crash4

EDITORIAL
Bitcoin: The Other Crash?
By Anthony Wile - January 16, 2016

People are grappling with market turmoil after Friday's equity slide, but there was a good deal of action in another financial instrument: Bitcoin.

Bitcoin moved down some 10 percent on Friday after one of its significant developers, Mike Hearn, claimed in a startling blogpost that the cryptocurrency was now a failure.

Hearn used a publishing platform, Medium, to make his announcement, writing, "Despite knowing that bitcoin could fail all along, the now inescapable conclusion that it has failed still saddens me greatly."

Hearn's views are reportedly aligned with Gavin Andresen, another famous developer. The controversy pits Hearn and Andresen against other developers over the issue of whether – and how – processing speed for bitcoin "blocks" should be expanded.

Each block has a one-megabyte "artificial" processing capacity that only allows three payments per second. According to Reuters, Hearn and Andresen are now said to be promoting their own bitcoin software, called Bitcoin XT, which provides 24 transactions per second. The software would reportedly expand the number of transactions year over year.

There's a sticking point, however. Computers that "mine" bitcoin, many of which are in China, aren't using the new software. Reuters interviewed Hearn in December and quoted him as saying that, "if an IT system runs out of capacity … then all kinds of things go wrong – all hell breaks loose."

Hearn also said that, "The current price of bitcoin is supported almost entirely by people speculating on its future, in the assumption that this could be the money of tomorrow … So if the network starts to collapse, then a lot of people are going to look at it and say: well maybe we've miscalculated (its) future value."

The programmer's open letter was big news, with mainstream media outlets such as The New York Times, The Guardian and Fortune reporting on his decision. Hearn's language was in fact dramatic if not apocalyptic:

"Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked 'systemically important institutions' and 'too big to fail' has become something even worse: a system completely controlled by just a handful of people."

Critics of Hearn maintain he has ulterior motives, as he is working with a group of banks, now said to number around 40, to revise the blockchain technology supporting bitcoin and to generally make bitcoin more banker friendly.

Given Hearn's affiliation with banking startup R3 CEV and his emotionally charged language, it was easy for some in the bitcoin community – never enamored with large banks – to claim a conflict of interest. In fact, fingers have been pointed since Hearn joined R3 last year.

But Hearn's recent statement obviously aggravated a growing rift and the reaction has been significant. In addition to the sell-off, Hearn has now been branded a "blatant liar," and his recent post has been characterized as "whiny." Developers such as Eric Lombrozo have provided rebuttals.

Lombrozo was quoted recently by CoinDesk as saying that developers can now deploy bigger blocks, "in a way that is backwards compatible and is practical and safe and can be rolled out soon."

Here at The Daily Bell, I've always been a bit skeptical of bitcoin because of what I considered to be an over-enthusiastic portrayal by supporters. For instance, we pointed out that the TOR facility that is supposed to keep bitcoin transactions anonymous was developed by the US military, of all groups. And we predicted long ago that bitcoin would be afflicted with continued, serious security breaches and embezzlement. All that has taken place.

Gold, physical gold especially, is a proven money medium when it comes to anonymity and liquidity. Around the world you can always find someone to buy and sell gold. And if you don't want to deal with public, regulated channels, you can arrange private transactions.

I have no axe to grind with bitcoin, but I've never thought of it as a replacement for precious metals, even though some have been intent on characterizing it that way.

Gold and silver have been around for thousands, perhaps tens of thousands of years. And as we just pointed out yesterday, if the West enters a period of prolonged stagflation, people will once again discover just how valuable owning gold can be.

Given the current market turmoil, you ought to consider precious metals if you haven't before, or contemplate adding to what you have. Not just physical metals, either. Junior miners such as Seabridge – a company we've covered in the past – may prove lucrative if the mining sector heats up. And physical gold and silver have retained their value since ancient days.

Historically, the record is clear. Gold and silver have a place in your portfolio.

Posted in EDITORIAL
  • PatrickHenry1789

    Yep, you guys called it a good while back. I always felt the same way about bitcoin as well. I decided to follow the Ann Barnhart investment advice. “Don’t buy ANYTHING that you can’t stand over and guard with an assault rifle:. The only thing I took umbrage with was her using the word assault before rifle.

  • 2bvictorius

    Bitcoin is just a bit much for anyone, but, the pure gambler or fool with lots of dollars but zero sense. The very fact that so called sensible people actually think (or thought) it a good idea, scares the daylights out of me. Electronic money or claimed wealth of any type without proven value other than that created by the seller is fools gold. period.
    It seems some would realize that is exactly why we are a bankrupt nation without much chance of ever becoming solvent again. at least within the next hundred years.

    • Bruce C.

      It seemed to me that a lot of people bet on “bitcoin” not really understanding it but hoping those who claimed to were right. It’s an example of the old Wall Street adage: Buy the rumor sell the news. Of course, in theory, that strategy CAN pay off big if you get in early enough no matter how absurd the “investment.” It may be apocryphal but supposedly there are some people who bought, say, $20 worth of bitcoin when it was in its infancy and worth about $0.001 each and sold out when they were over $500 each… Wait, did I say that MAY just be apocryphal?

    • Don Duncan

      Since 2007 I have had 90% of my wealth in gold/silver coins. As a “hard money” advocate I recognized the greater potential of electronic money. The value of money comes with exchange. Exchange requires two. I don’t know of anyone who uses PM daily as a medium of exchange, therefore I keep 10% in electronic dollars. And it’s more convenient than hard money, or cash. Before I paid cash for everything, now I am hooked on the benefits of plastic, as most are, i.e., we are already predominately a cashless society. Bitcoin was a way to boycott the dollar, but it requires mass adoption, mass confidence. I loved the idea of bringing down the international banking cartel and escaping their monetary exploitation but this is not possible without more people understanding monetary theory, or failing that, losing faith (unsubstantiated belief) in the dollar. To be fair, from the view point of the masses, the dollar “appears” to be working, in that it has lost value slowly enough to be overlooked by most. The masses don’t feel cheated by the dollar system, and they won’t until price inflation becomes greater. How much greater? That, no one knows. I’m waiting and wondering how TPTB can inflate the money supply so much and it be seen as price inflation so little, comparatively. I have been hearing from the Austrian economic monetary theorists that the shaky dollar might crash NEXT year since 1971. I can’t find any flaws in their arguments, but after 45 years, I am convinced that our monetary theory is lacking if it can’t be more accurate time-wise.

  • Earn nest

    I still think the Texas gold bank is a breakthrough.

    • http://DennisLeeWilson.com Dennis Wilson

      Texas is a government and you would trust it with your gold? Take a look at this beautiful bridge in Arizona that I will sell to you!

      • Earn nest

        No Dennis but we really do need a currency to trade with. Also it bodes well for any secession movement, you can’t have anarchy nor in reality secede but much is in fact possible if we all join together as a team.

        • http://DennisLeeWilson.com Dennis Wilson

          “but we really do need a currency to trade with.”

          Gold and silver coins in YOUR pocket fill that role.

          It was nice that the Texas government got their gold out of New York. If they were serious about helping their Texican citizens, they would turn that gold into coins (or “medallians”) and SELL them to their citizens.

          History has shown that NO government can be trusted, especially with their citizen’s gold.

  • Praetor

    Everything about Bitcoin was wrong. The words associated with Bitcoin, cause one to pose! CIA, MIT, Military, Electronic, Computer, and the ‘Over Selling’ of something being used for nefarious purposes. I have always felt Bitcoin was a trial run for a cashless society and system based on credits. Credits to those who will and no credits to those who will not, you can extrapolate from this what you will. A system based on credits, is the ultimate system of control. Your credit worthiness will be your status in the future socio-economic system. You are found un-worthy or of not much use, your status in society will be low to non-existent. Your high credits worthiness score or the lack of, will be your life and your status. What a system, the ability to pick winners and losers, who makes it, who doesn’t!!!

    Not to worry, 96 million not working and not looking, 2.5 trillion underground economy, 50 million being feed by the government. I surmise, secession and insurrection has begun. The end of the credit credits worthy system cannot and could not last. Slavery and Natural Law are incompatible, and Human Action is now in play. May the forces of nature show them who is boss!!!

    • Mack

      I agree. Even if I could fully grasp how Bit coin functions, it still seems at the disposal of government (ultimately). That is precisely the problem with any currency. I will still take gold and silver. To me they cannot ultimately be controlled.

  • gamathers

    One thing I should point out is that the “security breaches and embezzlement” was not due to the block-chain technology but rather security lapses that could happen to an online bank or someone trusting their gold to another person or company. Bitcoin has attributes to both gold and currency. It is like gold in the sense that only so much can be created. It is like currency in that it is easy to purchase items with it. It is like a credit card in that out of country purchases are easily accomplished. If you are thinking that Bitcoin should only be compared to gold as a storage of wealth then you might as well have gold. But if the economy collapses and you want to buy toothbrushes from China gold will be hard to use.

    • digriff

      I personally don’t buy into the tale of “only so much can be created”…..ones and zeros…..at somebody’s whim.

  • Ann Crampton Finn

    What happens if we have an EMP event that takes out the power grid and Internet for an extended period of time?

    • http://www.thedailybell.com/ The Daily Bell

      You’d probably have trouble using bitcoin.

    • Dimitri Ledkovsky

      You’d have to fire up grandma’s old wood stove….and walk a lot….and start using the library again….and grow a garden….and use precious metal coinage for monetary transactions….etc.

    • Mack

      We would have to read The Daily Bell in paper form :)

    • NARF

      you`d very likely be dead within 2 weeks…so it wouldn`t matter. Seriously….98% of the worlds population has done NOTHING to prepare for such an event…how long do you think they sit on their hands doing nothing? In 3 days the big cities become a war zone…in 2 weeks “they” are going everywhere looking for food, heat and shelter.

  • Bruce C.

    There’s a good analogy I learned recently in a video I posted a few weeks(?) ago, which is this: What would you think of an insurance policy that you pay for only once but is good forever and has the track record of paying every claim for thousands of years?

  • Bruce C.

    Bitcoin is a good, modern example of never to invest in something you don’t understand.

    • Kris Szczepanski

      How so?

  • Samarami

    “…I have no axe to grind with bitcoin, but
    I’ve never thought of it as a replacement for
    precious metals, even though some have been intent on
    characterizing it that way…”

    Agreed — totally. Whenever I enter into an exchange, I like to give and receive “something for something” besides religious faith. Anything other than a tangible object (that has definite and specified exchange value) is religion pure and simple. Faith.

    I’ve always been suspicious of “Bitcoin Mining”, et al. I’d like to see what it is you’ve “mined” if that’s indeed what you’re claiming. Perhaps I’m just old fashioned (forget my libertarian-ism heresy), but I’d like to hold your specie in my hot little hand for a minute or two before spending it.

    And, as another commentator has mentioned above, you also must have “faith” in the power folks, along with the psychopaths who “allow” the internet to go on. Supposedly, it is possible or conceivable for “powers” to pull the plug and block the web “legally” (as though anybody ever expected psychopaths to follow legalities when their tail is in a bind). “Bitcoin” has little or no “value” without a compooter up and running and the internet accessible wherever you happen to be.

    To repeat something I’ve previously posted, I carry around with me a 1921 Morgan silver dollar. It’s showing some minor wear, but is still valued at around 30 US federal reserve notes if I choose to buy one like it at a coin shop. It will purchase approximately the same volume of gasoline today as it would around 1946, 70 years ago. That’s about the year a long-gone aunt gave it to me. I’ve used it countless times as an economics specimen — to illustrate that “prices” have not “gone up”, but that the faith-value of fiat “money” has “gone down”.

    Bitcoin smacks (to me), of fool’s gold. Sam

    • Fred Bastiat

      I had a small romance with Bitcoin. A free market currency used globally to compete with fiat currency sounded attractive, it struck certain fanciful and rebellious cords with me. Ultimately though, I decided it was not an experiement I wanted to invest. Bitcoin exists at the whim of government, the slightest regulatory sneeze could blow it apart. And as a currency for exchange or to store value, it is not backed by real property, promissory, or a real unit of labor that I’m able to quantify – who do I seek out when I want to exchange that stored value? I understand the desire for competition to fiat currency that can be used on the internet and globally, but bitcoin seems to not be trustworthy. To store very much in bitcoin seems a mistake to me. Personally, I like real estate that I can assert ownership from a free market exchange, precious metals (real not paper paper commitments), and no harm in equipment, food, bullets, booze, and guns. Ultmately, from a competing currency I want tangible property underwriting its stored value.

      • Samarami

        I think “real estate” (especially agricultural land) can be an excellent investment for increasing wealth. But at this place in time “title” is still a function of psychopaths who group themselves into that abstraction we like to call “government”. Not only does “eminent domain” factor in, but when the final bell begins to toll tax assessments can be manipulated to make retaining “title” costly.

        I’d agree with physical metals (not ensconced in bank safety-deposit boxes — bankers are agents of state). Equipment, food, bullets, booze, and guns also have merit.

        Reminds me of our old friend Tom Hall, who might have the right idea:

        https://www.youtube.com/watch?v=vnvMcX95G20

        Sam

        • http://www.thedailybell.com/ The Daily Bell

          Interesting point about farmland …

        • Fred Bastiat

          You are so right: Title, use, and control over everything we buy is under the whim of the psychopaths. When the government tells farmers the rain on their property is not theirs to use as they see fit, it’s clear to me the state doesn’t have any reasonable limits and can devalue or steal anything. Government use restrictions and government taking are the toughest part of financial planning. Imaging a world without those barriers and financial planning becomes a breeze.

          All this aside, government currency is the most frightening place to try and store value. Just one of governments many crimes is theft through currency devaluation and the mandatory uncertainty they force everyone to live.

          • dauden

            Just look at the turbulence the ranchers in Oregon have been forced into because govt wish to own more of the resources in the West. I’ve been buying Red Desert Clay for metals chelation out of Arizona. But no more. This mine has now been stolen by Eminent Domain last December.

    • Dimitri Ledkovsky

      Newspeak gold.

  • Shark-Proof

    There are already several other crypto-currencies which rely on different software. Bitcoin is valued highly because it was the first of its kind. As the first example, it is lacking in features which successors have implemented. These other currencies are more desirable from a technical standpoint, so in this sense, bitcoin is overvalued.

    • LaPautaX

      So which of them would you consider as better? And if it the Daily Bell thinks that BitCoin isn’t that “trustworthy”, how about analyzing the Market for Crypto Currencies? I mean of course it is true that precious metals were useful mediums of exchange throughout history but until the invention of the automobile, horses also were useful for transportation for thousands of years…

      • digriff

        One big solar flare and you will wish you had a horse and some gold.

        • LaPautaX

          Ya of course you right.. in this scenario crypto currencies would totally fail and the horse and precious metals would be more valuable than advanced technologies. However, in the scenario of a collapse of the fiat currencies and the global financial system (with no simultaneous solar flare) crypto currencies really could be an option for a bunch of people, because obviously they are way more easy to transfer over long distances than precious metals (while that does of course not exclude the possibility that precious metals would also become more valuable at the same time). So next to gold it’s probably not that stupid to think about the option of holding some crypto currencies in your portfolio to cushion the effects of a global financial collapse.

        • NARF

          “one big solar flare” and you won`t be out spending your gold OR riding a horse anywhere. The unwashed masses will VERY quickly be out in the streets looking for “stuff”….the first 6 months would be a bloodbath.

      • Shark-Proof

        I agree with the DB in that cryptocoins won’t be replacing gold or silver. When processing payments with BTC, the transaction may not be confirmed as fast as some users might like. While I understand that this can be addressed, not all users who send the payment do. There are other systems which claim to process the transaction faster. I am not an expert on cryptocurrencies, so for specifics you’ll have to do your own research. I have noticed some user disappointment with this issue however.

        • LaPautaX

          Ya you definitely right I have to do my own research, but to hear the opinions of others helps to do a “proper” analysis on such things.

  • snax

    There is a lot of ignorance in this article, the journalist is clearly out of his depth writing about Information Technology.

    ” And we predicted long ago that bitcoin would be afflicted with
    continued, serious security breaches and embezzlement. All that has
    taken place.”
    – There have been no security breaches or embezzlements with bitcoin, only with 3rd party institutions holding bitcoins. Does Bernie Madoff invalidate the whole US dollar? Does a fraudulent gold smith operating a fractional reserve bullion bank invalidate gold?

    “TOR facility that is supposed to keep bitcoin transactions anonymous was developed by the US military, of all groups”
    – Doesn’t matter who made it, it’s open source.

    Bitcoin is not gold. This article frames the conversation around a false paradigm, as if you can only own gold or bitcoin. They are two different things, and the reasons to own them are different.

    • http://www.thedailybell.com/ The Daily Bell

      You seem a bit defensive about bitcoin. It does matter in our view that the US military created software that people use to enforce bitcoin anonymity. The security breaches and embezzlement seem to us to be a direct outcome of Bitcoin’s organization and transactional needs. We have participated in numerous dialogues in which it soon became clear that counter-parties subscribed to the notion that gold is quaint and outdated. It is not. All that being said, we are happy that bitcoin proceeds and seems to be gaining traction. Anything that provides an alternative private money is a net positive in our view. We would tend to reject the perspective of one of its most important programmers that it is already a “failure.”

      • snax

        Thank you for your reply, I apologize if I came across as defensive or rude.

        In regards to Tor, one of the key ideas behind open source software is zero trust. The inner workings are laid bare for any person (programmer) to look at, you don’t need to trust anybody. Bitcoin is also open source. This is why it doesn’t
        matter who Satoshi Nakamoto is or how trustworthy he is, you don’t need to trust him.

        Do you think there is a problem with open source software in general, or just this particular instance of it? The source code for Tor and Bitcoin has been scrutinized meticulously by people all over the world. If you insist there is a backdoor in Tor, then you are saying everyone else has missed something. That is possible, but you must give evidence.

        In regards to bitcoin theft and embezzlement, yes the exchanges are a weak point, and people have lost money. The faults occurred in the 3rd party infrastructure being built around bitcoin, and there probably will be more as this technology is still in its infancy. But these problems will be solved. CoinFloor, the London based bitcoin exchange, is provably solvent for example (the proof is on the blockchain).

        Blockchain technologies are incredibly robust and persistent, and the misunderstandings about how theft happens give non tech people the wrong impression.

        In regards to gold, yes there are some silly bitcoin proponents who claim bitcoin replaces gold. Too often, on both sides of the debate, people slip into this “It’s either bitcoin OR gold” argument. Of course bitcoin, which is 7 years old, can’t
        compare to golds thousands of years of use as global money.

        I am a libertarian (and a programmer), and in my opinion blockchain technologies (not just bitcoin) have the potential to radically decentralize society. They have the potential to provide private (even anonymous) transactions, outside of the
        current banking / government system. This tech could make banks irrelevant, and lead to a drastic shrinking of the state, as their ability to coerce taxes from people becomes hampered. But this tech is brand new. It’s still clunky to use, with many problems yet to be ironed out.

        I get disheartened to see people who are also libertarian deride this new technology, because of (what appears to me) to be misunderstandings about how it works. Time will tell, I could be wrong, but I honestly think blockchain tech is the solution to the problem of the common person (voter) falling again and again for the seductive lie of socialism.

        Regards

        • http://www.thedailybell.com/ The Daily Bell

          We are not anti-bitcoin and hope that private money continues its ascension. Pointing out some areas of concern is not the same as being a detractor. Thanks for your insights.

        • http://DennisLeeWilson.com Dennis Wilson

          “In regards to Tor, one of the key ideas behind open source software is zero trust. The inner workings are laid bare for any person (programmer) to look at, you don’t need to trust anybody.”

          I am also “libertarian and a programmer”. TOR is “open source” which means that ANYONE can grab a copy, modify it to save IP addresses into a file instead of deleting them, recompile the source and startup their own TOR node. NOBODY CAN DETERMINE THAT THE EXECUTABLE THAT IS RUNNING IS DIFFERENT from the “open source” version!

          If you are a government agency with virtually unlimited funds, you could open thousands of such TOR nodes and start collecting IP addresses.

          According to reported news, the FBI did run their own TOR nodes. That is exactly the way that the FBI was able to identify and shut down hundreds of hidden sites.

          “- Doesn’t matter who made it, it’s open source.”

          “Open source” guarantees nothing.

          • http://DennisLeeWilson.com Dennis Wilson

            From my Diasopra post about a year ago – https://diaspora.koehn.com/posts/422084

            Law enforcement seized Tor nodes and may have run some of its own

            Tor Project poses possible ways seized sites were found…

            I conceived of this scenario (also on Nov 9th) in my comments at https://diaspora.koehn.com/posts/417272 
            — it looks like others, including the Tor Project director and Government agencies, may have also.

            I also reminded readers that TOR received funding from the USA government. Connect the dots and you may also conclude this: TOR is a waste of time and energy! The IDEA has merit but TOR is not to be trusted! Of course, YMMV (your mileage may vary) but there is certainly ample evidence for any who care to look.

            In a blog post written on November 9, #TorProject director Andrew Lewman went over the possible ways that over 400 hidden services on dozens of servers were located by #law #enforcement during #Operation #Onymous.

            While some of the servers were related to criminal activity (such as Silk Road 2.0), at least some of the servers were not—including several that were acting as infrastructure for Tor’s #anonymizing network. And the only answer Lewman could currently offer as to how the sites were exposed was “We don’t know.”

            That’s unnerving not just to people like the operators of the many illicit sites that were taken down by Operation Onymous, it’s also of concern to anyone using Tor to evade surveillance by more oppressive governments. Activists, dissidents, and journalists, for example, all rely on the same Tor infrastructure.

            “If you are an activist or a journalist in these countries, your government thinks you are a criminal,” Eva Galperin, Global Policy Analyst for the Electronic Frontier Foundation, told Ars. “And you can learn a lot about good operational security practices by watching where criminals go wrong reading the affidavits on these cases, because your government is treating you as a criminal.”

            Again, some of the sites taken down may not have been criminal at all. Doxbin, the hidden service that hosted “doxxes”—postings of personal information about individuals obtained in various ways—was seized the same day as Silk Road 2.0. However, it was not included in the sites listed in the Justice Department’s filings thus far—something Galperin noted was “really weird.”

            Additionally, four Tor exit nodes in Amsterdam and six in a Miami datacenter were taken offline during the joint operation by the #FBI, #Immigration and #Customs #Enforcement, and #Europol member law enforcement organizations. One operator of a Tor relay—which the man ran from home—was reportedly raided by law enforcement agents. Ars has reached out to confirm the report but has not yet received a response from the individual.

            continued at

            http://arstechnica.com/security/2014/11/law-enforcement-seized-tor-nodes-and-may-have-run-some-of-its-own/

            Dennis

  • Kris Szczepanski

    “In 2015, with the exception of people that held Bitcoins, the performance of all asset classes was poor.”

    Marc Faber January 2016

    https://www.youtube.com/watch?v=6Oq_Ze8LG-Q

    • Mack

      Wonder how Bit coin holders will fare this year…

  • Randy

    BitCONJOB isn’t a thing at all, just some numbers cooked up out of nowhere by some very powerful computers that do nothing but churn and grind 24/7/365, eating up lots of electricity!! WHERE is the substantial amount of human labor in it which is what gives ANY medium of exchange its longevity and perceived purchasing power?? Fiat paper currencies ALWAYS fail, make no mistake about that at all. Digital representations of a medium of exchange will all fail too, for the exact same reasons. With over 600 crypo-currencies listed on coinmarketcap.com, you are free to speculate on any or all of them. Just don’t think that when your computer goes dark you will still have anything to buy a loaf of bread with there.
    Once again, Sam, you’ve knocked it out of the park with your comments below! The ACTUAL value of a PM always remains, despite any diatribes thrown at it. I’ve got one of those dollar coins as well, struck at the Denver mint she was, and DAMN she looks good for her age!! She’s got a couple of blemishes around her edges, but her face is still very easy to look at and you can see her locks look like they were just combed up. Her level of desirability is as high as it ever was, you can bank on it!! When the capital controls kick into high gear and the 401s get snatched up, my little Lady Liberty will really come into her own and prove her worth.

    Randy

  • Charles Savoie

    After I released “Pilgrims Society Takeover of Bitcoin” in January 2015, several sites that were featuring my research dropped coverage. Coincidence, or other issue? No one has challenged my documentation. http://www.silvermarketnewsonline.com/articles/TakeoverOfBitCoin_Savoie012315.pdf
    During the closing decade and a half of gold and silver price suppression, it was predictable that the price managers would concoct artifices for the objective of extending their control. Accordingly, since too many investors grew wary of COMEX PM call options that always expired out of the money, exchange traded funds were connived to add life to the rig job. These also vitiated the mining industry to a real extent. Finally came Bitcoin, the proof being Matt Mellon II taking over a leadership role as documented in the link. While his great uncle, Andrew Mellon, was a three term Treasury Secretary, he cheated USA silver miners out of $14 million by violating the terms of the Pittman Act of 1918, and his Supreme Court cronies validated his illegal actions. Absent Bitcoin, gold and silver prices would have broken free of restraints several years ago. All is as planned. Secretary Mellon, whose fortune was “equal to the entire value of all the property in the State of Texas” (Congressman Wright Patman, 1932) and the $29 trillion Bank of New York Mellon bears his family name. As of 1934, Mellon was on the executive committee of the USA branch of The Pilgrims Society, sponsored by the Crown of England. PM only aficionados are not running around in a library hunting for an old style manual card catalog, and we aren’t recommending people live without refrigeration. We do however recognize fraudulent money and spurious schemes when they appear. Congressman Patman later turned and supported the Silver Users Association.

    • http://www.thedailybell.com/ The Daily Bell

      Wow.

  • Benjamin Titshaw

    I give myself one big pat on the back for not buying in on this techno fad.

  • ghendric

    Bitcoin is just an electronic version of fiat money… what happens when the computers all stop?? big badaboom….

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