An increase in the value of bitcoin, the world’s largest online currency, may fuel concerns that virtual money could undermine the role of central banks.

For a primer on all things Bitcoin, of course, you will have had to watch Keiser Report, the ONLY international financial news programme to have covered it:

9 comments on “An increase in the value of bitcoin, the world’s largest online currency, may fuel concerns that virtual money could undermine the role of central banks.
  1. Banking Thiefs says:

    Bitcoin has doubled in value simply because supply has been halved artificially.

    Who exactly decides that the reward for solving the hash is worth 50% less bitcoins this year than last year?

    To me it seems like some companies talking pre-orders for Bitcoin generating devices are little more than arbitrage scams (because they know ahead of time that bitcoins will be harder to generate!)

  2. Banking Thiefs says:

    Halving the reward for solving the hash block = doubling of the electricity cost to generate a Bitcoin.

    The recent doubling in price is not related to rising against dollar value.

  3. Internet serfer says:

    The supply is halved as a predetermined number of Bitcoins is reached. This maintains the value of the currency, unlike how fiat is constantly devalued by endless printing.

    I have also read that with the decrease in reward rate for solving the block, the difficulty in said task is also reduced.

  4. Banking Thiefs says:

    For people who don’t know how an arbitrage scam works here it is..

    You take $1,ooo,ooo in pre-orders for a UBGD (unicorn Bitcoin generating device).
    You spend the money buying Bitcoins because you know when reward halving will take place that will double the effort to create a Bitcoin.
    Bitcoin price jumps from $10 to $16.
    You announce the UBGD project has been canceled and return customers their $1,000,000
    They are happy to get a refund in full.
    You pocket the $600,000 profit.
    Nobody even realizes they got scammed/gave you an interest free loan.

  5. Banking Thiefs says:

    “The supply is halved as a predetermined number of Bitcoins is reached.”

    Why would I mine an ounce of gold, give it to you, and have you reward me half an ounce back?

    It’s a very odd, but it will ensure the cost to produce one rises!

    Rarity is not true either. There is nothing to stop someone making another crypto currency http://litecoin.org/

  6. narydu says:

    Funny haw someones just invent wrong ideas! 1) Halvin didn’t doubled the price in any way. About 3600 btc are produced per day and about 36000 move between hands. The halvind had almost no effect. 2) The difficulty has nothing to do qith halving/payouts but with the ammount of attemps done by seccond. Actually Asics wil rise difficulty over a 200%. 3) The arbitrage scam is nonsense if you hace to pay back in BTCs not in usd.

  7. Banking Thiefs says:

    “The arbitrage scam is nonsense if you hace to pay back in BTCs not in usd.”

    They don’t, they pay back in dollars, or tell you there will be a delay in getting BTC for you. Only legal tender fiat is recognized in contract disputes by the law. But you could use the arbitrage profit to buy FPGAs and generate the BTC back, given time. ;D

  8. Central Bank Shill says:

    “The supply is halved as a predetermined number of Bitcoins is reached.”

    Why would I mine an ounce of gold, give it to you, and have you reward me half an ounce back?

    It’s a very odd, but it will ensure the cost to produce one rises!

    Rarity is not true either. There is nothing to stop someone making another crypto currency http://litecoin.org/

Access The Max Keiser Podcast
Weekly Downloads, live Q & A Session and exclusive video posts from Max and Stacy

Subscribe Learn More
Buy Gold Online
Watch the latest Keiser Reports:

Watch our Google Hangouts: