Bitcoin Goes Parabolic: Updated Thoughts

Submitted by Michael Krieger of Liberty BlitzKrieg 

So Bitcoin has finally dipped its electronic toe into the fringes of mainstream consciousness. The results have been, to put it mildly, explosive, divisive and highly emotional.  I can see why.

As I write this, there are about 10.9 million Bitcoins in existence, putting the entire market at around $775 million.  To put this into perspective, even after this parabolic move, Ben Bernanke still prints into existence an average of four new Bitcoin markets every single day.

Supporters of Bitcoin should not only expect an attack from “the state”, we should embrace it.  Just think about how ridiculous the government will look if they attack Bitcoin.  I mean, these guys can’t put a single banker in jail, but when citizens decide to freely exchange goods using a currency of their choice that is where they draw the line!  Bitcoin’s purpose is to both show us the way forward and to make the authorities look foolish as they spastically and irrationally respond to it.  I suspect it will be highly successful in accomplishing both objectives.

Read the entire article here.

24 comments on “Bitcoin Goes Parabolic: Updated Thoughts
  1. Daniel S says:

    I agree with Mr. Krieger. When I saw someone post about how the gov’t would attack bitcoins the purchase and destruction of bibles that made bible printing highly profitable came to mind as well as the pope’s ban on crossbows.

    Fiat currencies are backed by threats of violence, fear of that violence, and monetary ignorance. Bitcoin is backed by a spirit of generosity mixed with greed, a hunger for freedom, and consenting participation. Importantly bitcoin wears its currency status on its sleeve and has gained steady increases in acceptance (shown by price and participation) despite this.

    Fascists, those who don’t understand bitcoin, and the afraid, are on the wrong side of a turning point here. Kickstarter is part of the same turning point. Monopolies are so expensive. People yearn for freedom. They’re bypassing them.

  2. Jo says:

    The problem with bitcoins will be two fold. Fist, all access to bitcoins will be prohibited and anyone creating them will be jailed indefinately. Second in order to buy a bitcoin you need to have a value to bigin with ie. a currency; this keeps governments in control if they are the ones creating currencies that are used to buy the bitcoins to bigin with. It’s a snake eating it’s own tail.

  3. Robespierre says:

    The problem with bitcoin is that is dépends on the internet and computers. Non Merci. No Thanks. Just bought real nice 100 ounces of silver today. Love the shine. Oh by the way ? How much bitcoins did the russian central bank or the chinese central bought today ? Just kidding of course. I intend next week to buy a superd bag of 50 cents and 10 cents in PHYSICAL SILVER. Enjoy the bubble while it last. I am not a bitcoin ”hater” like you say. I just hate depending on a f*ckin computer for my money.

  4. fonestar says:

    The amount of stupid comments by tecnophobes and the genrally clueless make me all the more bullish on BTC.

    It takes me back to the 80′s and 90′s….

    “Who would want a computer in their house? Do you want a nuclear warhead too?”

  5. Sirial says:

    What if central banks start fucking with bitcoin by putting a couple of billion fiat in bitcoin and then taking it out again causing insane volatility? Are there safeguards for that kind of skullduggery in bitcoin ? Just curious.

  6. microhousehold says:

    Bitcoin main use is for transactions I guess, not as a store of wealth.
    Totally agree with Krieger.

  7. Knox says:

    New video by Ill Bill and DJ Premier…Everytime Bill says “World Premier” they show the Bitcoin logo. http://www.youtube.com/watch?v=BLwbaqpNjqo

    In the meantime, I’m taking donations!
    17Wjyg4U6XLF1UjBSYrUxUydU8WJDGBvNk

  8. Daniel S says:

    @Jo – one of the first bitcoin transactions was for pizza, not another currency.

  9. rawpower says:

    @Sirial, I was wondering the same thing.
    What’s to stop Wall Street speculators from throwing fiat into BTC, driving the price upto say $1,000,000 then withdrawing and collapsing BTC’s price to near zero. Early investors would be happy but ordinary people buying in near the top would be wiped out and everyone would lose all confidence in virtual currencies forever.

  10. If you want to end the state – which is funded and run from taxation – then by being a keyboard warrior and switching to bitcoin, you can help bring about an unstoppable global revolution.

  11. Noel says:

    so if for some reason you loose your vitual wallet and your coins are gone forever(thats what I was reading about bitcoins) can someone remine them???

  12. mijj says:

    @Noel > so if for some reason you loose your vitual wallet and your coins are gone forever(thats what I was reading about bitcoins) can someone remine them???

    the coins exist, even though you may not have access to them. Any Bitcoins that are in the system won’t be re-mined.

    /guess cloaked in reason

  13. mijj says:

    mijj > Any Bitcoins that are in the system won’t be re-mined.

    oops! .. misleading .. to be a Bitcoin is to be in the Bitcoin system. It’s not like they can be pulled out of the system after they’re mined.

    A Bitcoin, once it exists, will always exist. Even though it may be out of reach for whatever reason.

  14. mijj says:

    maybe the government can scupper Bitcoin by buying all the Bitcoins and throwing away the wallet.

  15. bill says:

    Yeah well I thought they were going to look ridiculous when they went after Baron vonNutthouse for saying his Liberty dollars were counterfeit but they got him anyway and now Baron vonNutthouse is looking at the big house. I still think they can stop it. All they have to do is say Osama Bin Laden is using it to transfer money and they will be able to do whatever they want. They can already throw us in the can for no reason if they feel like it.

    All they have to do is say “this is illegal” and I’ll bet that would kill it. IMO

  16. OlympiaLogger says:

    Here hotshots…er…I mean Rag Pickers.
    Let’s see fast you can clear out you accounts and pay off you houses!!!

    Hahaha…^n®

    ———–
    “Just received a call from a highly agitated bank manager who stated that within 60 days, banks will be greatly reducing their hours, days of operation, amount of withdrawals and a requirement to fill out “paperwork” if the amount is questioned by bank officials. Unless the form is completed, money will not be disbursed. What really irritated this manager is that after hearing our statements on the air, and receiving years of assurance that our positions and contacts were so much bravo sierra, now he hears from corporate people that it is apparently true after all. He said, “screw them, grab the money while you can.” The parameters given were banks open two days a week for four to five hours with below minimum staffs, increased security and greatly reduced amounts of actual cash in the vault. Amount of withdrawal will be held to $500-2000 per day per customer account–not customer. So my account could only have either my wife or I withdraw, not both. That level could change at ANY time. There is no plan (at least known) for automatic confiscation from accounts–yet, and he said that the banks hold the “ownership” authority and final disposition of any items found in safety deposit boxes. (surprise, surprise!) Withholding mortgage payments could result in expedited (30) day foreclosures and 15 day Sheriff’s locks on your front door.
    The Federal Reserve could and will initiate other more draconian restrictions on all aspects of “private” banking and access to any property held by banks. It could include forfeiture of your primary (paid for) residence if your summer cottage has a mortgage and you fail to pony up to keeping it current or any forthcoming restrictions on your accounts.
    Clearly, the only option is to close accounts or only keep funds that can be paid instantly to keep electric, water, or other critical accounts paid. Cash will be drying up—so, unless people hold precious metals, bullets (the new currency) or medicines, etc., you are screwed. Barter will be king. As the Colonel said yesterday, “the universe is contracting into the black hole. There is no way to escape its pull.” (Political/economic/social order black hole) Received at 1545 hours”
    20 March 2013
    — The Lawman

  17. Kyle says:

    NEXT Thing you know is turn in People that are using BITCOINS BEN Bernanke is coming for bitcoin users..The WSJ reports that, “the U.S. is applying money-laundering rules to “virtual currencies,” amid growing concern that new forms of cash bought on the Internet are being used to fund illicit activities. ..this just in Drones seeking people using Bitcoins.

  18. I concur with Thorsten Polleit. “Money IS being re-invented!”

    Bitcoins are at the the vanguard of a much larger movement. First pancakes tend to stick to the pan, Bitcoin made a few mistakes in the early days. it’s possible they might make a few more in the future! It’s a learning curve!

    When the horseless carriage was first invented, with a steam engine on wheels. It had a tiller, like a boat, and was steered from the stern! Trial and error soon developed the concept into a practical alternative to horse drawn transportation. A memorable legacy is the fact that we still rate engines in horsepower!

    I also believe that as cyber-currency develops, meaningless computational hash algorithms will evolve into extremely useful scientific processing, solving real world engineering and biological/medicinal problems. The “Foldit” game has made great contributions:- http://en.wikipedia.org/wiki/Foldit

    In 2011, players of Foldit helped to decipher the crystal structure of the Mason-Pfizer monkey virus (M-PMV) retroviral protease, an AIDS-causing monkey virus. While the puzzle was available to play for a period of three weeks, players produced an accurate 3D model of the enzyme in just ten days. The problem of how to configure the structure of the enzyme had stumped scientists for 15 years.[6][7]
    On January, 2012, Scientific American reported that the Foldit gamers achieved the first crowdsourced redesign of a protein.[5] The protein is an enzyme which catalyses the Diels-Alder reactions widely used in synthetic chemistry. A team including David Baker in the Center for Game Science at University of Washington in Seattle computationally designed this enzyme from scratch but found the potency needing improvement. The Foldit players reengineered the enzyme by adding 13 amino acids and increased its activity by more than 18 times.[5][8]

    Crowd Sourcing of Computer Processing Power, is still in it’s infancy! Gold may be valuable, but the Cyber-Currency of the future may simultaneously be saving life!… How valuable is that?

    Quote:- “Money is being re-invented,” (Thorsten Polleit, chief economist at Degussa Bank.)

  19. Erik says:

    http://maxkeiser.com/2013/03/21/Bitcoin-goes-parabolic-updated-thoughts/

    Robespierre, hey, it makes sense to buy gold and silver. I’m sure almost all Keiser readers and Bitcoin users have done so.

    Don’t forget that buying gold & silver as protection is and has been constantly attacked in the MSM for the dozen years of their ever-increasing price. Jim Sinclair, with his extraordinary market understand and experience–like Max except two more decades of experience going back to the last gold bull market and financial crisis–is still constantly attacked regardless of his successful insight and predictions. He was ridiculed for predicting 10 years in advance that gold would go to $1,650 by January 2011–he was only 6 months off. And now Max is being ridiculed and accused of a pump-and-dump. That’s what happens to truth-tellers.

    The TPTB hate anyone or anything that in any way gets people outside the system. I think what is important is that beginning at least 5 years ago Sinclair told his readers that the very forces attacking gold and driving the price down would, in the end, be the ones holding the gold when it made its last big ascent.

    He also said that gold was moving toward the system and not away BUT there would not be a return to the gold standard. After the current system collapses the new one will be built in this way: “my conclusion is that gold will not be convertible in the new system, but will be lightly tied to a Western world M3 by a loose agreement that sets values according to gold held by treasuries as goals to be adopted but voluntarily accomplished.”

    But that was before Cyprus. Now, nothing TPTB say or do will be trusted. When “they” construct a post-crash system they will NEED to include Bitcoin in some way as its independence will be the only thing that lends legitimacy and trust. And the new system has got to be essentially electronic–there is no way that commerce anymore can be carried out on a barter or gold/silver/paper cash basis. Bitcoin along with gold will help provide a benchmark for the value of fiat currencies and, as with gold, provide the background trust to the new valuations.

    Just as gold and silver have been under constant attack as a legitimate store of value–which to us, but not most people, seems totally ridiculous–so is Bitcoin under attack. TPTB have done all they could to avoid a stampede into gold and silver–but now thanks to Cyprus it is nonetheless happening. And who were net buyers of gold these last 4 years? Central Banks, the supposed enemies of gold.

    Gold and monetary power are moving from west to east. The western financial powers may attack Bitcoin but the west is losing exclusive control of the global monetary system. For Russia and the East Bitcoin will be welcomed as a useful, honest, non-IMF, non-U.S.-controlled means of international exchange.

    Those attacking Bitcoin are no longer in exclusive control of the system. The western financial powers attempts at total control are backfiring. Cyprus is the perfect example: Instead of bringing them more control it has brought less. The U.S. had Iran cut out of the SWIFT bank-clearing system—another huge mistake. Iran turned to settlement in gold, weakening the western-controlled SWIFT.

    Another huge—if not THE major mistake of the U.S.: using its printed money to surround Russia and China militarily. The six-nation Shanghai Cooperation Organization (SCO) met in 2009 in Yekaterinburg, Russia, to plan their liberation from the U.S. Dollar tyranny. The U.S was explicitly not invited. Russia and China and the other countries involved realized that they were the financiers for U.S. hegemony and decided enough was enough. That was the beginning of the end for western control. Michael Hudson writes about this watershed event:
    http://www.counterpunch.org/2009/06/15/the-ending-of-america-s-financial-military-empire/

    The entire article is a must-read. These two paragraphs are key regarding Bitcoin:

    “When China and other countries recycle their dollar inflows by buying US Treasury bills to “invest” in the United States, this buildup is not really voluntary. It does not reflect faith in the ability of the U.S. economy to enrich foreign central banks for their savings. Nor does it represent any calculated investment preference. It is simply a matter of a lack of alternatives. U.S.-style “free markets” hook countries into a system that forces them to accept dollars without limit. Now they want out.

    “This means creating a new alternative. Rather than making merely “cosmetic changes as some countries and perhaps the international financial organisations themselves might want,” said Mr. Medvedev at the end of his St. Petersburg speech, “what we need are financial institutions of a completely new type, where particular political issues and motives, and particular countries will not dominate.” ”

    Hmmm….sounds just like…Bitcoin!

    The west can huff and puff about Bitcoin but Bitcoin is here to stay.

  20. This page certainly has all the information and facts I wanted concerning this subject
    and didn’t know who to ask.

  21. Adrian says:

    Learn how to create a secure Brainwallet and store Bitcoins in your head.
    http://bitaddress.org

  22. oneguy says:

    Sorry to burst any bubbles but there is a very large misconception regarding bitcoin anonymity. It would seem that bitcoin is actually not that anonymous nor is anonymity actually built in to the code. (and to my knowledge the code is some kinda genius spaghetti code). Bitcoin is advanced by a group of developers that do it for free. My suggestion is just an echo of one that has already been made on bitcoin talk threads.

    Bitcoin community needs a bounty for a developer(s) in order to facilitate anonymity in the code. Otherwise the developers who don’t necessarily have incentive to do it won’t do it as fast or at all. (on a side note one of the most public of devs is Gavin Anderson, who as rumor goes whether reluctantly or not has been approached by the cia to explain the bitcoin network model and keep them updated)

    (copy and pasted)http://bitcoin.stackexchange.com/questions/193/how-do-i-see-the-ip-address-of-a-bitcoin-transaction
    Gavin Andreson indeed notes that
    “Unless you are very careful in the way you use Bitcoin (and you have the technical know-how to use it with other anonymizing technologies like Tor or i2p), you should assume that a persistent, motivated attacker will be able to associate your IP address with your bitcoin transactions.”
    One way to do this is to simply run bitcoin peer-to-peer clients that connect to a large fraction of the active nodes. It’s not as hard as you might think. See Dan Kaminsky’s Black Hat 2011 talk, starting at slide 21, for more. (Thanks to kirian for reminding me of the link). Then see An Analysis of Anonymity in the Bitcoin System 2011-07-22 by Fergal Reid, Martin Harrigan for how to link together the various bitcoin addresses that each user uses. http://arxiv.org/pdf/1107.4524.pdf

    This is one suggestion from a smart person for making the code more anonymous.
    http://wbl.github.com/bitcoinanon.pdf

    But don’t take my word for it research, research, research…..

  23. KingOfTheNorthernHemisphere says:

    “MONEY LAUNDERING”

    Bwahaha…^n®

    Got DIRT?

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