Sunday, April 14, 2013

Bitcoins: Digital Gold for the Digital Age / By Justin Dove, Investment U Executive Editor / Friday, April 12, 2013

It’s happening all around you, at this very second, and you probably haven’t even noticed.

Right now, on the same networks that carry your internet data, people are exchanging goods and services – completely off the grid. Out of the reach of the tax man, the Fed, or any other government regulation.

You see, there are two types of web…

The Surface Web is what you and I are used to. It’s the part of the World Wide Web that’s indexed by search engines like Google.

The second goes by many names, but we’ll just call it the Dark Web.

And just like eBay (Nasdaq: EBAY) and Amazon (Nasdaq: AMZN) have created thriving online marketplaces on the Surface Web, there also exists thriving black markets on the Dark Web.

So what makes these underground markets possible?


Credit cards leave a paper trail, and sending cash through the mail is too risky. So Bitcoin evolved as the solution to this problem – a completely anonymous, decentralized currency to facilitate the online version of the black market. But now, it’s becoming something much greater than a black-market currency…

As Jeffrey Tucker explains below, it’s an ingenious solution to a free-market problem.

So in other words, the government hates it.

And unlike fiat currency, there’s no chance of inflation ever becoming a problem, as there will never be more than 21 billion bitcoins . (Because each “coin” can be broken into millions of smaller pieces, scalability shouldn’t be a concern either.)

So in other words, The Fed hates it, too.

Which is precisely why we love it…

A Currency Based on Libertarian Values
Sure, there will be wild swings of volatility for such a brand new concept…

- Read more here:

No comments:

Post a Comment