(Natural News) I’m really enjoying the vigorous debate about Bitcoin taking place across the liberty movement. It’s really interesting that many of us who are anti-central bank actually have sharp disagreements now on the Bitcoin situation. Yet we’re all pro-crypto-currency, and we all hope Bitcoin succeeds in the long run. (I’ve been mining Bitcoin for quite some time, and I fully understand the crypto-currency structure.)
As you may know, I’ve recently taken the position (in just the last couple of weeks or so) that Bitcoin is headed for a catastrophic collapse because it currently exists in an irrational, speculative bubble driven by clueless noobs who think Bitcoin generates wealth by magic. Others completely disagree, saying that Bitcoin has only just begun to grow and could reach $1 million per coin. This is an exciting disagreement for the simple reason that somebody is going to eventually be proven really, really WRONG. (Without this division, no market can function at all, by the way. All markets require two opposing sides who disagree on the value of a particular asset.)
I was correct about the dot-com crash in 2001, by the way, and was also correct about the sub prime mortgage collapse. In both cases, before those crashes took place, I was routinely ridiculed by people who insisted “the rules are different this time” and said I was being pessimistic, since “everybody is going to get rich” as long as they all buy in. Sound familiar? This is all the same stuff you’re hearing now about Bitcoin. What Bitcoin promoters don’t seem to realize is that they sound just like the dot com promoters in 1998… who eventually lost nearly everything when the crash happened in 2001.
In any case, I should state for the record that I don’t intend to imply any personal attacks against individuals who disagree with me in this space. We’re all pro-liberty and we actually share a lot of the same goals about making corrupt governments and central banks OBSOLETE, but I do disagree with their justifications for saying Bitcoin will keep going higher. So in the spirit of continuing this “vigorous debate,” I hereby present several questions that, once you answer them, should cause you to seriously rethink the future of Bitcoin.
Seven self-evident questions that will cause you to steer clear of Bitcoin bubble mania
Question #1) Apple produces iPhones. Amazon produces fulfillment services for millions of products. What does Bitcoin produce?
Answer: Nothing. That is, nothing other than increasingly irrational speculative expectations for the price of Bitcoin. Bitcoin isn’t a company and Bitcoin produces no products. As a non-entity, it has no revenues, no assets, no patents and no employees. 100% of its value is based on faith, and faith is a fickle thing.
Question #2) Bitcoin’s “value” has increased by 350% in the last 12 months. What has Bitcoin introduced in that time period that would justify a 350% increase in its value?
Answer: Nothing other than increasing expectations (i.e. “hype” and mania). Again, there is nothing any person can point to in the last 12 months that would cause Bitcoin to be suddenly worth 350% more, other than a 350% increase in the speculative “faith” in Bitcoin itself. There aren’t 350% more merchants accepting Bitcoin, for example, and there aren’t 350% more awesome uses for Bitcoin. If anything, Bitcoin is now slower and more expensive to usethan it was 12 months ago, meaning the advantages of Bitcoin over other forms of money transactions are eroding. The only mathematical reason why Bitcoin is 350% higher now than it was 12 months ago is because 350% more money has been thrown at it, almost entirely by speculative investors whose only goal is to ride the wave of speculation higher and higher, then sell at whatever they think is the top. They see Bitcoin as a “get rich quick” vehicle and nothing more.
Question #3) Bitcoin is being promoted as a “store of value,” yet it frequently will correct by 30% – 50% in under 48 hours. What is YOUR definition of a “store of value” and how does Bitcoin fulfill your definition?
Possible answer: A store of value should have minimal volatility. It should neither gain value overnight, nor lose value overnight. It should be something with a long, multi-generational track record of preserving wealth. Very few things in our world meet these qualifications. Some of the things that do are gold, land and fine art (museum quality). Shares of stock in certain corporations have also stood the test of time (Lloyds of London), but crypto-currencies have existed for barely a single decade. There isn’t a single crypto-currency that has stood the test of time.
Question #4) If you are holding Bitcoin in the hopes of selling it at a higher price, how will you know when to sell it? (In other words, when has Bitcoin reached its peak, in your mind?)
Possible answer: No matter how high Bitcoin goes, lots of Bitcoin holders will continue to insist it will go much, much higher. With people now throwing around estimates of Bitcoin reaching $1 million per coin — without any real justification to back it up, by the way — you would obviously be a fool (according to this logic) to sell it at $10,000 or $100,000 or even $500,000 per coin. Ask yourself: What’s your selling point? How will you know when you reach it? What is your argument for why that selling point isn’t NOW?
In reality, you will sell Bitcoin when everybody else panics and starts selling Bitcoin, too. Like nearly everyone else, you will follow the herd and do what they do. That’s why all speculative bubbles rapidly lose value in a runaway panic once people come to their senses. It’s also why all the masses who think they are buying low and selling high actually end up buying high and selling low.
Question #5) What does Bitcoin offer to secure its dominant market position that no other crypto-currency offers?
Possible answer: Nothing other than name recognition, and that’s fading fast. With Litecoin, Ethereum, Zcash and other crypto-currencies rapidly gaining market share, Bitcoin has now dropped below 50% of the aggregate crypto-currency market capitalization for the first time. Visit CoinMarketCap.com to see a list of 100 more crypto-currencies, including Ripple, Dash, Stratis and Monero. Many of these crypto currencies are technically more advanced, more secure and more anonymous than Bitcoin. There is really nothing Bitcoin has that’s unique enough to prevent people from selling Bitcoin and moving into some other crypto-currency en masse. Thus, the argument that Bitcoin will be worth millions of dollars per coin because it will become the world’s dominant crypto-currency and eventually replace the U.S. dollar really has no rational basis.
Question #6) What is the profile of the typical “new buyer” to Bitcoin today vs. five years ago?
Possible answer: Five years ago, Bitcoin was being purchased by pro-liberty, high-IQ technical people who understood encryption, peer-to-peer structures and the distributed blockchain ledger. Today, Bitcoin is being purchased by Japanese housewives who think it’s a “get rich quick” discovery that generates wealth by magic. The radical change in the mindset of the people now ENTERING the Bitcoin marketplace should tell you something very important about where this is headed. People who have no specific loyalty to decentralization, peer-to-peer cryptology and borderless, bank-less currency also have no specific loyalty to Bitcoin or any crypto-currency at all. Once the “new thing” mania wears off on the noobs, they will flee Bitcoin and hop to the next popular investment craze that comes along.
Question #7) How will you sell Bitcoin if the power grid goes down?
Answer: You won’t. Without electricity, Bitcoin ceases to exist for the simple reason that it only exists as a computational hologram, requiring both a steady stream of computational power and a functioning internet to stay alive. Now, you might argue that the risk of the power grid going down is very slim. But NASA puts that risk at about 12% every decade due to the appearance of massive solar storms that would fry the current power grid structure and thrust much of our world back into the 1800s. A single EMP nuke attack from North Korea would also accomplish much the same thing.
For these reasons, Bitcoin is highly vulnerable to EMP, solar flares and nuclear war. Physical gold, however, outlasts all such disasters for the simple reason that gold is an element of matter and cannot be destroyed by any normal means, even if you try. (You can’t burn gold. All you can do is melt it into another shape of gold.)
I haven’t heard a single rational argument that explains why Bitcoin isn’t in a speculative bubble
Since I began warning about Bitcoin valuations a couple of weeks ago, I’ve been criticized by several Bitcoin advocates who nonetheless share my philosophy of liberty, self-reliance and decentralization of the money supply. I’ve read their arguments and attempts and logic, but none of them that I’ve seen have been rooted in anything resembling rational thinking.
What I really see right now is Bitcoin holders engaged in Bitcoin self-delusion, which is understandable because it’s a psychological phenomenon that’s well known in the world of speculative investments. Once people make a speculative investment decision in anything, they then begin to subconsciously find ways to rationalize that investment, convincing themselves more and more that their decision must have been a good one. These people, in other words, aren’t lying to you when they say they believe Bitcoin could go up to $1 million per coin: They truly believe it!
That’s why it’s dangerous to listen to Bitcoin analysis from people who own Bitcoin. It carries the same pitfalls as listening to stock buying advice from someone who’s trying to get you to buy the same stocks they already own: There’s an inherent conflict of interest at work. Only someone completely outside the system — who owns no substantial amount of the asset — can look at it with a clear head.
That’s where I’m coming from. I own almost no Bitcoin (about 0.35 Bitcoins at the moment), having recently traded Bitcoins for physical gold. If Bitcoin goes up, I profit virtually nothing, and if Bitcoin goes down, I lose virtually nothing. I’m approaching the Bitcoin issue with a clear head and an objective, rational mindset which just happens to be unpopular among Bitcoin holders for all the obvious reasons. They see my articles and commentary as a risk to their Bitcoin assets, which is proof that Bitcoin’s valuations are so fragile that the mere criticism of the Bitcoin bubble might cause a wipeout of Bitcoin value. (If Bitcoin were really a store of value, its holders would have nothing to fear from someone talking about Bitcoin being in a bubble, would they?)
Bitcoin holders to the world: Shut up, stop asking questions and just BUY MORE BITCOIN, dammit!
Yet, they have a serious double standard in criticizing me for talking about this. Essentially, I’m being told that I should “stick to health topics” and stop talking about Bitcoin because only Bitcoin people know what they’re talking about. At the same time, they insist that everybody should own Bitcoin because the crypto-currency should be so widely adopted everybody has some. Do you see the obvious conflict? On one hand, they claim Bitcoin is so specialized and technical that only certain “Bitcoin elite” have the right to talk about Bitcoin. But at the same time, they claim everybody should buy Bitcoin, presumably even if they don’t understand how it works and have no right to talk about Bitcoin. This entire argument strikes me as borderline hucksterism. If everybody is supposed to own Bitcoin, why can’t everybody talk about Bitcoin? Are we all supposed to just buy Bitcoin, ask no questions and shut the hell up? Seriously? This is the argument of the “liberty-oriented” Bitcoin movement now?
BOTTOM LINE: Even though I have a long track record of promoting crypto-currencies like Bitcoin, the Bitcoin hype has now clearly turned into a “mania” craze. And what takes real courage and integrity is to state the obvious when everybody else is attacking you for doing so. Right now, I’m calling bulls##t on the current Bitcoin mania… at least until the speculative noobs are fleeced out of the system and Bitcoin values return to rational levels. Once that happens, I may very well advocate Bitcoin again. It’s not Bitcoin itself that’s the problem here, you see: It’s the bubble mania that’s going to hurt a lot of people who are buying into Bitcoin right now.
By the way, the only way new investors can “buy Bitcoin” is if someone is selling Bitcoin to them, which means by definition that plenty of Bitcoin holders agree with me because they are obviously selling Bitcoin to new buyers, trading digital ledger entries for cash and thereby transferring Bitcoin price risk to the noobs, most of whom will likely lose the vast majority of their investments once the Bitcoin bubble bursts.
Bitcoin will likely go down in history as the greatest financial fleecing of Asian investors in the history of the world.
(Natural News) Scientists have stumbled upon an astonishing discovery of an ancient tribe living on a remote Pacific island that ritually poisons its own food and trashes its food-producing ecosystems.
According to Dr. Eugene Navaroski from the Technical Institute of Ancient People, this nearly extinct tribe was discovered to engage in the most astonishing self-destructive behaviors:
- The tribe has a rudimentary monetary exchange system based on clam shells which are used in barter.
- The elders of the tribe have created revenue streams where they collect clam shells in exchange for toxic chemicals harvested from poison plants. These chemicals are required to be sprayed on all foods consumed by the tribe and are said to “ward off evil pests.”
- The tribe suffers from very high rates of cancer, liver disorders and brain disorders due to the routine consumption of poisons that are added to the foods (in order to make the elders wealthy with clam shells).
- The poisons added to the food supply survive human digestion and are urinated out of the body where they poison the local ecosystems, causing widespread ecological toxicity and mass animal die-offs.
- The ecological toxicity is causing an island-wide food supply collapse, which the elders blame on “evil pest spirits,” thereby justifying their mandate that toxic poisons must be added to all foods in order to scare away the evil pests.
- Scientists have observed that as disease spreads across the tribe and ecological damage destroys the sustainability of the food supply, the elders are sitting on massive mounds of clam shells and believe they are “rich.”
- The tribe has been dubbed the “Suicide Tribe” by scientists who say they’ve never witnessed such shortsighted, self-destructive behavior in human societies before.
But wait: YOU are part of this tribe, too!
Now, allow me to pull back the veil on this allegory and reveal the greater truth: There is no such tribe on a remote Pacific island. There is no “Technical Institute of Ancient People” and Dr. Eugene Navaroski is a fictional name. In truth, the “tribe” is modern Western civilization which routinely poisons its entire food supply with pesticides and herbicides in order to make certain corporations “rich.”
The “elders” are the pesticide corporations like Monsanto, Bayer and DuPont who collect profits from the mass poisoning of the food, thinking they are “rich” corporations while their own children are dying from cancer and their lands are being decimated for generations to come.
The suicide tribe is us! You are part of it. Every time you buy non-organic products are the grocery store, you are financially subsidizing this suicide cult and contributing to the destruction of the ecosystem.
Earth is the “island.” And we are destroying it with tens of millions of pounds of toxic chemicals sprayed on our lands and food every year. We are poisoning ourselves while poisoning the planet, and the global food supply is collapsing while our children are stricken with cancer, obesity, neurological disorders and diabetes.
Everyday Americans are eating deadly poison in their food while thinking their 401K investment retirement funds are “growing wealth” because they are invested in shares of Monsanto or DuPont. They think they’re getting rich while they’re actually poisoning their world for generations to come. Meanwhile, media outlets push the poison in the name of “science,” collecting money from wealthy corporate advertisers to push more poison propaganda onto the world, claiming our growing population needs more pesticides, more glyphosate and more GMOs to “feed the world.”
Their piles of clam shells are growing larger and larger while the food-producing soils of our world grow smaller and smaller. Our people are dying, our soils are being poisoned, aquatic ecosystems are collapsing and yet corporate executives think they are “wealthy.”
Welcome to the suicide cult of modern human civilization, where people buy and eat poison every single day, thinking they are “safe” from pests while they are dying of cancer and destroying their world.
Wow, run for the border! This is like a scene from a cattle call for a really bad movie. So sad that conditions are horrendous in Ukr that normal ppl had to flee for their lives. I predict that 90 day window would make the “Syrian” refugee crisis look like daycamp. This latest flood of “vacationers” starting to look like a Black Friday sale at Walmart, venture to guess how many are coming back?!
This could only accelerate the collapse of Ukraine, just as the West has planned, hoping for Russia to pick up the pieces. As foretold in your excellent ESW2 Webinar, this Western manufactured problems has an accumulated effect of postponing the inevitable collapse for the US… but the devil is in the details! Great Webinar, thanks for elucidating all the fine points and timelines!!! 🙂
Stampede to get out of Ukraine and into Poland! The video below is self-explanatory. This is happening on the border between Ukraine and Poland, the moment 90-day visa-free regime (Ukr/Rus: ‘bezviz’ = ‘without visa’) between EU and Ukraine comes into effect. The voice behind the camera repeatedly speaks in Ukrainian: “Look, Mr. Poroshenko, this is what our Euro-integration / bezviz looks like.”
As I explained since 2014, after the Kiev junta and ukro-nazis came to power, what little talent, brains and active population was still left in Ukraine, has been leaving. Millions moved to Russia. Anywhere between 6 and 8 million either work and live in Russia or have received Russian citizenship between 1991 and 2017. At least 1.5-2 million became refugees in Russia after Poroshenko junta came to power. Up to 3-4 million also left to the EU and US. This process greatly intensified after 2014 Kiev Maidan.
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Every time a new topic trends on the Internet, scammers take advantage of it.
You must have heard of Bitcoin and how in recent days it has made some early investors millionaire overnight.
Yes, the Bitcoin boom is back, and it’s real — a digital currency that has just crossed a new milestone today. The current price of 1 BTC or 1 Bitcoin = US$2,850.
An American con man took advantage of this boom in Bitcoin market to run bogus bitcoin mining schemes and earn millions of dollars.
Garza is now facing a $12 Million (£9.2 Million) penalty for running the bogus schemes – what lawmakers have certified was a “Ponzi scheme.”
According to the SEC, Garza used the “lure of quick riches” in order to get people to invest in the bitcoin mining schemes, which means those who add their computing power to help verify transactions, a practice known as mining, are rewarded with Bitcoins.
Garza’s GAW Miners and ZenMiner purported to provide shares in cloud-based Bitcoin mining machinery, but nothing like that was ever built by the operator.
Garza told investors that he had enough computing power to mine a lot of bitcoins on their behalf and share the proceeds, but in reality, he just used cash from new investors to reward earlier joiners, which is nothing but a fraudulent “ponzi” scheme, according to the SEC.
Few got back their money they invested, but many left without a single penny.
The complaint against the Bitcoin mining schemes was filed on 1 December 2015, and on June 2, the US District of Connecticut federal court sided with the SEC, ordering both GAW Miners and ZenMiner to pay a combined of $10,384,099 in disgorgement and prejudgment interest, along with $1,000,000 in damages.
Both GAW Miners and ZenMiner companies have now been shut down.
However, a ruling is yet to be made on the Bitcoin funds collected by Garza. In 2014, when Garza was running the bogus schemes from his home in Connecticut, 1 BTC was equal to $450, and today it is around $2,800.
So, the $20 Million funds Garza took from the investors today worth around $150 million.