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The Future of Currency - Bitcoin Return to Homepage



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BitCoin Directory



Date This Article was Originally Published:  April 10th, 2013.



Added August 7th, 2014


Internal report revealed cryptocurrency would supercede existing Fed monopoly within 12 years.  This report was published by a researcher employed by the United States Federal Reserve.
http://www.infowars.com/whistleblower-fed-highly-alarmed-about-bitcoin-conquering-dollar-system/

 

Physical Bitcoins are now available

 Physical Bitcoins are available through Casascius and BitBills. Those places only accept Bitcoin, but you can get them with a credit card through MemoryDealers.

Bit-coin or a similar type of currency is a decentralized currency that no one can charge interest on, track or freeze.  It has already gained tremendous popularity as the Cyprus banking collapse and Greek banking systems failed. One of the main problems people have with BitCoin or similar type systems is that they think drug dealers and money launders will use to evade the authorities.  No amount of freezing drug traffickers bank accounts has stopped or slowed the drug trade in anyway, and as far as money laundering go, continued restrictions and new laws have not stopped this from occurring either.  As a matter of fact the U.S. Department of the Treasury, which is responsible for the flow of money sees this new form of currency so thwarting, they have now categorized it as a form of money laundering.


Another issue is tax evasion. People pay in cash all the time, and still evade taxes, so there is another reason not to fear the coming Bit Coin Revolution.  One of the major advantages of Bit Coin is that because most drug transactions take place on the street, mobile phones are used to make a digital payment via Bit Coin.  Anyone with some simple programming skills can make a cell phone trackable, and most drug dealers are not smart enough to encrypt or use extra security with their Bit Coin accounts, making tracking drug dealers easier than ever.  When cell phones come with scent detection devices, you could write an AP or program to have it detect cocaine on the cell phone, than track the phones that have cocaine residue on them and forward it to law enforcement.  The abilities of this technology are endless.


As long as a sensible person backs up their Bit Coins and takes the proper security precautions, they can never be tracked or lose their Bit Coins.  BitCoin began in 2009 and is still in its early developmental stages. Bitcoin is currently in the early stages the Internet was, people are ignoring it and trying to avoid using it, but within the next 10 years, it is set to take over many of the major financial transactions we now take for granted.



Privacy and Anonymity


Bitcoins real power is in its privacy. Bitcoin is completely untraceable, because it uses peer to peer networks which have not centralized tracking system.  This means no one can take the funds, or freeze funds like the digital network PayPal does and which has done to my customers. Also the peer to peer networks are what make free movies available to you on the Internet such as Megashare.com and many more others.  This makes BitCoin practically untraceable and impossible to shut down.  This also means that rogue governments, private corporations or anyone who wants to snoop around your financial transactions can no longer do so.  This is why MasterCard and Visa are completely scared of Bit Coins potential and are watching it closely to take it down via its weak points.


Bitcoin is not FDIC Insured, but cannot hyperinflate like real money can.  It is not subject to interest rates or a crash in the stock market, but on the other hand grows in financial crisis, like what happened in Cyprus.

Bitcoin gives everyone the opportunity to bypass the Euro or other currency and go anywhere in the world BitCoin is accepted and pay for goods and services. Bitcoin automatically adjusts its exchange rate to the currency of the country you are in.  So if you gather many bit coins in the U.S.A, and go to Africa, you are live very, very well. Bitcoin cannot be controlled by any Federal Reserve Banking System and has the potential to make inflation obsolete. It is safer than hoarding gold, which can be stolen or confiscated by governments.


Because Bitcoin only began in 2009, it is still experimental and their website mentions that there is still room for improvement, such as the 21 million cap on Bitcoins, and the issue of Zombie Bitcoins which are teh result of people who lose their Bitcoins when their computers hard drive is wiped out or they drop their cell phone in a tub of water and did not backup their Bitcoins. Bitcoin has been a boon in many countries where freedom of the press has stopped writers from publishing topics that are politically sensitive. 


Here are some of the facts about BitCoin:


You can create a new wallet for each Bitcoin Transaction. 3rd Party Bitcoin wallets can be easily traced, especially by authorities, making drug trafficking easier to track and most cell phones already come with government embedded chips anyway.
Bitcoins can be lost or destroyed as mentioned earlier
Bitcoins can be backed up to an online service, but must be secure to prevent hackers stealing them.
The Treasury Department at this moment in time has not forbidden the trading or restricted bitcoin use, because this system of monetary transaction could be the perfect buffer or replacement if there is a huge financial crisis in the United States, where a new form of currency is needed to continue transaction to keep the economy going.
It has the ability to make great depressions and economic bubbles obsolete
It is the closest thing to a long term stable financial currency

The Founders of BitCoin


Bit coin was invented by  a group of people knowledgeable in Virtual Currencies and insiders who know the markets well.  They put together a framework based on digital transactions that was secure and could not hyper-inflate like paper currency. Because the monetary base of bit coins cannot be expanded, the currency would be subject to severe deflation if it becomes widely used. The inventors had a very good knowledge of virtual currencies and were fed up with the corruption and lying and cheating of the current financial system, especially the stock markets.


As this chart shows by the year 2033, the Bit-Coin economy will reach full stability and has actually gone through periods of deflation, which is a favorable, because it is not based on actual interest rates or quantitative easing type measures which are causing buy  false deflation.


You can buy Bitcoins by telephone, on a website called coinbase, by the computer program second life, wire transfer, or by cash deposit at a CVS Pharmacy.  A traditional FIAT currency destabilizes over time, but Bit coins stabilize and actually increase in value over time.


Bitcoin is capped at 21 million coins, but changes are made for growth as their website mentions. Any tampering in the manner "why fix it if it ain't broke" is the golden rule for this new system.  And as long as it is performing well, there should only be minor bugs and errors to keep it maintained successfully.


Bit Coin Security Basics

Back up 80% of your cash assets to gold, silver and 10% to precious metals, and the remaining between 7% and 20% to bit coins and replenish as necessary.  You could also live off the value of your golds or metals value increasing.  

Trust is the foundation and core of which will mature bit coin and its future.  Just as e bay was a success because it built a system of trust based on the feedback system, this is already proving itself in bit coin as those who have lost money have only been those who sent or received money from those that did not build up this element of trust.  

So if a website has been online for years doing business and this trust has been established, the incidence of loss is much less. 

Starting Your Gold Collection

Make multiple back ups of your bit coins to multiple separate thumb drives and store in a safety deposit box.

Create a new digital wallet or signature for large new transactions.

The fact is the future if managing and receiving money is going to be mire complex, and involve more responsible self management, as it should. 


Futher Reading:
Bitcoin FAQ


Stanford University review on the stability of bitcoin


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