The total value of all outstanding bitcoins—its market capitalization, if you will—has now topped $1 billion. That’s quite a milestone, considering bitcoin isn’t backed by any real asset or faith in any government. A big reason for its success is the principle of sound money …something Ron Paul educated the American people about during the last two election cycles… dropping the phrase “Austrian school” on Jay Leno.
Now that bitcoin is being taken seriously, we are seeing a seismic shift in the world of international finance such as the world has never known. Now watch our world radically change as we remove the greed driven middle man who regulated the value of our legal tender from his ivory tower. These money junkies are in a race to rule the world, but the power these “elites” lust for is tied to an old money system and that false authority is house of cards… ready to fall.
One might compare the rise of crypto-currency and it’s effect on banks and insurance companies to the invention of the printing press and its impact of the Catholic Church. In the days of Martin Luther the Chatholic Church ruled the world. Were you to walk into any town or city in 1513 you would see that the spires of the Church towering over every other building. Five hundred years later the tallest buildings in any major city are either banks or insurance companies, thus it should be evident to anyone who is paying attention who rules the world today.
Its the golden rule, those who have the gold make the rules. And there is a clue, it has always been those institution that move money around. The church moved money (promising treasure in heaven as they sold a pardon for sin) and today the bankers, like Goldman Sachs CEO Lloyd Blankfein still claim: “I’m Doing God’s Work.” Yeah, from my perspective, not a lot has changed in terms of money, corruption, and thinking that one’s own greed is part of God’s ordained plan for a better world.
Today’s Martin Lurther is Satoshi Nakamoto. Lurther publish his Ninety-Five Theses in 1517 and Satoshi revealed the open-source code for bitcoin in 2009. The German monk strongly disputed the claim that freedom from God’s punishment for sin could be purchased with money. Nakamoto wanted to give people the ability to move money without using a bank, and doing this is like talking to God without a priest.
The real value of Bitcoin is not found in the market price, but rather in the code itself.
Historically, governments inevitably debased their own currencies to finance expensive foreign wars and/or a run away welfare state (in our case both). Naturally, these governments force the people to only use the so-called “money” that they declare to be legal tender (…even if something else would work better). So we find that through out time, legal tender laws are always put in place where ever there is a fiat currency.
Before bitcoin it was precious metal that provided the “anchoring” for fiat currencies and held inflation in check. Now the same principle of sound money that used gold and silver to chain down the mischief of governments is the fundamental operating principle employed in the bitcoin code. Simply stated, bitcoin is electronic cash that is not subject to the false authority of government (the anarcho-capitalist inside of me loves that) and therefore, like pure gold or silver, it will NEVER loose it’s value due to inflation.
It has been said, “Bitcoin could be the greatest invention in human history.” Why would anyone say this? Because it fulfills the dream of Thomas Jefferson who remarked that in perfect government “the issuing power [of money] should be taken from the banks and restored to the people, to whom it properly belongs.” Thanks to bitcoin, it has been.