H/t reader squodgy:
“Do we really think the Bankster elite will let Digital Currency in general & Bitcoin in particular, get out of their clutches indefinitely?
They’ve spent the last five years scheming, and now they have the answer….compliance to an approved standard code.
That can only lead to registration and the eventual demise of the ‘freedom & secrecy”.”
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Peter Schiff on CNBC 2/27/2017
I’ve said many times that, in my opinion, only PHYSICAL gold and silver are real and everything else will turn out to be an illusion, when the financial collapse will happen.
I’ve stated about Bitcoin, that (in my opinion) all those virtual Bitcoins will dissolve into thin air …. ‘aaaand they are gone‘, when the system (and the internet) will go down .
And good luck with those worthless gold ETFs, that will turn out to be backed by nothing.
See my commentary down below.
“Capital flight” takes on a bitterly ironic meaning.
The People’s Bank of China announced on Wednesday that it is probing the major bitcoin exchanges in Beijing and Shanghai – BTCC, Huobi, and OKCoin – for a list of violations, including market manipulation, money laundering, and unauthorized financing.
This is part of the PBOC’s efforts to crack down on capital flight, a major escalation from last week, when Chinese officials warned investors – if you can call them “investors” – to be careful with bitcoin. That warning came at the peak of the spike and tipped the whole thing over. Continue reading »
H/t reader kevin a:
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I am aware that bitcoin has been starting to rise again during the last several months.
The Chinese needed to find ways to get their “righteously” earned money out of the country.
However, I still would not want to be invested into a virtual currency when the system is collapsing.
I also do not want to hold stocks and certainly not bonds.
Additionally, I believe that only physical gold and silver are real and everything else will turn out to be an illusion.
And no, I would not want to store gold in Singapore, Switzerland, etc.
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The first time the ECB officially warned about the dangers of virtual currencies in general, and in particular, bitcoin – what was then a mostly unknown currency trading in the single digits (in USD terms) – was in November 2012 when in a report called “Virtual Currency Schemes” it warned that “in an extreme case, virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. Central banks would need to look at their existing tools to deal with this risk (for instance, trying to impose minimum reserve requirements on virtual currency schemes).”
Ironically, since then the ECB has moved significantly down the narrative of currency substitution, and in fact, following a recent push to eliminate paper currency (now that the €500 bill is no longer produced) the central bank has been urging for a shift away from real, paper money and into electronic variants.
However, overnight in a surprising reminder how the European central bank feels about bitcoin and other virtual money, the ECB urged EU lawmakers to tighten proposed new rules on digital currencies such as bitcoin, fearing they might one day weaken its own control over money supply in the euro zone. Continue reading »
It was only a matter of time.
In the wake of multiple terror attacks, the European Commission is moving towards creating a mandatory, centralized database of Bitcoin ownership.
Of course, their official reason is that Bitcoin is being used to finance terrorism.
So for everyone’s safety and security they need even more authority to spy on people’s finances. Continue reading »
Bitcoin prices are crashing on extremely heavy volume – down over 30% in the last 2 days – after Hong Kong-bassed Bitcoin exchange Bitfinex halted all trading after it discovered a security breach. As CryptoCoinsNews reports, the theft of 119,756 bitcoins has now been conclusively confirmed which makes it the largest theft in bitcoin’s space since MT Gox.
Representatives from the exchange told CoinDesk engineers were seeking to uncover issues at press time, though the company had confirmed roughly 120,000 BTC (more than $60m) has been stolen via social media.
One month ago, Fred Ehrsam, co-founder of Coinbase in a sweeping, 2,500-word blog post, took aim at what he called a “stagnant” bitcoin community that he characterized as being outperformed by innovators working on the Ethereum network. In the post, Ehrsam sought to position Ethereum as a possible competitor to bitcoin, indicating his belief that the competing protocol could “blow past bitcoin entirely” (perhaps he was merely peeved at the lack of commission fees Coinbase was generating). In his post, Eshram said: “There is nothing that bitcoin can do which Ethereum can’t. While Ethereum is less battle tested, it is moving faster, has better leadership and has more developer mindshare. First mover advantage is challenging to overcome, but at current pace, it’s conceivable.” Continue reading »
I’ve said before that I am not a friend of bitcoin.
I do not recommend bitcoin, because it is a virtual currency and once the system goes down all those bitcoins may just go “puff” and disappear in the ether, unlike physical gold and silver.
I also find it kind of suspicious that Bilderberg members are promoting it and that the alternative media is going so (positively) hysterical about it.
However, I may be proven to be completely wrong.
Paul Vernon, also known as Big Vern, is the founder of Cryptsy—the international cyber currency company (bitcoins). More than a year ago, Cryptsy was hacked by the developer of Lucky7Coin. During this time, the company was recovering it’s respect and reputation i.e. paying back money to user’s wallet.
How did the hacker (developer of Lucky7Coin) manage to access Cryptsy and steal bitcoins? The hacker injected Trojan malware into Cryptsy, which helps hackers gain access to the confidential data, allowing the hacker to grab the cyber currencies i.e. bitcoins. Continue reading »
H/t reader squodgy:
“Bitcoin Terror DISINFORMATION BRAINWASHING”
Wired has allegedly found elusive Bitcoin creator “Satoshi Nakamoto” in Australia…and less than 24 hours later he’s being raided by the Australian Federal Police. Sadly, given the attempts by the MSM and governments around the world to link the P2P economy to terror, mayhem and criminality, this is hardly surprising. Join me in today’s thought for the day as we explore the demonisation of P2P and why the powers that shouldn’t be are afraid of freedom…terrible freedom!
In the past we have explained why when it comes to circumventing capital controls, primarily in the context of China, there are few as simple and as efficient alternatives to Bitcoin – contrary to what Bernanke may think, gold is concentrated money (and in India it now pays interest) but when it comes to transferring it across borders, it tends to be rather problematic. And now Europe appears to have figured this out, and as Reuters reports, European Union countries are preparing to crackdown on virtual currencies such as bitcoin, and anonymous payments made online and via pre-paid cards “in a bid to tackle terrorism financing after the Paris attacks, acording to a draft document.” Continue reading »
Since China devalued the Yuan and surprised the world’s carry traders (and central planners) by stirring up FX volatility, the demand for ‘paper’ gold has begun converging to the demand for physical precious metals. Gold prices are now up over $100 since August 10th, but it is another (easier to ‘transport’) alternative currency that has soared. Bitcoin has spike post-China-devaluation(since dipping on ‘governance’ concerns), accelerating from under $200 to almost $300 today, and up 25% since our September 2 explanation why China’s capital account crackdown is “great news” for bitcoin.
The demand for alternatives to fiat currencies appears to be soaring:
However, the last week or two suggest, perhaps more importantly, that China easing (and outflows implict from further devaluation) now appears to go straight to Bitcoin.
As Overstock’s Chairman noted previously: gold is great, but tough to transport; thus, forcing Chinese into Bitcoin as we previously explained:
When the system will collapse all those bitcoins will be – in my opinion – worthless.
Only physical gold and silver will protect your financial assets in the future.
Bitcoin has recovered all the losses from the volatility surrounding China’s currency devaluation and Black Monday equity weakness as implicit capital controls drive the Chinese into alternative currencies (as we warned would happen). However, the last few days have seen the cryptocurrency surge to $280 – the highest in 12 weeks – as The EU’s top court ruled bitcoin and other virtual currencies can be exchanged tax-free, putting them on a more equal footing with traditional cash.
– This is Sparta – 1,000 Bitcoin ATMs are Coming to Greece (Liberty Blitzkrieg, Aug 18, 2015):
I simply cannot stress enough how important Greece is to freedom, liberty and civilization across the globe. Greece is not a one-off, or merely a small nation in big trouble that holds little relevance for the rest of us. Greece is everything.
What is happening to Greece follows the exact same game plan of what will eventually happen to every other supposedly sovereign nation. First there is an explosion of debt. Then a crisis. Then a bailout. Then creditor imposed hardship is forced upon the average population, in conjunction with unlimited bailouts for the bankers and other oligarch criminals. Finally, when a public which mistakenly believes it is living in a democracy exercises its right to national sovereignty, the sad truth is exposed. They are not a people living under a free political system. Continue reading »
– Bitcoin Spikes As Greeks Follow Cyprus “Template” (ZeroHedge, June 16, 2015):
In March/April 2013, Bitcoin prices started to soar as Dijsselbloem’s “template” applied to Cyprus prompted many to rethink money entirely. As the reality of a possible Grexit looms and Capital Controls are denied (just as they were in Cyprus), so Bitcoin prices are once again surging (up 10% in the last few days) as non-fiat currency once again becomes bid.
– SkyNet Is Almost Sentient: HFTs To Start Trading Bitcoin (ZeroHedge, April 6, 2015):
As noted earlier, with equities now a barren wasteland of volume (and liquidity), the last remaining HFT master (of whale order frontrunning) has been forced to go to those asset classes where organic flow is still abundant such as FX, courtesy of central banks engaged in global currency wars. However, HFTs realize it is only a matter of time before FX order flow also dries up as central banks take their trade away from public venues (and dark pools) and as such are always looking for new, untapped markets. One place where they are about to land according to the WSJ, with hilarious consequences sure to follow, will be the one place that HFTs should have felt at home from the very beginning: bitcoin.
– Federal Agents Investigating Bitcoin Money Laundering Extorted, Stole Over $1 Million In Bitcoin (ZeroHedge, March 30, 2015):
This is one of those sad times when The Onion realizes it has badly, and permanently, missed its IPO window.
Just released from the Department of Justice
Former Federal Agents Charged With Bitcoin Money Laundering and Wire Fraud Continue reading »
– Bitcoin Scammers Run Off With $12 Million: “Going to The Caribbean… Hope You Guys Understand” (The Daily Sheeple, March 18, 2015):
For the casual observer the underground online marketplace, often referred to as the DarkNet, seems to resemble the lawlessness of the Wild West. Over the last several years millions of dollars worth of digital crypto-currencies have been stolen, oftentimes by the very operators of the web sites tasked with managing the online digital “hot” wallets of its users. (A “cold” wallet is used to store crypto-addresses on your own Flash drive or can be written down on a piece of paper).
The most recent example comes to us from the “Evolution” Darknet, which according to a report from Crytpo Coins News shut down their web server and ran off with $12 million in user bitcoins: Continue reading »
– RED ALERT – IBM Moves to Create a Centralized, Central Bank Controlled Blockchain for Currency Control (Liberty Blitzkrieg, March 13, 2015):
International Business Machines Corp is considering adopting the underlying technology behind bitcoin, known as the “blockchain,” to create a digital cash and payment system for major currencies, according to a person familiar with the matter.Unlike bitcoin, where the network is decentralized and there is no overseer, the proposed digital currency system would be controlled by central banks.
– From the Reuters article: IBM Looking at Adopting Bitcoin Technology for Major Currencies
Many activists and thinkers in the anti-status quo world were understandably very suspicious of Bitcoin when it first entered mainstream consciousness during its run-up from $10 to $260 in spring 2013. I myself had heard of Bitcoin years before I publicly expressed my interest and support of the technology. With no tech background, I was immediately overwhelmed with the concept, and so I initially dismissed it and forgot about it. It was only in 2012, that I started asking questions of tech experts who I had become friends with it about it in order to calm my concerns. Considering these people have similar political leanings and are even more paranoid than I am about the corporate-gulag state, I felt somewhat reassured. Then, when I recognized the powerful political implications of the technology, I wrote my first public thoughts on it. The post was titled, Bitcoin: A Way to Fight Back Against the Financial Terrorists?
Here’s a key excerpt from the post, and what really got me interested in Bitcoin: Continue reading »