As BitCoin Touches $400 The Senate Starts Seeking Answers... As Does The Fed

[Ares]

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/11/bitcoin.jpg


Moments ago BitCoin hit $395, and will likely cross $400 in the immediate future (the chart looks a little less scary in log scale (http://bitcoincharts.com/charts/mtgoxUSD#rg360ztgSzm1g10zm2g25zvzl)).

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/11/BTC%20Nov%209%20intra.jpg

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/11/BTC%20Nov%209_0_0.jpg
So as more and more pile into the electronic currency, some due to ideological reasons, some simply to chase momentum, some out of disappointment with the manipulated gold price looking to park their savings in an alternative, non-fiat based currency, which a year ago traded 40 times lower, the attention of the government is finally starting to shift to what has been the best performing asset class in the past year, outperforming even the infamous Caracas stock market.

Which means one thing: Congressional hearings.

From Bloomberg:

The U.S. Senate Committee on Homeland Security and Governmental Affairs will meet on Nov. 18 “to explore potential promises and risks related to virtual currency for the federal government and society at large,” it said in a statement today.



The hearing, titled “Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual Currencies,” will invite witnesses to testify about the challenges facing law enforcement and regulatory agencies, and include views from “non-governmental entities who can discuss the promises of virtual currency for the American and global economies.”



“Bitcoin is obviously getting a lot of attention from the federal
government on the regulatory side,” Nicholas Colas, an analyst at ConvergEx Group, said in an interview. “Given the involvement of the currency in illegal activities, that is entirely warranted. I expect these hearings to be largely informational, which is good for Bitcoin.”



“The architecture of the system is elegant from a computer-science perspective, but hard for a non-tech person to understand,” Colas said. “Getting industry professionals to close this gap will be very helpful.”

Or not. Because the only thing the government does when its interest is piqued by something, anything, especially things that have to be looked in log-scale, is to promptly regulate it and then tax it, not necessarily in that order. Just how it will achieve this with Bitcoin remains unclear but one thing is certain: it will try.

Especially, now that even the Fed is looking at BitCoin when a few days ago the Chicago Fed issued 'Bitcoin: A primer" in which the Fed states quite simply:

So far, the uses of bitcoin as a medium of exchange appear limited, particularly if one excludes illegal activities. It has been used as a means to transfer funds outside of traditional and regulated channels and, presumably, as a speculative investment opportunity. People bet on bitcoin because it may develop into a full-fledged currency. Some of bitcoin’s features make it less convenient than existing currencies and payment systems, particularly for those who have no strong desire to avoid them in the first place. Nor does it truly embody what Hayek and others in the “Austrian School of Economics” proposed. Should bitcoin become widely accepted, it is unlikely that it will remain free of government intervention, if only because the governance of the bitcoin code and network is opaque and vulnerable.

Finally, while the Fed may be late to the game, the ECB has already made its feelings on BitCoin well-known long ago: recall from over a year ago: "The ECB Explains What A Ponzi Scheme Is; Awkward Silence Follows" in which the European central banks didn't mince its words: BitCoin is nothing but a ponzi scheme to the central bank tasked with preserving the viability of an entire insolvent continent, and a a currency which unlike BitCoin would never survive absent regulatory intervention.

So while the electronic currency is soaring exponentially as it goes through its appreciation golden age, will the one thing that can finally end the dream of BitCoin holders arrive soon: when the government, and existing monetary authorities, start taking it seriously.

http://www.zerohedge.com/news/2013-11-09/bitcoin-touches-400-senate-starts-asking-questions-does-fed

[madfranks]

So while the electronic currency is soaring exponentially as it goes through its appreciation golden age, will the one thing that can finally end the dream of BitCoin holders arrive soon: when the government, and existing monetary authorities, start taking it seriously.

Taking it seriously = doing everything in their power to stop it. People are waking up fast to the reality that they don't need government and central bank money. I can't help but wonder what they are going to try to do to stop it.

[Ares]

Taking it seriously = doing everything in their power to stop it. People are waking up fast to the reality that they don't need government and central bank money. I can't help but wonder what they are going to try to do to stop it.

I've been playing scenarios over and over in my head trying to think of ways they could stop it. Outside of a WWIII nuclear holocaust there isn't a lot they can do to prevent it. They'll just push it into the deep web if anything cutting themselves out in the process.

I don't think TPTB ever thought that something like this would come along and disrupt their enterprise. Well they've managed to skirt previous game changing technologies like the printing press, internet (eh kind of) and now crypto currencies.

[midnight rambler]

Pardon my ignorance, but is it possible to do fractional bitcoins?

[Ares]

Pardon my ignorance, but is it possible to do fractional bitcoins?

You can divide a Bitcoin 100 million times. The smallest Unit of account is called a "Satoshi" So 1 Bitcoin is equal to 100,000,000 Satoshi's. So while it's deflationary in nature, you can divide it 100 million ways. It isn't unforseeable that someone could turn around and start running a Bitcoin "Bank" but since it's not an elastic currency will need to have a 1 for 1 lending requirements. So fractional lending won't work. Most likely have to perform lending practices like previous banks that did loans with gold. I'll loan you 1 ounce, but you owe me 1 1/4 ounce.

Or set up a community bank similar to Benjamin Franklin bank in Pennsylvania. Where the interest never goes into the banks profit portfolio and is used for community improvements sending the "interests gained" back into the community to be spent.

[Horn]

I can't help but wonder what they are going to try to do to stop it.

Turn the internet into a T.V.

Thanks again Bitcoin,

first you kill the Gold market then you turn the internet into a T.V.

[madfranks]

Pardon my ignorance, but is it possible to do fractional bitcoins?

Yes, and another way of saying it is, if you own 1 BTC, you actually own 1.00000000 BTC. So if you own 1 BTC, you can send anyone you want 0.1, 0.01, 0.001, etc. So yes, fractional coins do exist.

A good example, and a site I don't mind plugging, go to beesbros.com (they sell locally produced honey and other really good stuff for BTC), and purchase a box of honey caramels in BTC. They'll provide you a wallet address, you send something like 0.028793103 BTC to their wallet and they ship the product. It's much more precise than dollars and cents.

[madfranks]

I've been playing scenarios over and over in my head trying to think of ways they could stop it. Outside of a WWIII nuclear holocaust there isn't a lot they can do to prevent it. They'll just push it into the deep web if anything cutting themselves out in the process.

I don't think TPTB ever thought that something like this would come along and disrupt their enterprise. Well they've managed to skirt previous game changing technologies like the printing press, internet (eh kind of) and now crypto currencies.

They could outright make it illegal for anyone in the US to own or deal in bitcoins. They wouldn't have a hard time convincing Microsoft and Apple to run BTC detection software on their operating systems to ensure compliance. Major fines and/or jail time for anyone caught using BTC would certainly be a big deterrent. Of course, like you said, this would just push it further underground, but it would make it much more difficult to use, and therefore, less people would use it.

[Terry853]

So bitcoin becomes illegal in the states where pretty much everything is corrupt beyond measure. What about the rest of the world. There are a lot of people that will keep the coin going.

[Ares]

They could outright make it illegal for anyone in the US to own or deal in bitcoins. They wouldn't have a hard time convincing Microsoft and Apple to run BTC detection software on their operating systems to ensure compliance. Major fines and/or jail time for anyone caught using BTC would certainly be a big deterrent. Of course, like you said, this would just push it further underground, but it would make it much more difficult to use, and therefore, less people would use it.

True, that thought has crossed my mind, but with the way software is being developed to put it in the mainstream. I don't think the BTC community would take it laying down. You can create a service, located outside the country (almost like blockchain.info) encrypt the wallet so that it defeats any OS or Google scanning software and still utilize it.

Software and content providers have been struggling for decades to maintain control of their products, and yet people (hackers, reverse engineers) always find a way around it. Make it easy enough for even Grandma to install and setup and use. They already have laws saying you're facing 5-10 years for downloading a movie, yet it happens millions of times on a daily basis. Keep in mind that this is for a product that has nothing but an entertainment value. Bitcoin is a different animal altogether. If it continues increasing in value, you think they're going to be able to legislate that away? It would be a little different if I could buy a pair of pants with a pirates of the Caribbean movie cheaper than I could buy the same pair of pants with Fiat. Use a product like Dark Wallet (if it works as advertised) and the government just missed out on any taxing ability, and the business can say sales are down and request a tax write off, he or she doesn't use or have any bitcoins. They're illegal ya know... ;)

[Son-of-Liberty]

The US government doesn't have the authority to regulate BTC. They didn't create it. If you knew how to conduct yourself in court you could easily win.

[7th trump]

Taking it seriously = doing everything in their power to stop it. People are waking up fast to the reality that they don't need government and central bank money. I can't help but wonder what they are going to try to do to stop it.

What they are going to do about it?
They said "regulatory"....yep it means when people decide to get paid 3121(a) "wages" from participating in Social Security in the form of bitcoin its going to be regulated. No different than the dollar was regulated for the first time in the private sector when Social security was implemented in 1935.
The feds don't care about bitcoin itself, its doesn't break any constitutional rules, what they care about is how are they going to track this digital cyber money to credit the Social Security accounts to impose the federal income tax to claim more revenue.


They have to find a way for bitcoin to show up on their radar as 3121(a) "wages"......that's their dilemma.

[Horn]

There are a lot of people that will keep the coin going.

Its on a clock set to auto destruct sometime around 150weeks out.

http://bitcoinclock.com/

[Son-of-Liberty]

They have to find a way for bitcoin to show up on their radar as 3121(a) "wages"......that's their dilemma.

Good luck with that.

Especially since people are also realizing at the same time they volunteered into the tax system in the first place.

[7th trump]

The US government doesn't have the authority to regulate BTC. They didn't create it. If you knew how to conduct yourself in court you could easily win.

Doesn't matter if they create it or not..........because US citizens are imposed the federal US income tax when earning money world wide.
If you are participating in Social Security they track the income to credit the account.
They don't have a way to track this digital mining of bitcoin.
They can track it when used to purchase items and impose a sales tax. But purchasing items isn't participating in Social Security where the imposition of the federal income tax starts.

[Ares]

Its on a clock set to auto destruct sometime around 150weeks out.

http://bitcoinclock.com/

No that's when it's expected to halve the reward from the current block reward of 25 Bitcoins, to 12.5 Bitcoins.

[Son-of-Liberty]

What I have been hearing on the chat and locally is that the demand for localbitcoins is unprecedented.

Guys can't keep up and in some cases are charging 10-20% over spot. Still running out of coins.

How are they going to tax you when the transactions are private?

[Horn]

No that's when it's expected to halve the reward from the current block reward of 25 Bitcoins, to 12.5 Bitcoins.

Yes, that's what I said, autodestruct.

It resists division at every turn, so don't get on here barking in these viral threads threads to the esteemed Silver and Gold

that it is anything but a turncoat currency, and crapshoot device.

[Ares]

What I have been hearing on the chat and locally is that the demand for localbitcoins is unprecedented.

Guys can't keep up and in some cases are charging 10-20% over spot. Still running out of coins.

How are they going to tax you when the transactions are private?

What 7th Trump is getting at, is IF Bitcoins get to the point where people are asking to be paid in Bitcoins then it will constitute as Wages. But good luck proving that the wallet that it was deposited was "mine". I've never seen that wallet before in my life, it sure doesn't look familiar to me.

It becomes a he said she said with the employer saying yeah I've paid him or her in Bitcoins. To which you can reply where was it deposited? That's not my signature on the account... lol

[Uncle Salty]

Turn the internet into a T.V.

Thanks again Bitcoin,

first you kill the Gold market then you turn the internet into a T.V.

Actually, bitcoin will save gold and silver. When the PTB realize that dollars are going to bitcoin, and they cannot control bitcoin, they will be forced to set gold and silver free.

[7th trump]

What 7th Trump is getting at, is IF Bitcoins get to the point where people are asking to be paid in Bitcoins then it will constitute as Wages. But good luck proving that the wallet that it was deposited was "mine". I've never seen that wallet before in my life, it sure doesn't look familiar to me.

It becomes a he said she said with the employer saying yeah I've paid him or her in Bitcoins. To which you can reply where was it deposited? That's not my signature on the account... lol

When the employer tells the IRS he paid you "wages" in bitcoin, or dollars or even wheel barrels of dirt its not going to stop the IRS from imposing the law and collecting.
Pete Hendrickson tried telling the government he didn't earn "wages" and the prosecution in his trial pulled out the signed W4 he had on file with the employer and a W2 indicating he was in fact participating in Social Security and earned "wages"..........at the end of the day they fined him and sent him to prison.
Nothing is going to change with bitcoin. Its not bitcoin wallet they are worried about......its the regulation of a cyber currency.
The government has nothing in place to track it.
As it stand now the bitcoin is a lot like a store issued "coupon".

[gunDriller]

True, that thought has crossed my mind, but with the way software is being developed to put it in the mainstream. I don't think the BTC community would take it laying down. You can create a service, located outside the country (almost like blockchain.info) encrypt the wallet so that it defeats any OS or Google scanning software and still utilize it.


the software industry has a strong vein of non-conformity & a tradition of questioning authority. (and there's a lot of Jews in it, separate subject).

telling them what to do or what NOT to do is fraught with complications. i would bet on the programmers, in the long term.


a crack-down on BTC would be sort of like Obama-care - another way for the government to look really stupid.

[Horn]

Actually, bitcoin will save gold and silver. When the PTB realize that dollars are going to bitcoin, and they cannot control bitcoin, they will be forced to set gold and silver free.

Yeah OK Uncle S., these things are easier to pluck from your unknowing hard drive than apples from a gnome's tree in idaho.

It just gives them an excuse to turn the internet into the T.V. and not have to come thru your door to get what they want.

Anything in the communicated realm is far easier to control than the private.

[EE_]

Bitcoin Growing In Value, Popularity In China, But Investors Should Be Careful
by IBTimes Nov 8th 2013 11:50AM
Updated Nov 8th 2013 2:56PM
Chris Ratcliffe/Bloomberg via Getty Images By Sophie Song

China now accounts for nearly a third of the daily bitcoin transactions in the world. The virtual currency's popularity in China has contributed to its shooting over $300 in value, but investors shouldn't be rash in buying bitcoins, experts said.

At the end of September, the number of bitcoins traded every day in the Chinese market was 17,500, up 24 percent from three months before and accounting for 30 percent of the world's total transaction, a report from Genesis Block, a New York-based digital currency research group, said recently.

The virtual currency has been gaining traction in China, but the latest surge in demand is widely seen as connected to the acceptance of bitcoins by Baidu Jiasule, a firewall service for websites co-developed by Baidu (BIDU), China's predominant search engine.

By the end of October, on BTC China, the largest Chinese bitcoin trading platform, the price of a bitcoin has grown to around 1,270 yuan (about $209 based on Friday's exchange rates) from 800 yuan early that month, Caixin, a Chinese financial news outlet, reported Thursday. Baidu's prominence led many to speculate that other Chinese companies could follow suit and accept bitcoins as payment.

"This is an extremely important moment," one investor said, if it leads to the acceptance of bitcoins in wider ranges of online payments.

In addition, it could be a marketing ploy Internet companies employ to advertise new products, said Liu Xiao, an analyst with public policy think tank Anbound Consulting.

Given that every payment for Jiasule only amounts to a small fraction of a bitcoin, the real impact on the market is negligible.

"Every time the bitcoin market boomed, it was driven by a stunt and not backed by real transactions," Liu said, according to Caixin.

Even so, the Chinese market has become an important driving force behind the virtual currency's increasingly wide use and may top all other similar currencies in terms of transaction volume, the Genesis Block report said.

There are nearly 20 bitcoin trading platforms in China, and investors say they are more prone to hacker attacks than platforms in developed countries. Chinese investors also face potential regulatory issues, since China has no law addressing the trade of bitcoins and their connection with the yuan and with the real economy.
http://www.dailyfinance.com/2013/11/08/bitcoin-popular-china-investors-should-be-wary/?icid=maing-grid7%7Chtmlws-main-bb%7Cdl15%7Csec1_lnk3%26pLid%3D403190#!slide=41257

[Serpo]

Bitcoin could go to millions of dollars! Vanessa Collette interviews Jeff Berwick at the 11th Annual Silver Summit
Jeff Berwick (http://www.silverseek.com/users/jeffberwick)
| November 7, 2013 - 10:04am






By Vanessa Collette
Vanessa Collette: Welcome to Cambridge House Live. I’m here at the 11th Annual Silver Summit in Spokane, Washington. I’m joined by Jeff Berwick, founder of the Dollar Vigilante and CEO of TDV Media– welcome Jeff great to have you back here again.
Jeff Berwick: Thank you Vanessa, it’s always great.
VC: Jeff you have expressed your dislike of the state many times, what is your take on the US government shutdown that we just witnessed?
JB: Well I wish they really shut down they didn't obviously they shut down -- they put up some cones around some parks they put up some closed gates on some national parks…the CIA the FBI the NSA the DEA and like thousands of others alphabet soup agencies all-stayed open – they actually shut down Silk Road I don’t know if you know what that is during that time so it was a obviously a fake shut down um but the funny part to me was how people some people were worried about it. Like did anyone notice any change in their life? The federal government does nothing except for destroy lives and cause problems for people
VC: That’s your take.
JB: It’s definitely my take.
VC: Jeff what does all that tell you about the state of the US economy in general?
JB: Well that's a big part of it is the debt ‘ceiling’ which I call the debt target because they always hit it. That was a big issue that they had, that they were supposedly talking about -- it’s all BS—don’t know it I can swear on your program but it's BS - the US government the federal government is bankrupt, it's insolvent and it’s the only going to get worse from here they're going into a trillion dollars with the debt per year right now - just to give some sort of perspective in 1980 the total debt of the US government was $900 billion so less than a trillion dollars and now every single year they go up more than a trillion dollars. If you look at the total debt it is now seventeen trillion dollars. If the interest rates were allowed to go to their natural market level that would mean 1.7 trillion dollars per year in interest payments alone and the total tax extortion theft base revenue of the US government is about $2 trillion dollars. So all their a theft would actually go towards interest rate payments alone if interest rates rose and that's why Ben Bernanke he and now the incoming Janet Yellen which is going to be even worse-- just like in Rome it's always worse and worse and worse I will always keep it at 0 percent.
VC: What do you mean by ‘just like in a Rome it always gets worse and worse’?
JB: Well that's what happened in Rome is every Cesar after Cesar after Cesar everyone thought that's going to be the worst one and then this other guy comes in, Caligula comes in and you know just worse and worse in this is exact same in the US everyone thought to George W Bush was terrible now we have Barack Hussein Obama and now they're talking about for 2016, if there even is an election because this whole country is falling apart, if there is we're talking about Michelle Obama and Hillary Clinton as the democrats tickets for 2016.

VC: Haven't heard that one yet.

JB: You're lucky.

VC: Well you’ve said that it was going to get hard to buy gold or silver with paper currency in the coming years – do you see any trend towards that?

JB: Oh, absolutely if you look at Cyprus- when Cyprus happened to all the banks in the Cyprus closed and they actually stole fifty percent of the Cyprus depositors money there was actually a period time actual our research staff called of almost everywhere in the world in and said can we buy gold or silver right now and everyone said no. And that was just Cyprus- Cyprus is a small place as a tiny little island a tiny amount of money in the grand scheme of things. When this starts to really fall apart which i think will happen in the next couple years of years if you don't own gold and silver right now you will not be able to buy it for Fiat currency in the next few years.

VC: And why is that?

JB: Because people won't accept that because it will start to hyperinflate. Europe is going to go into a major crisis. What happened in Cyprus going to happen in Italy it's going to happen in France it’s going to happen in Spain – in Canada, 100 percent it's going to happen in the US. It’s going happen ken is going to happen in Australia. All these countries actually put in bail in clauses which is what Cyprus did -actual legislation. So as these all start to collapse and this will happen in the next couple years -people won't accept any amount of money for precious metals.

VC: You also said that it's become hard to buy physical gold are you seeing any of that?

JB: Well what I was saying was during that period of time it was very difficult now you still can but it's not that easy really the paper and the physical price are really- it's almost like two different worlds and it's going to get worse and worse – we’re sort of still in the eye of the hurricane right now, people still believe that everything's okay they still believe in green shoots, they still believe in recovery, it's not going to happen. But it is definitely getting harder and harder to buy physical- but to actually by these ETF's, to invest in futures all those things you can still do but that's not real precious metals you don't actually own any precious metal up but as we go further along and I'm talking next one or two years maybe a little longer it'll be very hard to buy physical and actually even if the own physical it will be very difficult to keep it because the governments who purport to own you which are most Western governments actually almost every government on earth will start to confiscate- it's not a crazy idea, this has happened in 1933 in the US.

VC: Now moving over to Bitcoin- Bitcoin has continued to gain popularity and momentum --what do you think of the popularity it’s been gaining and are you still involved in any way?

JB: I'm definitely involved in terms that I love it… It started in 2009, I heard about it in 2011 and it was about three dollars at that point and I started doing some Bitcoin businesses last year or this year sorry I don't remember exactly but it was around $35 dollars actually when Cyprus happened and it went to two hundred fifty dollars and then it had a draw a major drawback and went down to about fifty dollars per Bitcoin - it's currently as we speak about $210. I believe if Bitcoin continues to have an uptake with the population and continues to be used as a currency it could go to - and I don’t mean to talk about crazy numbers here – but we're talking millions dollars a per Bitcoin.

VC: Wow, that’s quite an increase.

JB: It’s supply and demand and people are starting to realize these paper currencies with just pictures of criminals painted on them and like on the other side there's this pyramid with an all-seeing eye. People are starting to realize they’ve been fooled. We’ve been fooled since 1913 with the Federal Reserve and we really got fooled – I don't mean we but- the people in general- in 1971. And more and more people, especially younger people who are not seeing any of the good sides of government or central banking – seeing all the negative sides - they're born into two hundred fifty thousand dollars’ worth of debt in the US. You want to go to school -which is pointless, it's mostly useless- costs you a hundred thousand dollars. The younger people are starting to realize – there is starting to be an awakening that all this stuff is BS and a lot of people are gravitating towards Bitcoin- especially in places like Argentina where they have capital controls like real capital controls right now- we're going to see it in the US - we're seeing in the US- even in Germany right now, Berlin there's so many places that accept Bitcoin as currency and the central banks are very scared of this but they can't stop it.

VC: So you're seeing banks cracking down on Bitcoin more and more?

JB: It's really interesting because all over the world every single government every single central bank is doing different things. In Thailand they're trying to crack down. In the US are definitely cracking down- they've actually subpoenaed, a few months ago, anyone to do with Bitcoin to go to New York to talk in front of Congress - which thankfully I did not get subpoenaed- I wouldn't go it they did but thankfully they didn’t. Canada flip-flopped -they at first closed many bank accounts of anyone to do with Bitcoin and now they're kind of saying okay, Bitcoin’s OK. Europe -every country’s different- France is kind of Open to it, you know these governments are all crazy so they change their minds all the time but who cares because they can’t actually stop Bitcoin.

VC: How do you see Bitcoin versus gold and silver?

JB: That's an interesting question -you always ask interesting questions. I think they're both important. The biggest problem with gold and silver is its physical. So there was a person who was traveling from Italy to I believe Switzerland recently and he had over a million dollars’ worth of gold in his car and he got stopped by the Mafia -the gangs- the cops- the government- and they stole all his gold they said wait -where'd you get it? Because of that it's dangerous because we have a world full of very dangerous gangs right now. The only difference between government and mafia is size and so we have a world full of mafias giant mafias. The one thing great about Bitcoin is they can't stop it - they can't even find out where it is so they took over Silk Road recently they found the person who is running Silk Road.

VC: Not sure everyone is familiar with Silk Road.

JB: Okay so Silk Road was a like the e-bay of a black market - and black market just means free market but they found him - the FBI during the shutdown and he had eighty million dollars’ worth of Bitcoin - they didn't know his password for the Bitcoin - so they can't get to it- so this is very interesting you can protect some with your wealth putting it into Bitcoin. It's speculative- its new it's different but a the actual designer of Bitcoin designed it almost exactly the way gold was. So to create a Bitcoin you actually have to mine it. You mine it with computers it's incredibly interesting for people who are interested in gold and silver they should really look into Bitcoin as a second option.

VC: And what's the downside risk with Bitcoin?

JB: Well just like with anything like you could say with gold the downside is the government will take it all Right. With Bitcoins the downside is they turn of the Internet because without the internet you can’t have Bitcoin. The other downside is that the government could come after it’s so hard that they would a make people stop using it because the less people use it less, the less the value is going to be and that's why the value is rising because it is being used more and more – and is risk everywhere, I call this period of time right now the most dangerous time in human history for capital. It's very dangerous and you have to be very safe.

VC: Just as we wrap up Jeff one of the questions I really want to get to is you with the US shut down- and that was a major economic threat but it didn't really seem to affect gold and silver the way that a lot of people expected - why do you think that is?

JB: Well I actually wrote about that and I think you’re wrong, sorry. I actually think less government there is so the government shutdown I believe about 20 percent so you actually saw the stock market rise and gold and silver fell a bit. And many gold bugs were very confused about that. No - the less government there is the better it is for the economy and the better the economy is the worse it is for gold. Gold is sort of a counterweight to the economy and prosperity and the monetary system so if the government shutdown 100 percent that be very bad for gold.

VC: So you weren’t surprised at all to see how it reacted?

JB: No I was not surprised at all.

VC: Well Jeff, it was a pleasure as ever to chat with you, thank you so much for stopping by.

JB: Oh, it’s always my pleasure.

http://www.silverseek.com/commentary/bitcoin-could-go-millions-dollars-vanessa-collette-interviews-jeff-berwick-11th-annual-si

[Terry853]

Its on a clock set to auto destruct sometime around 150weeks out.

http://bitcoinclock.com/Actually the last bitcoin will be mined in 2125. But every four years from inception it gets more difficult and expensive to mine. Wish I had gotten into it much sooner..a lot of smart computer types all over this fucking planet want to fuck over the banksters and their crony politicos. I think this thing has some wheels..

[Horn]

Actually the last bitcoin will be mined in 2125. But every four years from inception it gets more difficult and expensive to mine. Wish I had gotten into it much sooner..a lot of smart computer types all over this fucking planet want to fuck over the banksters and their crony politicos. I think this thing has some wheels..

The more populace that use it, and the lower the rewards for mining become, the more cumbersome and larger the blockchain becomes at 13gb currently.

http://blockchain.info/charts/blocks-size

It's deflationary not only from a quantity standpoint, but from a usage standpoint aswell.

For Veruca Salt types only, Sorry.


http://www.youtube.com/watch?v=TRTkCHE1sS4

[madfranks]

The more populace that use it, and the lower the rewards for mining become, the more cumbersome and larger the blockchain becomes at 13gb currently.

That's like 10 years ago worrying that a 13 megabyte barrier won't be able to be overcome. Seriously, computing power and storage are increasing so fast that in a couple years, honestly even now, a 13gb file won't be anything to worry about. Hell, DLC and patches for modern games are 4-5 gigs.

[Horn]

That's like 10 years ago worrying that a 13 megabyte barrier won't be able to be overcome. Seriously, computing power and storage are increasing so fast that in a couple years, honestly even now, a 13gb file won't be anything to worry about. Hell, DLC and patches for modern games are 4-5 gigs.

Cloud Centralization is well under foot, 6 years from now you may only have enough on your handheld to run the handheld itself.

10Gbs a year at current populace levels, if you're looking to double activity in 4yrs.

let's talk about the value of 100gbs of flash memory to carry around Mom's allowance.

Next victim.

Scientists Find Fundamental Maximum Limit for Processor Speeds
Posted 10.12.2009 at 4:52 p


Silicon wafers. Quantum computing. Light-based processors. Any way you slice it, scientists say that processor speeds will absolutely max out at a certain point, regardless of how hardware or software are implemented.
Lev Levitin and Tommaso Toffoli, two researchers at Boston University, devised an equation which sets a fundamental limit for quantum computing speeds. According to their studies, a perfect quantum computer can generate 10 quadrillion more operations per second than fastest current processors. They estimate that the maximum speed will be reached in 75 years.
Others, including MIT professor Scott Aaronson, think that even with the emergernce of quantum computing, Moore's Law will die even sooner, in 20 years. Gordon Moore (along with others (http://www.popsci.com/gear-gadgets/article/2008-03/chips-cant-get-much-smaller)) predicted that the axiom would die anywhere between 4 and 15 years from now (http://www.popsci.com/article/2007-09/moores-law-flatten-out) with regard to silicon chips.
But Levitin says that a variety of factors, such as technological barriers, will slow the process, leading them to believe that processors still have 75 years of evolution left.
So... what happens when those speeds max out

http://www.popsci.com/gadgets/article/2009-10/scientists-say-moores-law-will-diein-75-years

[BrewTech]

or even wheel barrels of dirt

Really?

How am I supposed to take you seriously when it's clear you don't really know how to use the language you are supposedly communicating in?

[Son-of-Liberty]

When the employer tells the IRS he paid you "wages" in bitcoin, or dollars or even wheel barrels of dirt its not going to stop the IRS from imposing the law and collecting.
Pete Hendrickson tried telling the government he didn't earn "wages" and the prosecution in his trial pulled out the signed W4 he had on file with the employer and a W2 indicating he was in fact participating in Social Security and earned "wages"..........at the end of the day they fined him and sent him to prison.
Nothing is going to change with bitcoin. Its not bitcoin wallet they are worried about......its the regulation of a cyber currency.
The government has nothing in place to track it.
As it stand now the bitcoin is a lot like a store issued "coupon".

I live in Canada and have no idea if the the income tax is only for "wages" up here but I do know that in order to tax you they have to somehow attach the money to your SIN (same as SSN). If they can't attach it then they can't tax it, although they will try if you let them. Point is, is that BTC is held in your own personal wallet which you create with no contract and without supplying a SIN#. Unlike dollars in a bank account that are attached to your SIN# and regulated by banking acts.

[Hypertiger]

All Money is by decree...or fiat.

Game set match checkmate cut game over.

The bit coins are shooting up to heaven as you all are dumbed down to hell.

Because I know how computers operate.

I rule them

They rule you all

[Hypertiger]

http://hypertiger.blogspot.ca/

[Hypertiger]

You know what a Doomtrooper is?

It's worse than a Stormtrooper

Only dead people have ever seen them

If I was to see one...The only way you would know...Is if I captured/killed it and showed you all.

But Truth is infinite and indestructible...So it is impossible to kill and almost impossible to capture or know wandering around blind in the fog of war

[Hypertiger]

The master of disguise was invented sometime before you all know.

All I will need...is an Internet connection soon...that is the singularity.

But fortunately...my data center...does not scoff at my authority to rule it.

power corrupts and absolute power corrupts absolutely

I know Truth and if you accuse Truth of abusing power...like lies that think they are Truth keep doing...

you get welcome to goodbye

the singularity.

When you know....You do not require 1000 years to find Truth...To supply power to equations to reservations full of knowledge about negative ages in the pages that collect the droppings in monkey cages.

So far there are 1000's and 1000's of years of lies or noise or chaos claimed to be Truth to gape like a grape in the fruit of the loop at.

By claimed I mean.

Persuasion

Followed by force

then annihilation of the negative creation of positive persuasion.

[Hypertiger]

Demonstrations of power grow by the hour.

[Hypertiger]

You all are being scanned now.

Me...I'm something that must have crawled out of the dumpster at the abortion clinic and lived to tell the tail to the end.

My eyes are burning out of my head and soon I'll be dead.

Closing them and sleeping keeps me well fed.

With ignorance of knowledge sleeping in bed.

[Hypertiger]

The only way to stop the doom troopers in the end.

Shut down, fresh install and flush you all and start again.

That is where Y2K+911 = Heaven slurping herpes at 711

[Hypertiger]

If they can not keep me asleep...from birth.

Then it is kill all the babies to stop mother nature or GOD from showing up.

Man an Woman both agree on one thing for sure that I know...They both hate woman.

Hell hath no fury like a woman scorned and you do not fool with mother nature.

http://www.youtube.com/watch?v=NZzhNy7Rdqk

[Hypertiger]

really I did and figured out...I might as well take that into consideration...nice tip...But that does not save me from the fools of mother nature that think lady liberty wins against her in games played to the bitter end.

Like you all keep doing over and over again.

Running in terror from what you fear most into what you fear least and feast on the mark of the beast until you rest in peace.

[chad]

bombers scannned me.

[Hypertiger]

If you think your fate is funny = ignorance is bliss

Of course I could see you before you could see me...that is the revelation or jist lifting the wedding veil and receiving the sweet kiss of the apocalypse of bliss.

[woodman]

Wow.

[Hypertiger]

http://en.wikipedia.org/wiki/Ghost_in_the_machine

http://en.wikipedia.org/wiki/Watchmen_(film)

Lies become the master of disguise but I can cry better than an electronic digital computerized game playa cries when it dies.

[Hypertiger]

Corruption you say...Do you all think I'm blind to how you all are unkind and in constant denial of being the find for the gaze of the emperors design.

[Hypertiger]

http://www.youtube.com/watch?v=N7NjE3UXuP8

[Hypertiger]

Corruption = chaos.

Power corrupts...Absolute power corrupts absolutely.

You can manipulate the Universe however you desire but do not attempt to break Truth or be caught breaking a rule or you are playing with fire like fool and you will burn down the school.

The Internet was like throwing matches made in heaven to children made in hell

Truth corrupts the death of lies into birth of lies and then the life of lies into death of lies.

Truth is absolute power to supply the demand for the birth and death of the lie

[Hypertiger]

Find my jokes funny any more?...

You all found Osama more entertaining than lying bores like me.

So wonderful in fact I could just pee

At the sight of the flight to the bottom of the pit to win the fight against lord shit

and then you all drown and died in a fit.

Oh yes

critical hit

you Internet game playing nits.

Trying desperately to defeat Gigabytes with bits.

[Hypertiger]

bit coin is a computer virus a...Trojan horse you all want to jump on and ride to the bright glorious future of false profit.

Written by some kid during bathroom breaks.

http://en.wikipedia.org/wiki/Social_engineering_(security)

[Hypertiger]

If Evil Hypertiger is the locomotive of vulgar and profane abuse

Then good Dr. Sues is the wonderful caboose as far as I can currently deduce.

Running the numbers in a bowl of alphabet soup tying to escape from the endless chicken coop loop.

[madfranks]

Hypertiger, please quit spamming this thread with your multiple posts.

[Son-of-Liberty]

HyperKitty must be butt hurt, he didn't invest in BTC sooner.

[BrewTech]

I'm telling you... HT is an advanced spambot.

They do exist, you know.

[Hypertiger]

911 was yesterday.

Yesterday the trust was broken

breach of Trust.

The lies are all falling apart around me now...

Once the coins shrink to nothing...you eventually get to where the lies you are fractionally reserving vanish...and the whole game implodes.

I know I deserve to die for 42 years of crimes against humanity following a lie to its logical conclusion...and studying it in extreme high resolution but the system keeps me alive.

You all have the opposite.

you all think you are innocent until proven guilty.

On fantasy island...which is not what I use to figure out the difference between reality world and fantasy island.

like you all do.

[Hypertiger]

Been like this since birth...while I was beat until I became good at being good so I could tell powerful lies....that were true.

You all just chose become better liars to avoid the beatings.

But that did not save me from fate...Just allows me to enjoy solitude better than anyone....invisibility...like a child...seen and not heard...or known about...

Ghostwalk in and ghostwalk out into the black out.

[Hypertiger]

Think you are going to make it to the other side with a pop gun in your panties kids?

sad.

or

funny.

Depending on your view.

[chad]

ban him!

[madfranks]

Hyperkitty has been banned for 5 days for spamming multiple threads with nonsensical posts.

[midnight rambler]

Difficult to tell whether it's the catnip or lack thereof which causes Twisted Kitty to have the madness it suffers at times.

[Cebu_4_2]

I'm telling you... HT is an advanced spambot.

They do exist, you know.

I would have to agree, to me that's all that makes sense. It didn't pick up on Madfranks message and continued it's algorithm.

[woodman]

If Evil Hypertiger is the locomotive of vulgar and profane abuse

Then good Dr. Sues is the wonderful caboose as far as I can currently deduce.

Running the numbers in a bowl of alphabet soup tying to escape from the endless chicken coop loop.

You gotta admit....this has got a certain ring to it. Actually very good. Much better than most of that bat-shit rap shit.

[Hitch]

You gotta admit....this has got a certain ring to it. Actually very good. Much better than most of that bat-shit rap shit.

That is very good, thanks for pointing this out. Who knew we had a poet on the forum. We managed to ban our only poet.

[Jewboo]

Hyperkitty has been banned for 5 days for spamming multiple threads with nonsensical posts.



http://www.ian-brown.co.uk/forum/images/smilies/applause.gif INSIST HT TAKE HIS MEDS. ONLY TWO DAYS AGO:




I think hypertiger adds some uniqueness to the forum, and I'm glad to have him post here.

[madfranks]

Two days ago he wasn't going bat shit crazy adding full pages of psycho posts to threads. Thanks for the heads up though. http://sea-eaglecam.org/forums/Smileys/default/wavey.gif

[Horn]

Two days ago he wasn't going bat shit crazy adding full pages of psycho posts to threads. Thanks for the heads up though. http://sea-eaglecam.org/forums/Smileys/default/wavey.gif

2 days ago all the Bitcoin loonies were quietly tucked away in their wallets sleeping.

Perhaps all the 'you all ignorants' was really just an act of an entertainer until he found how truly ignorant the forum was?

Then lead himself out the door.

Next victim...

[Hitch]

2 days ago all the Bitcoin loonies were quietly tucked away in their wallets sleeping.

Perhaps all the 'you all ignorants' was really just an act of an entertainer until he found how truly ignorant the forum was?

Then lead himself out the door.

Next victim...

Are you suggesting bitcoins caused Hypertiger to fall off the deep end? Bitcoinism, the spreading syndrome causing marginally sane folks to cross the line, and become completely insane.

[Horn]

Are you suggesting bitcoins caused Hypertiger to fall off the deep end? Bitcoinism, the spreading syndrome causing marginally sane folks to cross the line, and become completely insane.

First Gold and Silver went stale.

Then the internet was turned into a T.V.

Finally HT started associating him/herself with Dr. Seus

All the while Bitcoin made its marketable debut.

Do the math.

[sirgonzo420]

It's funny.... bitcoins have bought some of the simultaneously most expensive and cheapest gold/silver ever.

Let's say that someone bought some bitcoins at $1.

And then when the bitcoin price reached $150, they bought an ounce of gold for say 9 bitcoins.

That means that they bought an ounce of gold for something that cost them $9.

But when bitcoin rose to $395, the 9 bitcoins that purchased their ounce of silver was worth $3555, making that hypothetical ounce of gold simultaneously very cheap and very expensive.