Wednesday, February 26, 2014

Hilarious thought...

Thought: Most of the people who just lost their savings in the crash of the biggest BitCoin exchange on the planet are 100% confident that they know how to run the economy better than the officials doing it.

(Some background) So, Bitcoin, which if you want to know can be learned about here, has been a thing for a few years.

It has some rather innovative solutions to an ongoing problem - namely that all online commerce requires putting funds or credit in an account somewhere (Paypal, Visa, etc..) and then providing that information to a vendor who charges a proper amount to that account based on the information provided. This creates the problem of identity theft, since the data with account numbers, codes, etc... is stored somewhere and can be stolen.

BitCoin was about creating a system by which the data itself transmitted was the value, and where the transmission of the data transferred ownership from one party to another. Utilizing designed scarcity, cryptography, Peer-to-Peer networking and at least four other economic and technical buzzwords it created a system that accomplished this to some degree.

Some of us noted that the first adopters of BitCoin were, for some reason, Libertarians... in fact the Libertarian Party is the ONLY party which has created a mechanism to take BitCoin donations on it's website. Noted writers have been observing the relationship between Libertarian ideals and BitCoin enthusiasts. The most recognizable names involved in BitCoin to most people were the Winklevoss twins of Facebook fame. BitCoin's primary use as a currency (and not as a speculative store of value) has been buying drugs over the Internet. from a guy operating from a pseudonym taken from an 80s Movie.

Truly, an icon of trust on many levels

Regardless of the ideas and technical background behind BitCoin, many of us who were intrigued by the notion looked at the nest of criminality and gullibility massed into this scheme and knew that many, many, people were going to be manipulated and taken to the cleaners to benefit a VERY few winners who manipulated the system. The investors with shadowy histories, the built in secrecy and lack of accountability, the fact that it was popular with Libertarians - who happen to be the most gullible group of human beings that have ever lived. People have just - in a day - lost anywhere for a few dollars to their life savings - and most of them talking about it online are (somehow) not learning anything about markets, security, or legal frameworks and accountability from any of this.

And these are, for the most part, the same people who will tell you the banks that haven't crashed in nearly a century are "a scam" or that treasury bills that have never failed to be paid out in the entire history of the United States are "worthless" and that they have better ideas than the staff of the Federal Reserve or the U.S. Treasury.

Hey, who could have guessed... just a couple months ago Ron Paul was speaking praises of Bitcoin, but yesterday, after the crash he gave an interview on Fox News where he defended its existence but casually mentioned that he never put a penny of his own money in the stuff. Ron Paul is the Con Artist in this game, not the mark.

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