Bitcoin is Booming…and it’s Scaring Central Bankers

Bitcoin.  Controversial.  Game changing.  Complicated yet simple.  While most of my non fiat money is in precious metals, there’s a lot I love about Bitcoin.  The dramatic rise and subsequent crash that Bitcoin experienced in 2011 occurred well before I possessed my first unit of this crypto-currency.  Since then, it has recovered dramatically and at $19.65 last check is up almost 4x since the end of 2011.

Bloomberg published an article on Bitcoin a few days ago titled: Bitcoin’s Gains May Fuel Central Bank Concerns: Chart of the Day.  Here are a few excerpts:

An increase in the value of bitcoin, the world’s largest online currency, may fuel concerns that virtual money could undermine the role of central banks.

The CHART OF THE DAY shows that bitcoin has more than doubled in the past 12 months, strengthening to $16.37 from $5.88, according to data from Mt. Gox, the world’s largest bitcoin exchange. The money, issued by a decentralized network of computers, has recovered after falling to $2.14 in November 2011 from a high of $29.58 five months earlier.

Bitpay Inc., a bitcoin payment processing company that recently raised $510,000 in an investment round, this month announced that the number of companies using its services has increased almost 50 percent to more than 2,000 since November, when blog management firm WordPress.com said it would accept the digital currency.

I think the most beneficial reform we could possibly make to the global monetary and financial system would be the elimination of Central Bank monopoly money (pun intended).  The global economy would flourish if we moved to a system of competitive currencies.  Gold, silver, Bitcoin, even Federal Reserve notes would compete on equal grounds.  A free market for all, a monopoly for none.

My website supports Bitcoin and we only accept Bitcoin donations.  No fiat.  We recently added a section to the Donate via Bitcoin link that explains exactly what a Bitcoin is. If you support what I am doing and want to learn about using Bitcoin, this link is a great avenue for you.

In addition, here is another article I wrote on the topic. Bitcoin: A Way to Fight Back Against the Financial Terrorists?

In Liberty,
Mike

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2 Comments

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  1. Bitcoin is still a completely abstract, un-trusted concept for 99.9% of the population that even knows about it but it’s remarkable to have seen the demand lately nonetheless.

    I wonder how much money has been made simply trading, never mind being used as currency. It’s still such a puny market.

    There are some pretty sharp market savvy people where I work and they think it’s a scam that will be eventually be made illegal and shut down.

    Not me.

    • If the demand keeps growing this fast, it is very likely that it will be made illegal. But that isn’t going to stop it permanently. It’s decentralized and it’s easy to hide your wallet anywhere. If one country bans it, you can still use it in other countries.

      Many countries around the world block twitter, youtube and other websites against free speech, but people will find a way around it. U.S. will be able to make it harder to use Bitcoin, but impossible to ban it.

      Long term, unless cryptography is broken, Bitcoin will end up being the new world-currency.

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