Imagine, right now, in one instant the money
in your wallet, checking, or investment accounts
could purchase only one tenth or one hundredths
of what it could yesterday. How would your
life be affected? Could this even realistically
happen? Well, who is in control of your money
and how the US dollar works? Not you! Did
you decide in 2008 to help bail out large
failing banks? Probably not; but your government
did. Did you notice how prices rose for gas
and food after this? Our crisis was witnessed
by the world, by our creditors. Yet our government
borrowed more money. And the Federal Reserve
printed more dollars. All of these events
changed the value of each dollar you have.
At any moment another event could happen that
changes the value of these dollars more dramatically.
So how can you protect yourself? You may have
been told to store wealth in real estate or
gold and silver. These are good places to
store wealth, but you cannot buy groceries
or goods directly with these assets because
they aren’t currency. You can’t transfer
the value easily or efficiently for real world
transactions. There is a form of currency
that does not deal in dollars, and that is
actually inflation proof. It is the bankers’
worst fear.
“Why is gasoline so expensive?“
“Telling us which food brands are ready
for the uptick in cost”
“The United States has just lot its top
notch Triple A Credit Rating”
“Eighteen people have been charged in what
may be one of the nation’s largest credit
card fraud rings.”
“What some are calling fool’s gold, its
the virtual currency called-“
“It is a kind of holy grail of payments”
“We're asking whether or not this currency
has any longevity, let alone any legitimacy.”
“How can I hedge against inflation and other
government manipulation. One thing I did was
to buy bitcoins. What are they?”
“I don't really know that much about bitcoin.“
“Bitcoin is a purely online currency with
no intrinsic value. “
“It is digital currency which you can then
use to buy things online.”
“Bitcoin”
“Bitcoin”
“Bitcoin”
“Bitcoin”
“Bitcoin.”
“What is bitcoin?”
Bitcoin, first introduced in 2009 as a relatively
new technology in today's ever changing world.
Bitcoin is a digital currency, a revolutionary
tool that is changing people’s lives, as
did smart phones, ebay, YouTube (Oppa Gangnam
style!)
“Gangnam style!”
And even the internet itself
“You can communicate with people live anywhere
in the world by typing on the keyboard”
“You've got mail!”
The bitcoin network facilitates the instantaneous
transfer of value across any distance over
any borders to any place on earth. Specifically
it allows any person in any place with an
internet connection to receive and transfer
value. To send $8000 Western Union would charge
you $336. In contrast any value of bitcoin
can be transfered with a fee of no more than
2 cents at today's exchange rate. Besides
being able to transfer wealth instantly bitcoin
is highly valuable, because in its specially
designed software, the supply of currency
units, also called bitcoins, is increased
at a steady rate. New bitcoin creation will
only cease in the year 2140 with a total of
21,000,000 bitcoins. As of September 2013
there exists in circulation over 11,500,000,
over half the supply that will eventually
be mined. Mining bitcoins is the process by
which new bitcoins come in to existence. They
are created in blocks, and currently 25 bitcoins
are mined per block. Blocks are generated
about every 2 minutes as regulated by the
software code and the sent computer that mined
them. The best miner is the one with the most
computational power, but it is also based
on luck who wins the award. A rough estimate
would put the total number of bitcoin miners
at 100,000. This mining process is more specifically
known as hashing.
Future Money Trends: Alright Emmanuel, lets
start out with your website
Emmanuel Abiodun: Cloudhashing.com
When did you get the idea to create a hosted
mining cloud hashing service?
When my wife decided to throw all my computers
in the attic. I started off mining bitcoin
using computer, so I had a few computers sitting
around and running permanently, so the guests
could not come around and spend time just
because the room was super hot. Like they'll
get heat stroke. It was just costing a lot
of money for electricity. So I invested in
A6. Then upon my investment in A6 I had a
lot of friends who were interested. So at
that point I thought you know let me, they're
all computer illiterates let me manage this
for them. So upon that it kind of spiralled
in to a business. So we started in April of
this year and we've been selling what you
call bitcoin mining contracts ever since.
Did it bother you that we don’t know who
created it?
I first heard about in 2010. I didn’t think
it was a good idea because I just couldn't
see how it could take off in to the mainstream.
And lo and behold three years the value just
skyrocketed and I thought oh my goodness I
missed out on a golden opportunity on the
advent of something great here. I think the
very fact that I didn't know who created it
kind of raised a lot of questions. Realistically
that didn’t matter, the math itself and
the proof of work itself is a super secure
currency.
It may be hard to trust such a new strange
and exciting system like bitcoin. Some, mainly
computer technology enthusiasts, already see
bitcoin as more secure than email, online
trading, and your eTrade account.
Trace Mayer: So what made you trust bitcoin?
Well, that's a great question.
Do you use the internet?
I do
Do you trust it?
I pretty much have to.
You trust the internet, you don't necessarily
trust everyone on the internet?
No
Right, but you trust the internet. You go
in and type in on your browser and you get
walmart.com and you trust that's WalMart.
And there are legitimate actors on the internet
right like amazon.com. I'm sure you've bought
stuff there. Well bitcoin is very similar.
It is computer code that is a protocol.
Like email, people would otherwise not normally
assume anyone in this case can see, delete
or otherwise access their email account without
their permission or password. There is one
exception in that your email account can shut
down your account otherwise spy on you at
the NSA's request.
Why should people start taking a serious look
at it, who want to get off the governments
radar?
I think it's a very important thing. One thing
that we don't really fully appreciate is the
level of surveillance that we're under. And
now all of your transactions are being data
based, archived, stored, and their going to
be search-able forever. And you don't know
who's going to be in power in four years,
and eight years, and twenty years, and you
don't know what they're going to do with that
information. And why do they have that information
in the first place? Bitcoin allows you to
take control of that and have it not even
appear.
This brings us to the topic of centralization.
Bitcoin is decentralized, this means there
is no central authority that can stop any
bitcoin transaction and the same goes for
the bitcoin system as a whole. No one can
lock or freeze a bitcoin while they’re addressed,
like a bank account. No one can arbitrarily
create more bitcoins that the software program
was designed to make. No one can change the
software without the majority of the entire
network of users accepting a change. Programmers
of the bitcoin software are thus limited in
their scope of changes as to what the market
is driving.
Future Money Trends: Max Wright, he wrote
a book called Bitcoin Revolution. A lot of
people are fearful that the government is
going to attack it.
Max Wright: With regards to resisting government
violence, I think bitcoin is a really really
unique, to me its a unique currency in all
of history. It's never happened before. So
in the analogy that a lot of bitcoin advocates
use is in regards to Napster. We all know
Napster was a great file sharing um tool but
it was run out of a central server and a company.
There was a CEO to arrest, there was a company
to arrest. And the government can send in
men with guns and force them to unplug the
server. Service is over. Bitcoin, in the same
way bit torrent solved the problem for Napster,
it was decentralized, there was no one to
arrest, you'd have to put a police man in
every you know bedroom in every house in the
country on the planet to bring down bit-torrent,
so too with bitcoin. There is no one to arrest,
there is no CEO. It is a distributed peer
to peer network that authorizes and guarantees
the sanctity of the network. And so for that
reason it is incredibly resilient to violence,
and I find it very very interesting that at
a time when we're going to, my expectations,
we're going to go to a currency crisis and
currency wars like we've never seen before.
Future Money Trends: I'm here with Jim Rickards,
he's the author of Currency Wars. I'll just
throw it out there, bitcoin what are your
thoughts.
One of my least favourite topics because I'm
really sceptical of bitcoins. I've actually
read the technical papers, I've spoken to
a lot of people about it. It is cool technology,
there's good encryption, the block chain method
of validating, the fact that it's decentralized
and dispersed. You can fire a drone missile
at a bit coin server and it doesn't matter
because there's another one over here. So
I understand all that and it's cool stuff
and it does attract libertarians and it does
attract technophiles.
Now that you know what bitcoin is, you should
recognize how digital currency is a threat
to the current banking system and institutions.
In 2008 bankers profited from the very financial
crisis they created. Imagine you had the opportunity
to not participate in a government monopolized
currency system. Bitcoin can be your way out
of the corruption. Banks will hate it but
they cant stop it. Bitcoin can be the solution
to a multitude of problems. Firstly, inflation.
Our current money supply currently grows because
it is based on debt and continual government
overspend. US money supply has actually multiplied
over 10,000 times over the past 200 years.
This explains why purchasing power has significantly
lowered, why a coat in 1959 costs a nickel
and is now about 20 times that. The supply
of Bitcoin only increases at a specific rate
that will never change, this means that it
is inflation proof. This also prevents thefts.
If you hold cash not only would you worry
about someone stealing your wallet, but the
government has been known to confiscate cash
at airports and also at police stops.
“He had an encounter at the TSA, otherwise
known as the transportation safety administration,
in which they not only wanted to know who
he was, who did he work for, how did he get
the money he had on him, and what did he plan
to do with that money.”
“$4700, why do you have all this money?”
Back in 2012, Mischa's friends, were driving
her cash across country when Nebraska state
troopers booked them for speeding. Officers
then got permission to search the car. In
the back they found two bags filled with cash,
and then arrested the Dairy's believing the
money was ill gotten.”
You cannot steal bitcoin in a bitcoin wallet
without knowing someone’s password. You
can copy and store your wallet in an unlimited
number of locations with internet access,
just like email. With bitcoin it is much easier
to move your money as we noted earlier. It’s
also easier to keep your transaction private
should you want to remain anonymous from your
peers or even the government. Your name is
not connected to your bitcoin address unless
you choose to through a 3rd party service
that uses bitcoin. That government would need
to know and control the entire internet to
track or stop bitcoin payments. Lastly, a
great benefit for bitcoin is the ease of starting
your own business. You can set up a bitcoin
address to receive money or products or services
within seconds, versus trying to comply with
all your countries regulations, creating a
bank account, etc. You also don’t have to
worry about fraudulent payments, because bitcoin
transactions are irreversible. Your business
would not have to pay large fees to credit
card companies either. A customer can simply
use a cellphone app to send payments to you
if your business has a storefront, like a
bar or a restaurant. Bitcoin is already accepted
on many online websites for products and services
including freelance work, donations to organizations,
pizza shops, auctions, electronics, web hosting,
domain registration, bio storage, music, clothing,
graphic design, and even some massive retail
outlets like bitcoinstore.com
Future Money Trends: Alright I'm going to
go to bitcoin store, I'm going to purchase
a laptop, and I want to show you guys just
how easy this is to do. You're going to have
a lot of items on here but we're going to
pick a laptop because that's what we need.
You can see that you have a lot of different
things you can buy, digital camera, desktop
PC, web cams, all kinds of stuff you can also
search for. But we're looking for a new laptop.
And you can see that this is just like any
other store that would accept US dollars.
You've got this notebook here, you can add
to cart. Here's the cart, proceed to checkout,
just like if you went to best buy. You can
register or you can check out as a guest,
I'm going to check out as a guest today. The
next step is to input your information, we'll
simply input our information. Our next step
is our shipping method. Put payment method
is going to be bitcoin. Place order. Ok, so
we would just scan this with our phone, or
we would use new address to pay it, and once
you do that you can put that in your bitcoin
wallet and the transaction is complete. Today
is September 22nd and we'll see how fast they
ship it out. It's only been two days and there's
free shipping. We ordered it on the 22nd of
September and we received it on the 24th.
So you've got all your accessories, brand
new, same price as amazon, I didnt pay anything
extra for it. That was easy, let’s see what
else I can do with bitcoin. Alright, so I'm
on Bitmint.net and I'm going to sell my old
TV. A lot of my friends were giving me crap
so I ended up getting this new TV. I've had
this TV for gosh, 10 years now, its a 62 inch.
Sweetheart! Some Africans from Ghanna want
to buy our TV with bitcoin!
Over 1000 people attended the bitcoin conference
in San Jose in May 2013. The bitcoin forum
has over 100,000 members discussing bitcoin.
Payment process or bitpay currently has 1000s
of merchants using our services to accept
bitcoin payments on their websites. As of
September 2013 the value of bitcoins created
has reach $1,500,000,000 as determined by
the free market. Bitcoin seems to be growing
at a rapid rate, maybe even outpacing the
government's ability to regulate it. When
the financial crimes enforcement network of
the department of the US treasury announced
that virtual currencies are subject to the
same rules as other currencies, the price
didn't crash. In fact it went up from there,
as if attempts to regulate bitcoin don’t
matter.
James Rickards: This idea that somehow you're
escaping government scrutiny or that you’re
outside the government matrix or whatever
is just not true. Mal Cox was attacked by
the government of course there's Silk Road
now arrested in May, so the government, the
governments watching everything you do.
Dave Scotese: There was a lot of exchange
popping up, and they started getting hammered,
and I mean with all the laws and banks closing
their accounts and stuff like that. And that
made it difficult, but then in comes local
bitcoins. They let people, individuals, advertise
whether they want to buy or sell, and those
individuals hook up with each other, and that
makes bitcoin a lot easier. Buying bitcoins
is getting easier, selling it I guess is getting
easier too.
G. Edward Griffin: There's no reason in the
world that a privately issued currency couldn't
be issued and served maybe even better because
it's totally, then its totally beyond the
temptation of politicians to start meddling
with the rules. It's beyond the reach of political
temptation.
Now picture a world where you're in control
of your money. Where you're free to spend
any amount, small or large, anywhere in the
world and your identity is safe. Your money
can not be diluted by government creating
it out of nothing and giving it away to banks,
special interests, towards wars, or in foreign
aid. You can help stop selfish banking interests,
you can shape your destiny. And we don't even
have to end the current system, we just merely
need to bypass it.
Future Money Trends: Thank you for watching
our video. Go to our website at banksworstfear.com
to receive your free report on how you can
start opting out of the current monetary system.
You'll also receive full guest interviews,
as well as exclusive analysis from future
money trends. Close enough.
