchange in the first place.
Gold can be held physically and never loses its tangible value (in comparison to other products). During one of the many bitcoin crashes the biggest exchange arbitrarily shut down and locked everyone out of selling off and getting out of the market before losing all of the money they had invested. The stock exchanges for this market are run by single individuals who may use it for their own profit. MTGox (the exchange in question) makes money off of every single transaction, they hold a very large amount of control over this currency, more so than the Federal Reserve holds over the fiat dollar.
And let us not forget that in true OWS fashion the top influences' of bitcoin talk a big game about decentralization but are actively seeking approval from the government and ways to centralize "their" currency. They want total control much like Ben Bernanke wants total control of the dollar, because you know, they know best. Money must be an actual commodity, otherwise it is not real, dangerous and subject to boom/bust cycles, just as bitcoin has been subject to.
I've received a lot of criticism for speaking out against bitcoin because I am supposed to like it, it's almost like I'm required to use it if I am to consider myself an anarchist. All the anarchist online stores deal only in bitcoin. But I will not subject my wealth to a highly volatile non-existent numbers game. And I'm not the only one, people like Mike Adams, Paul Rosenberg, Mike Rogers, Nikolay Gertchev, Patrik Korda, Frank Shostak, Robert Wenzel, Peter C. Earle and Peter Schiff all agree with me and have spoken against the virtual currency. These are people who know what they're talking about and do not make their claims lightly. We need to get rid of this fools dream called bitcoin and get back to basics. Trading via commodities; real money like gold and silver.
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