Tuesday, April 30, 2013

This is Huge: Mike Maloney On Bitcoin & Future Of Monetary System

In this video, Mike Maloney explains Bitcoin and what his thoughts are on the concept. Coming soon: An in-depth discussion on Bitcoin with Chris Martenson. Get the latest breaking news and more videos by signing up to GoldSilver.com's free weekly newsletter: http://goldsilver.com/join-our-newsletter/

Mike hits on all of the big points:

· Bitcoin is an experiment; Mike is for whatever the free market picks. If it turns out to be an honest system, Bitcoin could act as the world’s payment system.

· Mike wonders if the computer code underlying the Bitcoin system is vulnerable to being compromised.

· Government/central bank deposit grab in Cyprus is an attack on depositors’ purchasing power, just as printing paper currency is. Like gold, Bitcoin seeks to nullify this kind of abuse, as Bitcoins, like gold, are limited in supply.

The Cyprus deposit-grab motivated people to buy Bitcoins. Prices of the online currency shot up above $60, Mike notes, as Europeans traded out from under the control of current currencies. When we deposit funds in a bank, we are creditors to that bank, yet few of us deposit funds in the expectation of suffering overnight losses.

Mike’s point is that overnight losses are happening every day; they’re just small, incremental losses and thus go virtually unnoticed by most of us.

If prices rise 3% annually over 10 years, “that’s 34% that they stole from your purchasing power, and they do this continuously, but very, very slowly, so that we’re the frog in the pot that eventually boils,” Mike explains. - Read more here

Mike Maloney On Bitcoin & Future Of Monetary System

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