Wednesday, December 4, 2013

10 Ways Bitcoin Is Better Than The Federal Reserve

Dees Illustration
Eric Blair
Activist Post

The Federal Reserve System is a parasite that feeds off human suffering. It is indeed the dragon that must be slayed for humanity to experience true freedom. I want to End the Fed, but I want it to end as peacefully and orderly as possible. That is why I buy Bitcoin.

In June 2011, I wrote this about Bitcoin: "It seems the precise remedy to such a system would be decentralization of currency and banking, or functioning in an underground economy outside the system. There may be hope for accomplishing both with the crypto-currency that is beginning to gain recognition, the Bitcoin."

Over two years later, Bitcoin remains by far the best, most disruptive tool we've ever had to overthrow the corrupt banking system. Before Bitcoin, our only option was to fight the current system with protests and begging our politicians to "audit" the Fed, all while arguing about what's a better replacement; the gold standard or public debt-free money. There have been few viable ways to simply opt out of or withdraw our consent from the current financial matrix, until Bitcoin.

I view my monthly Bitcoin purchase as a donation to unseat the bankers as the puppet masters of our world.  If it gains in value, fantastic, but I will never sell them for dollars. If vendors choose not to accept them, then they won't get my business. If it goes to zero; well, it was certainly a better option than contributing to Campaign for Liberty to get a partial audit of the Fed, right? But, to be clear, I'm firmly convinced that Bitcoin will be the world's reserve currency.

Actually, the Bitcoin protocol has more potential than merely rendering the banks and Wall Street obsolete. It could become the global ledger of companies, stocks, contracts, patents, insurance and so on without the need for paper pushers in the middle. This protocol changes everything.  The sooner you comprehend that, the better for you and for society. But that's a whole other article.

For now, here are ten ways Bitcoin is better than the Federal Reserve System:

Voluntary: Bitcoin is voluntary, whereas Federal Reserve notes are enforced at the barrel of a gun domestically and by a vast military complex abroad. Yet, no army can stop an idea whose time has come. Americans now have a choice in Bitcoin -- and China, Russia, and many others are dropping the dollar like a bad habit in global trade. A police state or more war can't stop the rush out of dollars, though they will try.

Decentralized: Bitcoin has no central authority voting to give your money to their friends. Being decentralized also gives Bitcoin its security because there's not one website or company that can be hacked, corrupted or seized.

Supply Controls: The supply of Bitcoin is controlled by a fixed algorithm where only 21 million will ever be created, although it's nearly infinitely divisible. The Federal Reserve System has no supply controls over its unit of account. They can print and lend as much into existence as they want, and do it in secret.

Transparent: The Bitcoin protocol code is open source, as is its ledger of every transaction ever made. The first ever partial audit of the Fed revealed over $16 trillion in secret bailouts before they quickly closed their books again to public representatives tasked with controlling the purse strings.

Free Market Value: The value of Bitcoin is based purely on the free market's voluntary adoption of it due to its utility as a payment system protocol.  Sure some is speculation, but well deserved. Although many market mechanisms exist that contribute to the value of Federal Reserve Notes, ultimately it is about supply n' demand and interest rates which are manipulated by an unaccountable board of directors.

Debt Free: There is interest owed on every dollar created in the Federal Reserve System.  That interest is money yet to be created, which perpetuates a system of exponentially growing debt deliberately designed to gain control of entire populations. It's indeed the greatest scam in the history of mankind. Bitcoins, on the other hand, are interest-free and transaction fees are microscopic.

No Middlemen: There are no middlemen needed to use Bitcoins. No middlemen making free money from government bonds. No middlemen charging high fees to store and use your money. No SWIFT clearing house needed to collect a fee to verify and approve global transfers. Gone. Bitcoin makes them all irrelevant.

No Favoritism: During the 2008 financial crisis the Federal Reserve and the US government literally chose economic winners and losers depending upon who they gave special bailouts to. Only innovation and production will choose the winners and losers in the Bitcoin economy.

No Income Tax: The Federal Reserve Act of 1913 was quickly followed up by the income tax. Without the income tax, debt-based money could not exist.  Bitcoin needs nothing but voluntary cooperation to exist, and you might be able to hide transactions from the IRS. This one should get double points on this list.

Gain in Value: When a currency is increasingly devalued, salaries will consistently fall behind the cost of living. The Federal Reserve System should be viewed as the number one cause of poverty. Bitcoins are naturally deflationary because of its fixed supply. As more people adopt them, the more they'll be worth. It's that simple. Meanwhile, the Fed is still printing like crazy as the world moves away from the dollar. Which would you rather be paid in or invest in?

I know there are naysayers in the alternative community; gold-silver purists, some preppers, and the "it was started by the NSA" crowd. Of course gold, silver, food, tools and skills of independence are excellent investments in this current environment. Yes, get those things first. But just buy a small amount Bitcoin, use them, and learn about them. Invest them in other altcoins.

When you experience how it works and what it's capable of you will instantly know the value of it -- not conceptualize or rationalize -- but know the power of this technology. Barring an unforeseen catastrophe, it will render bankers and Wall Street completely obsolete. And it is highly unlikely that it can be stopped.

In short, I buy Bitcoin as an act of defiance. I consider them a donation to build something better. I buy them because I support uninhibited free trade between peers without asking for permission or giving a cut to the mafia. Finally, I buy them because I think they're a safer bet than holding dollars.

Recently by Eric Blair:

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Anonymous said...

the U.S. won't come superior out of the current crisis. sorry guys.
couple things will matter;
1. personal skills
2. faith
3. real goods in your possesion
bitcoin will die at the end

Anonymous said...

Amen to this!

Anonymous said...

Bitcoin will survive longer than the dollar.

Anonymous said...

Bitcoin will survive as long as the "powers that be" allow it to. Not where I would put my money!

Anonymous said...

The "powers that be" cannot shut down bitcoin or even restrict it very much. As Erik Voorhees recently said although Bitcoin is not perfectly immune to gov't restrictions, watching gov't try will be "entertaining".

Anonymous said...

I agree. Cryptocurrency our best chance of breaking out of our slavery.

Anonymous said...

When bitcoin becomes a threat to the power structure, they will merely criminalize its use.
Tax law will be the whip, and the IRS imposes draconian punishment for those who dont conform.

Anonymous said...

Bitcoin is the latest fad that will suck in and devour wealth. Think tulip mania. I'm staying with tried and proven wealth preservation over the centuries, silver bullion. Who knows, maybe Beanie Babies will make a comeback.

Daruka said...

So what happens when someone wants to cut the transatlantic fiber optic cables and cutting off internet? What happens if big power outage?

Anonymous said...

Anything that needs the Internet to survive is already doomed.....

Anonymous said...

Bitcoin- fully backed by nothing but the delusion that hiding transactions from the I.R.S. allows enough transparency to extend blind faith that it is not a ponzi scheme.

Dazza said...

Bit Coin Is NWO

Anonymous said...

You sound REALLY ignorant comparing bitcoin to tulips or a Ponzi scheme. What utility do tulips offer? Are they scarce? A Ponzi scheme is a scam to make money, bitcoin is a scheme to transfer money.

Anonymous said...

Anonymous at 9:46-

You're right. No government would ever stop money transfers for anything or ever interfere in online gambling, drug trafficing, child porn, or nascent technological advancements like 3d printing.

Anonymous said...

i am admittedly under informed on bitcoin. but a few things i would worry about; you have nothing in hand, correct? power outage, internet kill switch flipped by govt, or what if your account just disappears into cyberspace somewhere? and of course they say there is a limit to how many will ever be produced. how do we know how many they produce? at one time dollars were limited too, until they weren't. anything with a lot of value that can be produced is tempting to produce, and it seems bitcoin could be produced by a few computer key strokes, as far as i can tell. i agree the dollar is done, but i think i will stick to something i can actually hold, look at and carry with me.

Byrdman said...

The issue is the relative bitcoin value is out of whack because the currency markets are out of whack. It maybe the answer but until some reality enters the currency markets then it's just as much of an illusion as anything else.

westmc45 said...

think I will buy an OZ of gold for the price of a bit coin who by the way charges BS fees for trans actions just another nickel dime us in fees once again….. not much better than the banks charging fees and shit

Anonymous said...

Bitcoin is a fake, fraud, and a scam. You are stupid to hold bitcoins. Want coins, get something real like Maple Leafs or Austrian Viennas. Bitcoin is a fad, just like tulips used to be. It will crash and burn - smart people get out of bit-con now.

Anonymous said...

"they're a safer bet than dollars" - you are truly either stupid, delusional, or both.

Anonymous said...

When the economy collapses and the government declares martial law and uses the internet off switch, or there is an electromagnetic pulse that destroys most computerized devices, your imaginary bitcoins are going to go poof and disappear. You're going to say where are my bitcoins! and someone's going to say, what bitcoins?


It just doesn't feel right. Could it be forced into obscurity? At anytime!

Anonymous said...

Bitcoins enable the masses to give a collective middle finger salute to the tyrants who enslave us with the current monetary system. It may be taken out at some point, but until then you will see crypto currencies continue to increase in value exponentially. It might be a bubble, it might burst, its not a ponzi scheme and if you don't ride this wave, its your own ignorance or laziness you have to blame for missing the chance to be part of this money revolution. I see bitcoins going to a million $ and already some charting sites are measuring its value in milli bitcoins. So buy silver, buy gold, but don't complain when you miss out on the milli gains that only bitcoins and other Alt currencies currently offer.

Anonymous said...

The last comment makes bitcoin really sound like a tulip.
Better buy now because they will be worth a million DOLLARS and you will miss out.

Anonymous said...

people who casually say 'tulips' or 'ponzi' in refernece to Bitcoin without any real knowledge of either those things and especially bitcoin. You make me laugh. Comments like these will be a real good laugh in 2018.

Anonymous said...

What's more upsetting is the fact that so many good articles that should bring about mature responsible interactions and ideas are subject to childish name calling and emotional statements by immature posters.

You don't need an enemy... you have yourselves.

TAW Media said...

Two things are clear from these comments.

First is you folks don't know what a Ponzi scheme Or a bubble is our the difference between them. A Ponzi scheme is when something of little or no value is "invested" in and the interests on later investments are paid not in actual gains, but with the monies of later investors.
A bubble is when a commodities price expands far beyond its intrinsic value due to excessive futures trading or other speculation (see:greater fool theory).

Bitcoins are neither. They don't pay money back with money invested, in fact, you can earn them for free with a decent computer. It's a kin to going to the fair and trading your money for fair tickets except the tickets. Except there are lots of fairs. No Ponzi scheme there.
Second you don't understand how bitcoins work:The coins are based on an open sourced mathematical formula. There can only be some 21 million of them because there are a finite number of way to arrange the pieces of the equation. Now the coins can be divided, but as the supply is finite, the law of demand dictates the value directly.
There are numerous ways that the government can make sure they are not a viable replacement for cash monies. As said before, draconian penalties from the IRS would ensure your coins are only useful on Black and Grey markets such as the Silk Road as major businesses would back out. What good is money that is protected from manipulation of I can't buy fuel or food with it? Or pay my house note?
This opens another way government can crash the party. They can manipulate the value of the bitcoin by enacting and retracting such policies, thus dictating what they can be spent on.

There are holes in the argument, but Ponzi and bubble comments just prove the poster is ill equipped to expose them or be treated as a credible poster.

Anonymous said...

And for those who see that government could interfere- see China.

Anonymous said...

Controlled bythe same folks as Fed...just another way to set you up and drain your assets...

Anonymous said...

ponzi and bubble could both apply here i believe. people can exchange their bitcoins back for dollars, right? so speculation of buying them now and selling for more dollars later can lead to a bubble. a ponzi is taking peoples money and paying them back with money from other people, which basically happens in a bubble. in both cases last ones in are the losers. so it is you, poster a couple above here, who seems to not have a grasp on bubbles and ponzis. and you can say all you want about the "claims" about how there will only 21 million will EVER be produced. how do you know??? the dollar used to be backed by gold, until they decided not to. they print dollars and can do the same with bitcoins just as easily. and how much can you trust something you can't even physically have possession of???? maybe it will be ok, maybe it won't. but i don't think you should call someone an idiot for choosing not to take the chance.

Ed said...

Message to those of you who are afraid of the big bad boogie man that you call government. How effective was your boogie man against the underground railroad, marijuana, etc.?

Jack Black said...


Please donate BitCoin. Thank you very much.

Anonymous said...

Ignore the low-IQ'd peasants spewing forth asinine nonsense on a subject they have no clue about, i.e. bitcoin.

Whade said...

I like where Bitcoin is leading us, and I wish I had paid attention when I heard of them late summer 'o12. However do not go in without diligence!
Emotions, defiance, revenge or otherwise simply aren't enough to play with mine & my kids futures!
Be smart...and be sure to watch this super-interview very carefully:

Seen2013 said...

Frankly, I wasn't going to respond to this article, but I've been compelled to voice more than my 2 cents worth.

1). This article's basis is a false argument. In short, the destruction of the national currency does not neither destroy the Federal Reserve nor its central government.
The central bank will be charged with issuing and reviewing whatever currency happens to be the dominant legal tender regardless what that legal tender is unless abolished, and the government use that legal tender as it sees fit.
The train of though presented here and in the comments is Crypto-Currency cannot be legal tender, and the destruction of the currency is the destruction of not only the central bank but the central government's ability to pursue an authoritarian police state.

2). Bitcoin's rise although faster and in different appearance resembles the Greenback compared to its currency rivals as well as the world's reserve currency of that time the British Sterling. Can we say tried and true? Aside from word use, these points were largely valid for the Greenback earlier in its history too.

3). It should also be pointed out that many currencies are transferable into Bitcoin or other Crypto-Currencies; this is also known as a basket of currencies that is effectively named a Special Drawing Right by the IMF.

4). Cash Authoritarian Police State is not the objective goal; it is a Cashless Authoritarian Police State. It's not national; it's desired to be supranational.
A). 90% of all transactions are now cashless.
B). Cryptos are cashless.
C). UK's government and central bank would have required an agreement through the G8, and BIS, World Bank, and IMF backing to contemplate making Bitcoin redeemable in gold and thus legal tender.

Research earlier forms of Crypto currencies, you'll find that you're basing your hopes and prayers on a currency evolution rather than revolution.
Last time, I checked you can't protest a system by advocating for it.

Causal Observer said...

"Seen2013 said...

Frankly, I wasn't going to respond to this article, but I've been compelled to voice more than my 2 cents worth.

1). This article's basis is a false argument. In short, the destruction of the national currency does not neither destroy the Federal Reserve nor its central government.
The central bank will be charged with issuing and reviewing whatever currency happens to be the dominant legal tender regardless what that legal tender is unless abolished, and the government use that legal tender as it sees fit."

The banksters can issue their counterfeit candy wraps all they want as long as nobody uses them. Switching to the alternatives like bitcoin simply makes the banksters irrelevant .
There are gold sellers accepting bitcoin, does it make it redeemable enough?
And yes , bitcoin is a currency evolution, though it seems to be quickly developing into a revolution.
And yes again, advocating alternatives to the banksters' system is advocating against their system, what's not obvious about it?

Anonymous said...

The point is to take away the feds power and and sorry but the government even if it the most used currency in US/world will not be able to manipulate it or make more as there is only a limited number.. and its free, not interested based, but it is free so it can go up and down like a yoyo depending on demand, its not regulatored like our current system.. I stand up for freedom and bitcoins win hands down even though they could be more risk.. what ever currency is used its only real if we believe its real

Anonymous said...

max kieser tried to break jp morgan with backs bitcoin...its legit ...and i thought the price went skyrocket after the nsa proved they couldnt confiscate tthe funds of silk road traders

Seen2013 said...

Banksters or financial elite is only one aspect of the equation even though the financial and political elite are in most cases one and the same camp; however, they subscribe to the political philosophy of Bismarkianism. When you look at their documents and forums for their desired future, one should be able to acknowledge; their desired Utopia is our Dystopia through developing a Cashless Authoritarian Police State.

Lets say for argument that all paper currencies are debased into oblivion as the evidence of the national central bank's actions indicates, yet foreign policy seeks to sustain the mechanisms or otherwise control of the mechanisms necessary to establishing a replacement world's reserve currency.
In effect, the fact Crypto-Currencies are faring better than paper currency by any national central bank is irrelevant; in fact, it should be taken note Crypto-Currencies have risen after the death of the Liberty Dollar and rising above paper currencies in specifically named here the US Dollar in a not so removed parallel of that Greenback either.
It should be apparent that there's only two ways to create a cashless society; this can only be done by electronic transfer as a credit but with much of the populace living in increasing impoverishment; there's no need to force a bond of interest to acquire capital/wealth. It'll obviously be a unit of compensation of labor conducted by the laborer. The only other mechanism available at the moment is through internet currency. Both variations would be cashless currency enforced through legal tender laws that are thus centralized behind a central bank.
Considering, many readers should know that the Bismarkianists or otherwise Banksters and their supranationalist or otherwise Globalist interests rest upon progressing society into an Cashless Authoritarian Police State.
1). We should know that these central banks including the Federal Reserve is destroying the US Dollar's value. In fact, if you read some of their documents, it's being a tad too resistant to their liking.
2). Bitcoin and other Cyrpto-Currencies have come up on top and accelerated after alternatives like the Liberty Dollar were dealt with harshly. In fact, UK is contemplating making Bitcoin specifically redeemable in gold, which pegs it to the Gold and Silver Standard that leads to more confidence in Bitcoin particularly in relation to paper currencies who are desired to be destroyed. Recently, it was discussed that government's should get into bed with specifically Bitcoin. If one followed the documents, the G8 via the BIS, World Bank, WTO, IMF, and other supranationalist or otherwise known as Globalist institutions green-lighted it.
3). The next step and I'd wager would by and large be welcomed is making Crypto-Currencies legal tender. It's not really going to get a go to be redeemable in gold or otherwise government's getting into bed with it without legal tender legislation for it. What legal tender does is place Crypto-Currencies in this case specifically Bitcoin under the control of the nation's national bank who naturally to promote their cashless society like the Greenback before it pursue a 0% inflation policy.

After legal tender comes the official dissolution of paper currencies, they'll be replaced by cashless currency, and the most devastating piece of the Cashless Authoritarian Police State is set into place. In essence, if you truly want to give them a collective middle finger, I don't see aiding in the normalization of a cashless authoritarian police state does any such thing.

Anonymous said...

Bitcoin not backed by any durable precious metal real-estate land or resource, is just a new pyramidal speculative medium.

Mikerochdale said...

Bit coins have far more going for them then most currency at the moment look at Europe and the state of Greece. Owww and as always the its all the new world order or what if they turn the internet off. Get a grip people. And as for walking around post apocalypse pockets bulging with gold or silver coins.......... yeh good luck with that

Sopheaktra Heang said...

I really hope Bitcoin works. Just scared that governments will start to regulate!

Anonymous said...

"Bitcoin not backed by any durable precious metal real-estate land or resource, is just a new pyramidal speculative medium."

If so, what does that make the US dollar, (and other currencies) that are backed by DEBT. At least Bitcoin is not created on ever increasing debt. This is the major difference. Oh and one other thing...Ifyiu have the Fed Reserve you must have income tax to keep it going. With Bitcoin and other non debt- based currencies, tax is unecessary. It is no coincidnce that income tax was introduced into the US as soon as the Fed Reserve came into being. The US dollar is the big scam here...not the Bitcoin. If the Us dollar was backed by gold or silver, or cows or something, then it would be different, but it isnt.

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