E-gold versus Bitcoin or Douglas Jackson versus the Winklevoss

E-gold was most certainly what inspired Bitcoin founders to create the crypto currency.

The gold backed currency, E-gold was shut down in 2008 by the US government and it’s founders charged with conspiracy to engage in money laundering and operating an unlicensed money transmitting business.

One should wonder what differences there are between E-gold and Bitcoin since both aimed or aim at giving the ability to one another to transfer funds anonymously without going through the regular banking structures.

In fact E-gold was much better than Bitcoin since it was backed by real gold! This made it a true currency while avoiding the high volatility.

Anybody looking closely at Bitcoin, can not deny it is being used to launder money.

This is common knowledge and this is probably what helped Bitcoin grow before it surged as it recently did.

E-gold founders were actually prosecuted precisely on the basis that they helped laundering money and faced a maximum sentence of up to 20 years in jails before they stroke a deal with the prosecution.

E-gold was an easy target for the FBI since there was an asset to confiscate, the gold which was backing the electronic currency and known founders that were actively promoting their business.

In the case of Bitcoin we know for a fact that it is being used by criminals and very certainly does the CIA / NSA keeps a trail of every transactions.

Now, promoting and advocating openly and publically the use of Bitcoin within the United States, declaring itself as a rather non-negligible holder of the electronic currency, shouldn’t all of the above be seen as conspiracy to engage into money laundering?

Why did we even need to have the Senate hearing a few weeks ago? It looks like the US government dramatically failed and should have clamped down on Bitcoin promoters much earlier.

Maybe China isn’t just about to become the most powerful economy in the world, maybe it is also about to become the number one source of influence across the Globe!

If we consider the Winklevoss have been some of the strongest voices and lobbying activists in order to promote Bitcoin in North America, in which they have openly taken a rather large interest, shouldn’t the American prosecutor start looking into it with the same vision as it did with E-gold?

Is my view slightly far-fetched or is it all about Douglas Jackson not having the same friends as the Winklevoss in DC?

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Bitcoin: Here comes the kill? A rather major blow for the FED

The Chinese Central Bank just gave the clearer signal any Central Bank could have ever given about Bitcoin.

What is most surprising is that China has been the first one to move into that direction.

Not only is China about to become the world number one economy, but with this move, its Central Bank is also gaining huge credibility at the expense of the FED.

Remember how everybody was being so careful with wording at the last Senate hearing on the 18th of November, A hearing that felt highly corrupted by the lobbying of a few with high interest into Bitcoin only looking at short term gain. .

China for the record has been extremely clear. The FED or the US government should now follow.

What is the point of letting thrive such a pseudo currency at the expense of the dollar if not the whole of the American economy?

The beauty about the Chinese statement is that it will let the people of China using BTC at their very own risk while they won’t be able to really use it within the real Chinese economy.

While even the old Greenspan is able to see there a huge bubble, let wait and see for Bernanke to act sooner rather than later before too many honest Americans be taken along for the ride. Image

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Can we predict the timing for the big fall of Bitcoin?

bitcoin clock

Bitcoin is only thriving on the back of a lack of regulations from major governments.

There is no half way through it, either Bitcoin is to be recognized and authorized as a currency or it has to be banned by major economies through the world.

It is just a question of time before governments start seriously looking into it even though they might be reluctant to do so.

The US Senate will meet next week, on the 18th to discuss about the issue.

In the world as we know it with the economy being global, one should ask himself why would any government on earth be willing to let thrive a currency upon which it is impossible to have any control, making it easier to trade forbidden products or finance all sort of criminal activities?

We can imagine all sorts of answers, maybe some politicians, whether they are Asians, Eastern Europeans, Europeans or maybe even Americans are using it to tunnel briberies or maybe, and this is more likely, are the US secret services (the CIA) via PRISM monitoring criminal activities through Bitcoin movements.

Until a few weeks ago, the total value of Bitcoin was below $2 billions while it is now at about $4B with about 12 millions Bitcoin in circulation and prone to further rises if no action is taken.

Yet citizens, central bankers or regulatory bodies will soon ask their governments to take a clear view on Bitcoin and all for different reasons but a decision will have to be taken by most economies.

The beauty is that whether or not most governments authorise or make it a crime to use such a currency, the outcome for Bitcoin will be the same, a fall in value!

Yes, would Bitcoin be recognized as a legitimate currency or not won’t make any difference. The lethal injection here will just and only be the fact a decision will have been taken on the issue.

The explanation for such an assumption is very simple; Bitcoin has one big issue preventing it from being considered as a proper currency; it’s insane volatility!

This is explained by the very fact its value isn’t backed by tangible assets but just by an ideological smoke screen.

If Bitcoin is authorised, then any other anonymous crypto currencies (encrypted bearer certificate for instance) backed by tangible asset would be authorized and no doubt it would drain dry the value of Bitcoin.

Would most major governments make it a crime for their citizens to use Bitcoin or any other similar anonymous currencies then again the outcome would be most certainly a fall in value for the young pseudo currency.

The only question is when while probably sooner rather than later; follow with great attention the US government agenda on the issue, starting with next week on the 18th.

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BITCOIN FOR GOLD OR BITCOIN AND THE GOLDEN SMOKE!

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Pro bitcoin are not short of arguments when it comes to explain why not only bitcoin is here to stay but also to increase in value.

Many see bitcoin as the new digital gold.

No doubt that for some early investors, they certainly stroke through something similar if not better than gold with bitcoin.

Yet let’s not be wrong, bitcoin is a digital “currency” with no asset backing it s value.

The fact the value of a bitcoin has increased suddenly from not much to more than USD200 before falling back to about $120 can be explained retrospectively.

It might even be possible to think that bitcoin may rise to $1000!

Yes it is possible, who knows where bitcoin will go from here before it heads nearer to zero in value.

What has propelled bitcoin so high so far?

Pretty much the fact no government can control it, it is a totally free market, it is anonymous, no more than 21 millions bitcoin will ever be created and it is mainly the most genius money laundering scam ever imagined.

That doesn’t make gold.

Bitcoin is just an encrypted digital currency whose value is backed by thin air.

Gold is something one can touch and will be able to touch forever. Just imagine a world without the net for a second, a world where communication systems have been blown up, a world where some are suddenly starving to death and you’ve got some food or petrol up for sale.

What would you be more likely to accept; Gold or bitcoin?

Gold does have one common attribute with bitcoin, just one, which is good for gold but no good for bitcoin: never has one ever succeeded into making gold!

You can mine gold but you can’t make gold.

That’s where the value of gold mainly resides, in the fact that in can’t be fabricated but just mined.

Bitcoin fans will say the same goes for bitcoin! True enough, one can mine bitcoin but can’t create bitcoin and while the amount of gold on earth is limited so is the amount of bitcoins.

The difference is gold is gold, a unique precious metal with very specific attributes while bitcoin is just an anonymous encrypted digital currency.

The rise in value of bitcoin is only a temporary accident!

Until recently bitcoin was so insignificant that no government had even bothered fighting it, maybe were they even discreetly monitoring it through anti-crime agencies.

One should be assured that never a government will allow an anonymous digital currency to thrive, just because what’s the prospect of a government that can no longer raise taxes?

Government may have been taking time to react but they eventually will and that will mean near zero value for bitcoin.

Would governments decide to sponsor such a currency, it would then be the end for bitcoin regardless.

Why? Just because the flux will head toward something more sophisticated backed by reel asset value and not just thin air.

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Bitcoin spreading like gangrene; fans, be careful as to what you’re wishing for!

As the net is slowly reshaping the world, it is no wonder that the prospect of a global digital currency over which no government could have any control is most welcomed by libertarian fans across the world.

Yet although bitcoin is currently not considered as a currency, eventually the US government or any governments will have to start categorising it.

The bitcoin logo

The bitcoin logo (Photo credit: Wikipedia)

Remember this is a totally free market through which is flourishing a parallel economy.

While bitcoin is flying high through the press and any negativity about it struggling to surface, weather because the idea of a control free currency is great or because it would be seen as uncool to have a negative view, some should start thinking further about the impact of such a currency becoming mainstream within our society.

Bitcoin as it stands, is the most genius money laundering scam ever imagined but this is just the tip of the iceberg of what’s really shaping behind it would the digital currency becomes mainstream.

Most of us don’t like criminals, weather they are human traffickers, drug dealers…  Yet although many would be rightly concerned about these issues, they might still welcome bitcoin for different reasons and winners may not be current bitcoin promoters.

Tired of paying too much taxes, tired of governments financing minority groups whose opinion you disagree with, tired of paying for people on benefits abusing the system, tired of a government that seems to be more and more intrusive in your life?

Bitcoin is the solution!

The same way as many industries were reshaped with the arrival of the net, society, governments would then have to be reshaped would bitcoin as we know it survives.

Less taxes means less for the government, less or nothing for the poorer.

Anybody promoting bitcoin should first think about the longer-term effect of bitcoin on society and weather or not this is what he or she is wishing for.

Before one invests into bitcoin he should ask himself weather or not he really believes any governments would let this happen?

The answer is probably not while proper intervention may take time to organise.

Bitcoin being global, a lethal intervention may come from other states with China possibly on the list.

What would be the effect of an intervention on such an investment? Hopefully your guess may be as good as mine!

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A mort l‘esclavagisme à la française, vive l’anglais, vive la liberté!

Alors que le projet de loi sur l’enseignement de l’anglais à l’université fait polémique au sein même de la majorité, les français toutes familles politiques confondues devraient embrasser un tel projet!

Peut-être est-ce d’ailleurs le plus intelligent des projets, que le gouvernement actuel ait pu proposer depuis l’investiture du président Hollande.

Ca commence par l’université mais espérons que cela descende au collège ! (Cela existe déjà dans les collèges internationaux seulement réservés à une certaine élite)

A tout ceux qui s’y opposent par peur d’y voir la fin de la langue française approcher, qu’ils ne s’y méprennent,  c’est justement en refusant l’apprentissage de l’anglais et l’apprentissage en anglais dans nos écoles et universités, que nous allons tuer le français.

Pourquoi et comment la langue française est-elle devenu si prédominante, a t-elle eu un tel aura au cour des siècles derniers dans le monde,

Si la culture française fut tant diffusée à travers le monde, c est avant tout parce que des français sont partis à la conquête de nouvelles contrées, qu’ils ont su s’imposer et pas toujours dans la douceur mais à l époque il n y avait guère de place pour le politiquement correct, c est ainsi que la France réelle puissance économique, rayonnait à travers le monde.

Les discussions dans les salons dorés ne furent que le résultat avant tout d’une conquête économique.

Ce qui attire dans une langue ce n’est pas tant sa beauté mais sa praticité et ce vers quoi elle ouvre les portes.

Toutes langues étrangères ouvrant les portes du succès et de la richesse sera étudiée. Ce n’est certainement pas pour la beauté de la langue chinoise que des parents poussent leurs enfants à étudier le mandarin. Pourtant tous chinois dans les affaires parleront anglais. En revanche, l’homme chinois ne sera que plus sensible à son interlocuteur s’il constate un effort de rapprochement culturel au travers du langage.

Que Mme Taubira cesse de s’offusquer quant à la pratiques de l’esclavagisme par nos ancêtres ; non seulement cela fait parti de notre histoire, de l’histoire de certains peuples ou civilisations ayant dominé d’autres civilisations à un certain moment dans l’histoire du monde, mais surtout l’esclavage n’a jamais cesser d’exister, il a juste évolué, il a changer de visage pour finalement arriver au sein même de notre société.

Les français sont devenus les esclaves de la société moderne, des esclaves de la consommation de base, condamnés jusqu’a présent, pour la plus grande majorité à rester prisonnier en France avec pour seul fenêtre sur l’extérieur la vision socialo-marxiste et peu objective qu’est celle de la grande majorité des medias français.

Comment pouvoir ne serait-ce que se fonder une opinion lorsque vous n’avez accès qu’aux informations qu’une certaine élite se plait à vous distribuer pour mieux vous manipuler ?

Grace à internet (qui reste très fortement contrôlé par le pouvoir en France) de nouvelles ouvertures sont apparues mais quelle est l’utilité d’avoir accès à la presse internationale lorsqu’on ne peut la comprendre ?

Nos frontières sont ouvertes, mais fuir pour aller ou ? Quelles sont les perspectives d’une personne, élevée dans la crainte, qui ne pourra communiquer avec d’autres contrées, ne serait-ce au sein même de l’Europe mis à part la Belgique, tout simplement parce elle ne connaît pas d’autres langues, qui plus est l’anglais, langage universelle du monde occidental ?

N’est ce pas une forme d esclavage que d’être contraint à rester dans un système où il n’y a plus de place pour le rêve, la réussite,  ou toute ambition est tuée dès le plus jeune age ?

Oui le français est libre mais libre d’aller nulle par, libre de gagner le smic et surtout pas trop, libre de vivre dans une HLM (25% des logements en France bientôt), libre de s’acheter une télévision toujours plus grande et plus fine pour pouvoir  suivre la doctrine française rabâchée au 20H et éventuellement rêver si tant est qu’il puisse encore maintenant que Koh-lanta n’est plus !

Quel est l’avenir d’un pays qui a peur, qui n’a plus de rêve, qui tue les rêves, fait fuir ses élites, qui n’auront pas attendu les cours  d’anglais pour s’évader,  qui ne cesse que de regarder dans un rétroviseur et qui s’imagine que taxer encore et encore plus les riches est la solution aux problèmes ?

Si nous avions pu imaginer un seul instant qu’un tel projet de loi émanerait d’un gouvernement de gauche !

Merci à Mme Fioraso qui bien plus qu’au secour de la langue française vient au secoure des français !

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US intervention and the perspective of slow death for bitcoin!

The US authorities may not manage to kill bitcoin yet either way they probably don’t really care so much.

What however they care about and certainly don’t want to happen is bitcoin to become more prominent, out of control and US citizens in masses to start using it.

Bitcoin is before everything a way to exchange products, services and keep value, anonymously and outside any regulated system using the net.

This is precisely what criminals are after, aside from libertarians.

Yet just forget about libertarians when a “currency” has such volatility.

Until recently bitcoin was a small confined digital “currency” whose total market value was about USD50 to 100M;

No doubt the FBI, the CIA or any other special agencies would have been following bitcoin users for a while and don’t think they don’t have their own army of highly skilled hackers (some may want to read Dark Market) working hard and analysing all possible movements above a certain value. Bitcoin might be totally anonymous, transparent, but eventually one has to use exchanges, platforms over the net to pay using bitcoin.  Maybe some of these platforms were even set up by some anti-crime agencies.

From these exchange platforms you may reach the end user one way or another.

However when the total value of the bitcoin market explodes to reach billions rather than millions, not only the value of a bitcoin increases but so does the number of transactions making any form of control or use of information near impossible.

What triggered this surged in value?  Some might believe it was money flowing out of Cyprus with nowhere else to go, some might believe it was rather orchestrated by large initial bitcoin holders that could easily manipulate the price and transform bitcoin into a clever scam to launder money, and some more might be thinking about other avenues.

We know for sure this rise in value spurred considerable interest for the still recent “currency” especially across the United States.

Many American investors, entrepreneurs are now trying to pour real $$$ into peripheral businesses, some global retailers are thinking about accepting payment against bitcoins when they don’t already.

While this is driving further the bitcoin mania and leading toward the democratisation of bitcoin, it familiarises non-users with the idea that they too should maybe have a look at the new popular “currency”.

This is precisely what the US government doesn’t want and will prevent from happening before it really starts.

Because of the complexity of bitcoin some might expect it to be difficult.

They ‘re rather wrong; it will probably be like a walk to the park and this without the need of introducing new legislations.

How? You don’t need to look any further as to what’s just happening.

State agencies will either close one after the other any exchange platforms such as Mt.Gox or any companies exchanging bitcoin for cash such as Dwolla, it is just a question of time.

They will of course start attacks looking at any possible legal angles and would they not succeed they will then just hack into these sites or companies’ bank accounts to put them under heavy pressure.  Nobody will know for sure the origin of these attacks but the consequences for bitcoin holders will be painful.

Remember what we are dealing with here; mainly criminals!

Companies such as Dwolla are totally unregulated entities.

The general message will be clear and loud.

If some want to take the risk at investing into bitcoins, they can but one shouldn’t put much faith into their investment. .

What’s the value of a currency, not backed by any asset but thin air that one wont be able to properly use and whose value might easily be manipulated? Not much!

When Tyler Winklevoss says “you can laugh all you want but bitcoin’s real” I certainly do laugh and loud while I feel rather sorry for who might be pilling into bitcoin right now, using it’s hard and honestly earned real dollars.

If we put aside the valuation aspect, what’s going to kill bitcoin at slow pace is its own success and recent lobbying. As long as it was in the dark and controllable (many would think it wasn’t) the authorities didn’t care, maybe were they actually gaining much information through it. Now it has become what it, a prominent uncontrollable money laundering scam, it has to be killed!

Links:

http://shadowcolumnist.wordpress.com/2013/05/10/bitcoin-beware-of-further-falls-the-closer-its-value-goes-to-zero-the-closer-it-gets-to-its-true-value-2/

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

http://www.securelist.com/en/blog/208193218/Dark_Market

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