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Deception surrounds the virtual ‘currency’ called ‘Bitcoin’! Let’s think!

April 21, 2017

I just listened to a video from Jeff Berwick of Dollar Vigilante on the issue of this virtual currency called Bitcoin. His view (watch the video) is similar to that the Bix Weir who also assumes that Bitcoin could be a viable world currency if our $ (dollar) is eliminated and our Fed is abolished. Do these pundits understand what they are talking about? Let’s think about this currency called Bitcoin and the concept that it could serve as a world currency for our markets (independent of an ‘official’ bank currency). https://mail.google.com/mail/u/0/#inbox/15b913e8a369d2bd (https://youtu.be/BfjKq_alTmY).

What these pundits seem to ignore is that Bitcoin is not a physical (hand-held) currency. Bitcoin is a virtual (encrypted currency) and it technically could not be ‘valued’ objectively if our ‘dollar’ were abolished. How can a virtual/digital currency acquire a ‘value’ as a separate stand alone currency? Think on this! Today, this virtual unit gets its ‘value’ by bouncing off our official ‘dollar’ (within our cyber markets). If we eliminate the $ (dollar) how could this unit of nothing be ‘valued’ so as to serve as a stand alone (independent) currency? The purpose of any currency is to serve as a ‘tool’ for valuation of goods/services.

If Bitcoin were used (independent) of our official $ (dollar) it must be given a specific ‘value’ so consumers/traders could exchange this unit for other goods and services. This is impossible if our $ (dollar) is abolished and/or eliminated. Today, Bitcoin is given a daily ‘value’ by using the $ (dollar) as its reference currency. Without the $ (dollar) or another official bank reserve currency, it would need to stand alone as an independent currency. Is this possible for a private virtual/digital currency which technically does not exist (outside the human mind)? Bitcoin is virtual and resides exclusively within cyberspace (our extended consciousness). What is cyberspace? Cyberspace is given reality by humans as they visualize images and text within this computer created space!

Cyberspace is a space created by connecting a bunch of computers. It has no independent existence within our time/space continuum. Bitcoin lives within cyberspace and can not be hand-held or physically exchanged. I can not exchange this unit with you for a real good (say a cow, pig, truck, smart phone, etc.). All I could do is provide you with ‘numbers’ within the computer and these ‘numbers’ would have ZERO value (as independent images/text). This idea of Jeff and Bix can not work in the real marketplace of exchange. Mr. Berwick and Mr. Weir need to think about the ‘nature’ of Bitcoin and the ‘nature’ of virtual reality (cyberspace).

Our digital $ (dollar) works because we have a Central Bank which ‘mandates’ that I accept this unit of nothing. It works with all our other digital currencies because all these other currencies also are ‘mandated’ by our global monetary system. Take away the banking system and the forced use of these official currencies and we end up with a barter exchange marketplace. Bitcoin would need to be evaluated at this point and it would be rejected by everyone (who comprehends ‘value’ and reality). Bitcoin is a unit of nothing, living within an environment of nothing (cyberspace). Wake-up Jeff and Bix to the realities of real currencies and observable reality!

Gold and Silver could be used to ‘define’ a new currency and then this new currency could be promoted as having ‘value’. Why? Both Au and Ag exist within our time/space continuum and thus could work in the real marketplace of exchange. Bitcoin and all the other Alt digital currencies can not work independent of some official banking currency (to give it ‘value’). The whole purpose of trade is to ‘value’ exchanges between counterparties who trade real goods. For a currency to work it must be perceived as physical (existing in space/time) and it then must be given some ‘objective’ value so trades can take place. Pass this missive on to Jeff and Bix for their counter arguments! Enjoy! I am: https://kingdomecon.wordpress.com.

Do these pundits KNOW what they are talking about? I don’t think so!

Image result for bitcoin a virtual currency

If we eliminate the $$$ (as an official mandated bank currency) then what is Bitcoin’s ‘value’? It is a virtual unit of NOTHING (with zero ‘value’) without an official currency to bounce off of! Bix and Jeff seem unaware of the marketplace reality when official currencies are abolished!

Image result for Bix Weir

Bix Weir is also pushing Bitcoin as a viable private (independent) currency for our marketplace!

Image result for Jeff Berwick

Jeff Berwick assumes that Bitcoin could serve as an independent currency for our global marketplace? Does he understand reality?

21 Comments leave one →
  1. therooster permalink
    April 21, 2017 4:13 pm

    Enter this fact into the argument, Don.

    All real-time debt-free economic transactions systems rely on the dollar’s price model service for measurements.

    This includes all crypto currencies and goldmoney too.

    The USD has been courting gold to the alter of real-time debt-free transactions since 1944 in the wake of the price peg liquidity problem in the 1930’s. .

    Tell this to a bitcoin pundit and watch him go screaming from the room. LOL

    Bitcoin wouldn’t even exist had it not been for the global price model …. and yet they rebel against the creator.

    Like

    • April 21, 2017 6:41 pm

      Good points, Dan. D

      Like

    • April 22, 2017 10:16 pm

      Dan: Yes, bitcoin pundits think that this virtual currency can replace the dollar. D

      On Fri, Apr 21, 2017 at 4:13 PM, Kingdom Economics – The Future Is Now wrote:

      >

      Like

      • therooster permalink
        April 23, 2017 4:46 am

        The US and the west put actions into play in 1944 to create a floating price model that was not applicable to gold until 1971. Once the gold price peg was severed and the gold price “settled into” that price model where the USD was the “measure of measures” , the stage was set for re-monetization of gold directly from the market and directly by monetizing gold’s mass as a unit of account….. mass that is debt-free regardless of whether gold trades for $35/oz or $10,000/oz

        BW was licked off in the wake of the FDR liquidity crisis that was predicated on the fixed price peg in the 1930’s .All they did then , however, was postpone the problem with a higher fixed price ($35) for the one previous ($20.67) but that was just a stop gap measure.
        They knew. . Real-time values would come later. The BW agreement appears to have been the beginning of the end for the fixed price on gold. Good thing too ! We now have a solution that can purge massive amounts of debt without serious damage to the economy. It’s all in the hands of the consumer now, bottom-up.

        Goldmoney.com/r/0UZxqF

        Like

      • April 23, 2017 6:58 pm

        Yes, gold is valued by an imaginary $ and I can purchase this metal directly with no debt. Value, however, is an imaginary result…derived via the imaginary $.

        Do I desire imaginary $$$ for by savings or would some physical gold bullion be Superior? I choose physical Au and physical Ag. You can have your imaginary​ $$$.

        Time to wake up to reality and shed illusion! D

        On Apr 23, 2017 4:46 AM, “Kingdom Economics – The Future Is Now” wrote:

        >

        Like

      • therooster permalink
        April 23, 2017 8:33 pm

        The USD has value as a relative measure , not an absolute measure however.
        The price model is now being used to compare the prices of 2 debt-free economic widgets, where on the basis of agreement, the two debt-free widgets can trade for one another with no debt involved in the trade, whatsoever. It’s barter in spirit.

        On the basis of using the price measure in this manner to support debt-free trades, debt supplies can be SAFELY purged in massive amounts. Is this to your liking ?

        Like

      • April 23, 2017 9:30 pm

        It’s too my liking…If True. Unfortunately, Dan, your perceptions are rather flawed when it comes to understanding the concepts of debt purging. The $ is a unit of debt. It is called a debt/credit currency. It is recorded officially as a liability on the Fed banking ledger. Your perception of purging debt with more debts reveals your misunderstanding of this unit. Our Fed issues and records this unit​ as debt. What is our current debt? Go to http://www.usdebtclock.org and witness the numbers. D

        On Apr 23, 2017 8:33 PM, “Kingdom Economics – The Future Is Now” wrote:

        >

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      • therooster permalink
        April 24, 2017 4:59 am

        Note quite , Don. In the world of e-commerce, the dollar is like a segment string with two distinct ends. We have the currency at one end, meaning the debt based medium of exchange as you see it and have described it, above. On the other end , we have the price model. We use the price model in debt-free trades when using gold as a settlement currency.

        Note that the price model could not be created without the necessary evil of the debt based medium of exchange. We can’t create a segment of string with just one end, can we ?

        When I trade an ounce of gold that’s priced at $1280 for two new suits that are priced at $640 each , I’m making a debt-free trade in the straight swap of the bullion for the 2 suits.
        There’s no debt in that trade. I used the price model in the mathematical determination of the settlement weight for the trade. The use of the pricing model was indispensable to the calculation. I need the price of the suits and the current price of gold, in real-time, to determine the right gold settlement weight of one ounce. The dollar only plays a measurement role in comparing the price of the suits to the price of gold. It’s relative concept of market comparison.

        On the prospect of society using the price model in this manner on a more popular basis, the need for debt becomes redundant and therefore, interest rates on existing debt can rise safely to have debt purged from the system , without great risk to the economy.

        The price model always exists whether there is $100 Million USD in circulation or whether there are $100,100,100,100,100,100 UDS’s in circulation.

        Debt can now be safely purged on the basis of using gold as a debt-free currency in conjunction with the global price model. It’s now self evident , Don. This is exactly what the goldmoney supports. Be happy !

        I think you should copy this post and discuss it with others, before you respond. It may help to get a better market perspective by getting some more eyes on the issue that I just presented. It’s fairly academic , IMO.

        Like

      • April 24, 2017 2:51 pm

        Dan: let’s assume everyone (all US consumers) use your gold price​ model. Where do these consumers get their new $$$ to continue their consumption…for future purchases?

        $$$ are continually needed to keep our economy growing. These new $$$ are created as debt/credit. Our Central Banks continue the Ponzi scheme as your gold price​ model operates.

        Debt never gets purged, Dan. We live with a continuation​ of Keynesian debt economics. Think! D

        On Apr 24, 2017 4:59 AM, “Kingdom Economics – The Future Is Now” wrote:

        >

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      • therooster permalink
        April 24, 2017 3:48 pm

        Don … did you put the gold into circulation ? I think you overlooked that. The debt purging is on the back of an improved economy that is supported by gold circulation. People in the US now have a choice to use gold currency instead of fiat currency.

        If the economy can be improved on the basis of asset based currency, there becomes a diminishing requirement and need for debt. Why would anyone need to rely on debt so much when they can buy economic widgets and pay bills with gold ???

        Dollars (as currency) are NOT continually needed to keep the market going , as you assume. Americans are switching to the market choice of gold money on a daily basis.

        The choice is there for the market to make.

        Goldmoney.com/r/0UZxqF

        Like

      • April 24, 2017 6:43 pm

        Dan: A gold currency means defining the ‘$’ in terms of Au and then ‘minting’ coins from/via this definition.

        If this were done, we could have a debt free currency unit. Ask Thomas Jefferson on this issue.

        Best! D

        Like

      • therooster permalink
        April 24, 2017 8:21 pm

        TJ could never utilize real-time pricing in his day any more than you can pour new wine into an old wineskin.

        If I trade gold for two $640 suits ,I need that total price of $1280 from the price model of the suits in order to compare it to the real-time gold price in order to settle the trade with the right amount of gold weight. If that gold price is $1280/oz, then one ounce will be the settlement amount . If the gold price is $1290 , the settlement mass will be slightly less. The price model is the comparative measurement tool.

        Is there something wrong with the math ? What is it that you aren’t getting about this debt-free trade ?

        It appears that you keep looking at the dollar as if it has to play a role as a currency and only a currency. It doesn’t. It can play a role “at the other end” , as a price tool, only.

        Just because a new suit has a price that may be denominated in USD’s does not mean that the settlement has to be in dollars. Based on a free market agreement, it could trade for anything that has the same price value …. or even something close to it.

        What is the problem ? Have you been tainted with an illegitimate belief that you cannot get past ? The dollar is more than just a currency. It’s also a measure.

        Gold cannot make for a highly liquidity currency of value where the trade value has scalability if the trade value is fixed like it was during Bretton Woods. You’d run out of gold over time. Fixed price gold is a liquidity nightmare in a currency system. The trade value has to be free to float as per market fundamentals.

        Like

      • April 24, 2017 10:22 pm

        I have my silver coins. This is debt free money. Do you accept my silver coins for purchases? Each are 1 ounce of pure silver. D

        On Apr 24, 2017 3:48 PM, “Kingdom Economics – The Future Is Now” wrote:

        >

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      • therooster permalink
        April 25, 2017 5:04 am

        I do accept silver and gold. What to do you wish to trade your silver for on the basis I have many of the lifestyle products that are likely to use in your daily life ?

        Like

      • April 25, 2017 8:43 am

        I will trade for any good that I need. I do not want your digital $$$$, however. Keep them within your conscious mind. I don’t want them. D

        On Apr 25, 2017 5:04 AM, “Kingdom Economics – The Future Is Now” wrote:

        >

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      • therooster permalink
        April 25, 2017 9:23 am

        No intention of giving you any debt dollars, don’t worry. We;ll make a debt-free trade, economic widgets for gold. Simple.

        Shall we set the price model back toward a subscription of market law while we’re at it too ?

        Like

      • April 25, 2017 9:51 am

        I want no price model. How many 1 ounce silver coins do you propose for your widget? I will counter with my proposal. D

        Like

      • therooster permalink
        April 25, 2017 10:08 am

        How can we determine fair a ratio for each of our economic efforts ? Something
        that reflected the supply and the demand would be handy if it could support this debt-free trade.

        Like

      • April 25, 2017 2:43 pm

        Fair is whatever we both end up agreeing upon. D

        On Apr 25, 2017 10:08 AM, “Kingdom Economics – The Future Is Now” wrote:

        >

        Like

      • therooster permalink
        April 25, 2017 3:29 pm

        OK.

        So if I offer you a couple of nice new tailored suits for an ounce of gold on the basis that you’re in the market for 2 new suits, would that be fair for you ?

        Like

      • April 25, 2017 5:03 pm

        I agree. D

        Like

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