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April 3, 2013 - Clif High
57:47
20130403 – Clif High Audio #33
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Good morning, it's uh 845 AM on April 3rd, 2013 from again another chemtrailed up day here in the Pacific Northwest.
Uh this is yet another damn uh woo.
This time we're gonna do a Bitcoin breakdown, I'll try and stay on subject.
The goal is to uh provide you with a context for Bitcoin, basically sort of a primer as to how it all works and how you can get involved and uh some of the um uh aspects of it that uh need to be sort of linked together in your head to make it all make sense.
It's a very complicated uh technical approach to money, so we'll get into it real quick here.
Uh so uh making some tea and feeding the um hummingbirds uh gotta keep two feeders going because the we have two different kinds of hummers.
We have um Rufus and Anna's, uh one of them over winters, I think the Rufus, uh they've been with us all winter.
But anyway, and they're a bit territorial, so you have to have two feeders out there, otherwise they spend all their time chasing each other away from the feeder and nobody gets it any chow.
It's uh it's amusing to watch, but uh but it's not really progress.
Anyway, um so uh Bitcoin uh as a context, okay?
Uh Bitcoin is to banking and currency what the Internet uh is to information.
So the internet allows for information to be liberated, if you will, and it allows for a unique level of uh information delivery that didn't exist before it.
All other forms, books, etc.
etc.
could be considered to be information delivery prior to the internet, but the internet provided this thing that didn't exist, and that was this human-to-human interaction, such that I could literally sit here in the Pacific Northwest and be connected to and received information directly from another human in Alaska, Russia, Africa, Antarctica, any place on the planet, and even potentially out in space.
So this human-to-human characteristic of information didn't exist prior to the internet, um, without all kinds of intermediaries.
So the whole intermediary of information, all that structure fell away when the internet came into existence.
Even though the government is now thirteen, fourteen years on to mass adoption of the internet is now trying to in all the different countries um trying to clamp down and control it and undoubtedly is influencing it and so on.
Nonetheless, the internet allows still uh it's its function of allowing human-to-human contact supersedes and trumps all uh officialdom use of the media.
And it is in essence bringing the officialdom to their knees because it allows free-flowing information and the validation of that information, as well as uh s uh skepticism and rebuttal on a uh a real-time and near real time basis that didn't exist prior to it.
So Bitcoin is to the bankster occupation, the um incredible bankster occupus that uh i is trying to force a central bank on every country of the planet and force central banksterism down on everybody's throat.
Bitcoin is to that structure as the internet was to the uh control of the media.
So Bitcoin will cause the the banking and currency structure to go away.
Bitcoin as a context is the situation that uh Buckminster Fuller described in the uh sixties and seventies where he said systems are becoming so complex we cannot have a revolution.
What we have to do is to have a reinvention, and that the way that you alter your future is not through violent revolution and and so on, but rather through inventing the system that will replace the one that's annoying you.
So here we have a system where the uh banster intermediaries, the uh criminal gang that supports the criminal gang at the top of the pyramid.
By that I mean officialdom, all the politicians and the basic e basic um evil bastards that run government at all uh and all the institutions are supported and con and um uh basically financed by the bankster layer.
The bankster layer is uh eroding.
So uh the erosion of it is uh occurring at a level of um uh uh uh noticeability, let's put it that way and we're starting to see it erode in a number of different places the uh erosion is um uh coming as a result of the um exposure of the hyperinflation through bitcoin now the reason that bitcoin can expose hyperinflation goes to the fact that it is this human to human communication form really uh because uh rather than
a currency per se uh there's all these different kinds of attributes that should be behind currencies and everybody says well it's got to be backed by something and every in all currencies whether it's gold, silver, lead, uh force,
um uh currency of seduction, um and the currencies of paper and any other form of currency that interacts between humans ultimately comes down to a single attribute and that is confidence.
So if you have confidence in the paper that uh the Chinese give you in the 600 AD then it becomes currency.
If you don't it is not uh if you have confidence in the slaves then they're currency uh if you if you have confidence in your ability to turn them around as a profit and so on.
If you have confidence in any media then it becomes the current through which your energy is transferred to another human and that is the whole point of currency is this human to human uh transaction.
The point of currency is not for me to give a big portion of my life's work and blood to the banks in the form of fees although that is their understanding of it and that is the warped understanding that they've forced on humanity these past uh let's say 70, 80 years with real vigor and prior to that uh they'd worked at it getting it all set up.
So the point of currency is this exchange between two humans.
Bitcoin allows this this human to human exchange without the blood sucking parasites of the bank as an intermediary.
It allows it to be done in a secure fashion yes I acknowledge there have been raids against Bitcoin wallets and so on and that does not diminish the Bitcoin concept itself merely the implementation of the software that was being used in those particular instances at the time.
And unlike the banking system every act against a Bitcoin system strengthens the system as a whole because we're all a bunch of paranoid fucks and so we start upgrading our software when we find there's a level of vulnerability plus um well I'll get into that when we get into the Bitcoin mining.
Okay so uh Bitcoin is a human-to-human uh information exchange and and that information in this case brings along with it some notion of wealth that is in going at in the future to be translated into a different uh form uh than the Bitcoin in the local environment.
So no people my point in getting into Bitcoins and describing them all this time has never been that the Bitcoin itself was a um uh anything other than the media for getting uh wealth to be transferred in some form from human to human and allowing a trade level without the parasitic action of the Zionistic banking structure in between.
And that sort of gives you the context here.
Bitcoin is a software implementation that is, in a sense, the description of Bitcoin could be aptly said to be a tunnel or a vehicle that allows you to, as an individual, to tunnel into a secure network and to exchange information about wealth with another individual anywhere on the planet and to do so in a secure fashion without the intervention of any prying
eyes, as well as without any blood-sucking parasitic banksterism involved.
Now, note that banksters are terrible because they concentrate wealth into the parasite.
They're terrible because they must destroy hundreds of millions of humans periodically in order to maintain their control system through what they call global warfare.
And they're terrible because they continuously oppress the populace of the planet into, destroy humanity's creativity by the uh needless depressions that they engineer uh because of their form of currency and because they're bleeding off um uh energy and and money and everything with all their fees and uh manipulation And inflation, etc.
Now see, there's something else.
There is no inflation within Bitcoin because the number is finite.
It is not a Ponzi scheme.
By definition, a Ponzi scheme is a scheme in which you take money from one unsuspecting fool, give a bunch of it to yourself, and use a little bit to pay the previous unsuspecting fool until the next unsuspecting fool comes along, odd infinitum.
There is no end to it until you're caught.
And it grows and grows and grows in a grand pyramid.
This is a planned deflationary thing, Bitcoin.
It is known to have only 21 million Bitcoins.
However, each Bitcoin can be subdivided into a hundred million units, at which point a Satoshi becomes less than I think about an eighth of a cent if we were to transfer um one percent of the transactions in 4x into Bitcoin.
So Bitcoin is a human-to-human um exchange method that could be considered to be like internet chat, uh anything where you would talk to somebody in a secure fashion.
It could be sort of like Skype, you can consider it to be a Skype kind of a thing.
And now, this is a concept Bitcoin is the idea that we would have human to human currencies.
These currencies have actually uh been inculcated into certain levels of our society because of video games in which currencies are involved.
And the currencies are local to those video games that people get used to the idea of a virtual currency and they develop confidence in them because they've trusted them and they've worked in the past in their environment.
And see, that's the thing.
Bitcoin operates on trust, on confidence, just like the banking system as a whole.
When the banks come along and steal your money through outright theft as opposed to the more subtle form of inflation that they've been stealing it from you for a past hundred and fifty years, then you get a little bit upset.
But there's still theft at that level.
With Bitcoin, you don't get that kind of theft.
You get uh raids or you know, occasionally, but every time there's a raid against Bitcoin, the concept, the concept itself strengthens it against that level of vulnerability, and it won't repeat that vulnerability.
And so the uh it gets uh harder and harder and harder over time to steal from it.
Plus, the nature of the system is such that it engenders uh cooperation and uh confidence and trust building uh by the way in which it's used, and the more people that use it, the more people are going to want to trust it, and there will be fewer attacks against it at it at a particular level, even within the criminal uh uh class.
Um you know, I'm talking uh the organized criminal, you know, Mossad, CIA, these kind of guys.
Um it is true that there were the the connections to Intel Q. I've had a brief run up against them myself, uh that in no way invalidates Bitcoin, nor does the idea that maybe the CIA stole a bunch of them uh during that particular raid.
Yes, it was coincidental temporally.
I have a hard time thinking that the CIA could mount an expedition that quickly, seeing how government is I mean, literally within a day or so, uh seeing how uh fucked up government is in terms of getting uh big operations going, and also at the time, their technical um uh astuteness is uh in some things, in some ways is uh is at least demonstrably lacking.
They may be hiding a level of astuteness that you know an acumen that that they uh don't want to share, but it does not seem that they possess it from the evidence.
Okay, so there's that.
Now, Bitcoin as a concept is a human-to-human uh method of exchange, needs a media through which this can occur.
And so you will find that you will be offered uh a couple of different concepts here.
And the concepts are basically that that you have your bitcoins stored somewhere.
You've got to keep your bitcoins somewhere just the way you've got to keep your money somewhere in some other form.
And in this case, they took the um uh metaphor of a wallet, and so you will have a wallet, and this is where you will put your bitcoins at a personal level.
Now, um you can we'll get into acquiring bitcoins in a second, but let's say that you had a bitcoin and you wanted to store it somewhere.
There's a very number of different ways to approach this.
And I've gone through a bunch of them.
Over the past year or so I've I've crashed a bunch of different software trying to see how recoverable it was, and I've got experience with that, so and so I have a great deal of confidence in the system as a whole.
And here's what here's my well, let me describe the general sense and then I'll describe um what I've taken, the approach I've taken.
In a general sense, there's sort of two uh approaches to a wallet.
One is located on your uh laptop or your computer at home, and the other is on an internet server somewhere.
Internet serving uh server based um uh wallets are of course uh more vulnerable uh to um uh cracking, you know, uh this kind of thing uh because you can turn your PC off and disconnect it from the net and then no one can get at your Bitcoin wallet.
Or you could dump all of your pertinent information onto a USB drive or a thumb drive and pull it out, and there you go.
Nothing's left on your PC, and you can pack it around with you in your in your pocket or wear it on a keychain or something.
Uh so you have that level of security with your bitcoins.
You need not keep them in a place that's insecure.
Further, you can also do things that are really cool, like encrypting, uh, but be careful.
You know, if you start encrypting your your Bitcoin wallet and so forth, make sure you really know your encryption software is compatible with whatever software you use for your wallet.
So there's the online storage of your bitcoins and your your personal storage.
Now the personal storage uh offers you security, but then you have the transaction time cost of not having the bitcoins available in a convenient form at a uh more convenient wallet.
Now, so there might be a reason to have your bitcoin split up.
Now by this I mean uh if you had an online wallet that had uh uh some bitcoins in it, you could use those bitcoins in a transfer and send it to someone uh even if you were not at your PC where the bitcoins uh would be resident.
And so you could log in from a local Starbucks, somebody else's PC, go to a um I've actually uh seen this one occur where a guy went to uh garage sale at Craigslist and they negotiated a deal in bitcoins, and because he had the customer uh they were I don't know what he was buying, actually.
Um he bought a lot of crap, but I don't know what he paid for in bitcoins.
Um but he uh used the um seller's computer to log into his account uh at a um online uh facility and transferred the bitcoin from there, and then uh wiped it out of the cash and he was good to go.
Uh so um you know there's that kind of transaction, and then there's Bitcoin transactions that occur uh one other form of them, which is that you can take your bitcoins with you in the form of USB drives and stuff and use them at restaurants and on various different kinds of machines and stuff.
Actually transact Bitcoin uh commerce there.
So you have basically two forms of a wallet, online or in your PC.
There are variants in both.
Now there's some cost involved in both of the online wallet.
Uh obviously, there's an online company that's making a ph uh trying to facilitate a transaction for you, and uh they're gonna try and uh and collect a fee for what they're going to do.
Different than a bank though, because they're not storing anything, they don't have uh they're any responsibility for your wealth, they transfer the bitcoins to you uh on demand, um they're in a bitcoin form, so it's not like uh you know it stays digital the whole time.
Um so uh they offer some uh value to you though because many of these online wallets are also places where you can purchase bitcoins, such as uh Mount Gox, which is in Poland, which does uh I think about 77% of the Bitcoin purchasing traffic now, and other places like Coinbase, uh Buy Instant and a few others, or Bit Instant and a few others.
Check them out before you get involved with them, uh, and we'll discuss purchasing uh those in just a second.
Bitcoins, I mean.
So uh some of these places would have a online wallet for you, and the idea is that you would upload money to them in some other form of a currency, gold, silver, uh, you know, rubles, uh one, um, you know, whatever, and uh they would take these uh uploaded currencies and convert them to you and buy a bitcoin for you, and that's what they do.
They go out and they find a bitcoin at current market value and then they buy it and sell it back to you.
And so um, and then transfer the bitcoin to you, uh, and there's a little fee involved.
Uh so they actually are acting as a facilitator between a seller and a buyer, very much like eBay.
They are not like a bank.
They're much more like an auction house that takes a fee for providing the uh common ground for the seller and buyer to meet uh with an extra level of surety and uh confidence in the transaction.
And so Mount Gox and and some of these other places uh are um because they don't own Bitcoins, they're not making the bitcoins, they simply have to buy them.
There's a limited supply.
Thus, by the way, you see that the prices are rising because a lot of people want to get into bitcoins and there ain't that many of them.
Okay, so that's where we're at.
Two different kinds of wallets.
Uh local.
Now if you've got a local one on your PC and you want to do a transaction, you want to send me um a bitcoin or a fraction of it, some of the Satoshis.
Uh bitcoins were in were nominally invented by this guy by the name of Satoshi Nakamura, who everybody really thinks is this um uh Russian um mathematician who had m uh won the Point Claire Point care um uh contest uh but then it's gone on to other stuff.
Anyway the small fractional units are satoshis.
So say you wanted to send me a couple of satoshis.
Well um uh you would need an address.
Just like if you were gonna try and mail me a check.
You'd need an address.
Or uh any other way of communication, you need an address to get to me.
It's not an IP address, it's not any of that kind of thing.
It's uh an address within the Bitcoin network.
And see this is where it gets a little bit complicated for people.
Not only uh do I store all the bitcoins in my wallet, but all of the transactions are stored relative to how the network processes all of this stuff.
So my wallet is recoverable based on um its interaction and syncing up with the uh network.
And so we'll get into that in a second.
Now th that's one other advantage of the online wallets is they're continually synced to the network and they actually um uh provide um surety in this con uh uh part of the the loop in uh the Bitcoin which is the proof of work.
And so these online wallets actually act as uh as uh continuous proof and provide uh linkages in the network that are really cool.
So anyway though, um uh i on my local wallet if I wanted to send you if somebody wanted to send me um uh some bitcoins they would need an address and so we would communicate one way or another and they would get an address.
I'd either have it up on my web page or they'd uh ask me and I'd tell them over the phone or I would um uh send them one of those little QR tags uh or I'd send them um uh in some form I'd send them this long label and it's just basically a series of numbers and letters that relate to a um particular spot within the database with that is called my wallet, whether it's online or whether it's local.
And once they had that address, whether the wallet is online or local, then they can send money and the money goes to that particular uh wallet within the network itself.
And the network of all of these computers all working together is what facilitates the Bitcoin in lieu of the central processing that used to exist and be necessary from the central banks.
So basically we've decentralized the s the central bank um main function which is the processing of checks between humans, wherein they took huge fees and and loaded the whole system up with fees and until the point that they were basically a bunch of uh blood sucking parasites and we just can't stand them anymore.
And we gotta get rid of the bastards.
And so uh universe uh pokes a hole in it and says somebody invents something and here's the an idea and oops there comes Bitcoin and now we've got this um uh anti-bankster currency out there, this uh currency of the resistance to bankster oppression of the planet.
And uh Bitcoin works as a uh human to human facilitator as a at a layer that is um the equivalent of all of the work and shit that the the central banks used to do.
Now it does it in a secure fashion by the encryption that's done at the network layer and within the uh wallets and so on.
But you can always add uh further encryption the more to suit your level of paranoia.
You know, dial it up as many times as you want with um extra level encryption of your wallet.
And so there you go.
Basically you've got a wallet.
And in in any kind of a transaction it's uh like you go to a garage sale, you want to buy my old bicycle, you're gonna open up your wallet, you're gonna take out your currency and you're gonna hand it to me.
I'm gonna take it and put it into my wallet as you take the bicycle.
And there we go.
Now in uh Bitcoin uh world you're gonna have to work out how you're gonna get the bicycle to each other but once you open up your wallet and send me the money it's a done deal.
Uh it's not like you can come back and uh uh through some kind of in intermediary demand that money back.
So there's no PayPal kind of um surety or any of that kind of thing and you've got to act as an adult and make sure you know what you're doing with kinds of transactions and and don't get ripped off.
Because there are no third parties to um uh guarantee surety here and there will be nasty humans that want to take advantage of other humans because these are warped individuals and don't know they shouldn't do that.
Uh so you just need to be a little wary.
You know, the universe is filled with deception as nature um tells us and so you've got to be good at at discerning and and seeing the deception and overcoming it.
And but basically you'll be alright.
Uh it's like living down south with the cotton mouths and other poisonous snakes.
You move down there in the Southern uh North American hemisphere, you learn to recognize these bastards 'cause they can bite you in the ankle and cause you to die.
But you know, once you know 'em eh you avoid 'em and so sort of okay.
And that's kind of the uh the uh issue of all the snakes on the internet relative to the Bitcoin thing.
You know, it's a rough world out there, but as adults we can uh safeguard ourselves, and I think Bitcoin is really cool.
Now, let me speak to some examples here.
Uh I've deliberately and accidentally several times crashed my wallet, and I've used several different bits of software, each one of which has been able to recover the wallet within its own structure.
So uh the uh recoverability was I mean the confidence level I have of being able to recover transactions, even hundreds of them.
Now, my wallet software that I use is uh re has to rebuild each and every transaction through your entire history based on the keys that you save off.
So it may take a while to sync up.
Uh when I had to recover a year's worth of transactions here a little while ago just to uh upgrade to the new version of software, it was um about uh three hours before it was finally done uh uh going through each and every one of the transactions, validating them, and so on.
Uh so this whole issue of syncing up your wallet with the net, don't let it frustrate you.
Now it actually uh takes a while to sync up once it you get in uh to the groove, so to speak, and your your transactions and your software is um uh more frequently on the net, you'll find that it takes less time due to a whole lot of factors I don't want to get into.
Uh so um uh that can be daunting at first, but it it uh need not be a barrier to getting into bitcoins and uh participating in this.
Uh so now wallets.
Uh there's uh Mount Gox, there's uh Coinbase.
If you want to get an idea of this sort of thing, you can go to Coin or Bitcoin Magazine, there's a link on the half past human site off on the left to that, and you can uh use that as a resource for finding all different kinds of online wallets of various different forms.
And then if you wanted to find uh wallets that you can use on your laptop, you can do hunts on Google and so on for Bitcoin wallets and download, and you'll see all different kinds.
Now, validate them, check them for viruses, I like a lot of the open source stuff.
Before I download anything, I always go and put in whatever name of software I'm looking at, uh the plus sign and the word reviews uh in Google or uh Yahoo or some of the other search engines and get an uh and read the reviews of the software because frequently you'll find out that somebody will say, hey, don't download this, it's got this piece of crud in it, you don't want that.
And then if I can validate that that particular review is was indeed accurate, well, maybe I don't want that piece of software and I'll go look at another one.
Uh so uh, you know, take whatever usual steps you take for discernment in terms of the apps you're gonna use with this approach, but you can get a wallet uh uh free offline uh download it to your PC, your phone, or whatever.
Now there will undoubtedly be some form of transaction fee in using that wallet as it sends stuff back and forth.
These people are not spending their time developing the software for nothing, except in the open source community, where you'll find all manner of open source software uh wallets that can be used for free.
Uh some of them you you have to look at the settings for transaction fees and to see how they're they're handling uh that component of the interaction with the network.
Uh there are several that will get you through the whole process if you're willing to do the work with no uh sending or receiving fee uh component at all.
Uh but you gotta you've got to be involved in um uh a lot more in your software.
So you're gonna pay for convenience with the wallets.
Some of the Satoshi demands are relatively small.
I have a wallet that uses one satoshi, you know, one hundred millionth part of a um of a Bitcoin uh per transaction.
And these people are going to be fundamentally wealthy as this goes forward, and that's not an issue for me.
They provide a good service, they're continually updating it, and they're continually making the wallet more secure, and I find that is worth paying for.
And they've got some brains behind them.
And I'm using the multi-bit uh wallet, by the way.
Uh I've used several, and I just happen to like this one and uh have found it um easier than than uh some of the others for people that I've uh turned on to Bitcoin, and now I unfortunately I'm actually sort of in the in a situation where I'm supporting other individuals with it.
But it's a very good chunk of software, and I like the fact that the multi bit guys are working their butts off to improve the product as they go forward.
And that you know, they're uh they're from an open source community uh approach to all of this.
So um uh good guys in a good wallet to use.
There are many others that are that are uh uh as valid or equally good, but I haven't kept up with them in like say the last eight months or so, so I'm hesitant to offer much in the way of names for that.
Anyway, so you uh get the wallet, you uh uh next stage is to uh sync up to the network, and then you've got to figure out a way to get a bitcoin or some portion of a bitcoin.
And this is where it's the talk is going to get a little bit um uh squirrely in the sense we're gonna have to go chasing around the tree a bunch.
Okay, so uh before we go into how you would go about buying a bitcoin, let's let's talk for a minute about mining bitcoins or creating them.
Um bitcoins are created at a known algorithmic rate.
A certain uh number of bitcoins are created every ten minutes.
The planet has been div or all of time has been divided into ten minute blocks for the network purposes of considering this particular thing that's called a hashing algorithm.
And you needn't know anything more about it.
But the hashing algorithm for Bitcoin is very robust, and it's also self-healing in in uh multiple ways.
And the mining process aids the self-healing part of the network because the miners uh are basically it's not guys with picks and shovels moving dirt, it's uh people with software and electricity moving bits and bytes.
And they're hunting through vast quantities of of uh numbers looking for specific characteristics, and whenever they can get a bunch of them to match, then they can yell bingo and create a part of a bing uh bitcoin.
Actually, they yell Satoshi and they create part of a Bitcoin.
And so um uh they're doing this, and uh at the same time that they're doing this, these miners, now so there's an incentive to this.
Basically, if the cost of electricity is less than the price of the Satoshi you create, you make quote money in the or profit on it.
You create wealth in this process in the same form of uh wealth from proof of work in mining gold, where you'd go and haul yourself to uh you know, haul your physical body to Alaska, endure harsh conditions, uh dig up a bunch of yellow metal, and haul haul your ass back to San Francisco and spend them the money on pies, uh food, hotels, and whores.
Anyway, and you know, get it into circulation like a good miner should.
Now, miners today, I'm not commenting on what they spend their bitcoins on.
That's not my my um uh part of this, but here's how they create them.
They are basically creating them with the same proof of work as a miner in the in ancient past.
Only here they're using uh electricity as proof of work and all this machinery in the form of software overlaid on computers.
Now, in the process, the miners form a part of the network that is uh what makes the Bitcoin network robust and um self-healing and uh uh self um growing and protecting at this particular level.
And that is that as it bitcoins become more valuable, more people want to mine them, more mining software will be set up, more reinforcement of the hashing algorithms and the support behind it, and it becomes a because the nature of the algorithm underlying it all in the way in which the code is put together,
as uh vulnerabilities are exposed over time, such as you know the rare occurrences of um uh that you may run into technical terms like uh block splits and and fractures, as things like this occur due to uh how the computers actually are functioning, and I don't want to go down there, down to the primary and zero layers of the computer um hardware.
But uh the there basically the idea is that it uh the the network itself becomes more robust over time because more and more computers are added to try just out of the incentive of trying to make these Satoshis.
And it just makes your network that much more robust and uh resilient.
And so Bitcoins actually function better as we go forward.
And so you the more miners out there, the faster the network responds and so on.
And in fact, the more wallets that are online, the faster the network operates, uh the more transactions that are going through it, the cleaner the transaction rates, uh the cleaner the history of um uh clearing, the fewer number of steps involved,
and yet the number of uh redundant steps can be uh multiplied almost infinitely because you have the uh capacity within the network itself, so your level of redundancy in case of any kind of crashing uh at a personal or a regional level uh rises significantly.
It's really a cool damn algorithm.
I don't know why I got off on on that component of it, but uh actually I just uh very admiring of the uh the mines that put together a lot of the code.
Um anyway, so um uh you're a miner, you set up some software, uh, you get all these things running, you plug it in, you get your network nodes, you start paying people for online access, and you start contributing to the global economy as you create bitcoins.
And you create the Satoshis and you start uh racking them on up and you support the network and the in the back end of things, so to speak.
And that's where the bitcoins come from.
Now, at that point you've got a bitcoin that did not cost you the nominal currency value of a bitcoin as a miner, and so you it cost you the electricity, the sweat, the uh time, the proof of work, getting your brain cells wrapped around the concepts, getting your your uh system running, etc.
And uh you're up and running and you've starting to create some value, then you've got something to sell, and so that's how the bitcoins come into the system.
Is that at that point these people need to be compensated to pay their electric bill and some other form of local currency, etc.
And so they'll start uh there's a natural incentive for them to sell bitcoins into the system, or sell satoshis in.
Uh so um uh at so now you're on the other end of things.
You're not a miner.
You're um uh uh you know Sean's friend um uh uh Linda down there in um Los Angeles and uh uh you just want to set up a wallet, and so you you call up a guy and he comes on over and he sets up a wallet for you on your on your laptop and you know you pay him a few dollars, and uh it's like okay, you're good to go there, and it it all works just fine, and you sync up to the network.
Now the thing is, okay, how do I get a bitcoin?
Well, there's a couple of different ways to go about it.
Actually, there's a number of different ways.
You'll find that some of the miners that had started off in um mining bitcoin a long time ago don't bother with the uh issues of trying to sell bitcoins on websites or this sort of uh that they don't bother to put put them into the system that way.
You will occasionally find them on Craigslist.
You'll also find people for whatever reason that want to buy want to sell uh bitcoins on Craigslist.
So I know a number of individuals that just maintain uh adverts on Craigslist in the want to buy area and other um uh uh lists like Craigslist where they just say want to buy bitcoins and you know willing to pay um uh you know average uh daily weight or uh uh that kind of thing and uh you know in their local currencies.
So that's one way of doing it.
Now we're starting to see Bitcoin um uh ATMs appear, so you'll see that those are going to pop up all around.
Another way to buy them is to go to Mt.
Gox.
Now, Mt.
Gox handles about uh something less than 80% of all the Bitcoin uh purchases over this past year.
I don't know how it'll happen in the future because the whole Bitcoin world is going to fracture and and just go basically batshit up uh as we say up here in the Northwest over this next uh few months and into the next year.
So now the Bitcoin, assuming that electricity continues, etc.
Um so the Bitcoin uh sales at Mt.
Gox are a slightly different uh critter.
Mtox is located in uh the operators of the site are located in Poland, you basically have to uh link a bank account to them to get money to them.
Uh but you go to Mt.
Gox, you create an account, and you're you're basically creating an online wallet, and in one part of your wallet you'll put your local currency.
You'll put Great British pounds, you'll put uh euros, you'll put dollars, you'll put whatever, and on the other side of your wallet you'll eventually use to buy bitcoins.
Now you'll end up paying going rate plus some small fraction for the Mount Gox transaction fee, uh, as you would in any kind of a market, you know.
Uh but unlike a bank, the uh fees and so forth are not these uh blood sucking uh levels uh all over you know at every level of the transaction.
Uh plus the banks create and devalue the money that they're dealing with, that's not the case here.
The bitcoins are actually going to increase in value until a certain condition is reached, which I can talk about later in another Wujo.
Uh but will potentially increase for a number of years as long as electricity and humanity keeps going on its uh present tech.
Um, so um uh Mount Gox, you go There, you create it's a wallet, you create an account, it's free, you've registered, and then you start getting yourself auth authenticated to them one way or another.
One way to do it is to find out uh how close you are to one of their ten thousand plus ATMs, and you can go and feed in a bunch of cash of your local currency into the ATM and send it to the Mt.
Gox account.
Then the cash sits there while uh you then go ahead and arrange to purchase the uh bitcoins that you want to want to buy at Mt.
Gox.
Then you could actually have to sit there and allow the process at Mt.
Gox to take off.
And this is where some people get really distressed because they might come on in and find that bitcoins were 141 dollars uh when they put in their buy order, but they don't get them delivered to them until or they get the bitcoins delivered and they find out that they couldn't buy as many bitcoins as they wanted because they didn't have as much uh money in their account because by the time the actual transaction was able to be processed, the bitcoin was at 160 or something, you know.
Or maybe they could buy more because bitcoins had temporarily fallen in value relative to their local currency.
So uh it's a true marketplace, and so uh it's not like you're gonna be quoted a fixed price by a central person that already has this item in inventory and is able to sell it to you at that price because they know they've got it there.
This is a much more fluid environment.
Uh so it's uh it can be a little disconcerting, although it's much more honest in many many ways than anything dealing with the banks.
So um you want to buy your bitcoins, you go to Mount Gox, you get registered.
It can take 10 to 12 days depending on the approach, and depending on what you have to provide them in the way of um certification uh certs and assurances, as we say in the phone industry.
Uh that uh you have to provide some form of um validation of who you are and all of this kind of stuff, basically to say you're not a crook, and that you do live at these places and can get money to them.
Um this is assuming you're not putting money in through their ATM and you're gonna have some kind of an electronic to uh peer-to-peer transaction with them out of your bank account.
And that's sort of where you're at.
Uh PayPal does that kind of thing to allow you to sell and buy on eBay, transfer money back and forth through PayPal around the planet, as long as it's in dollars and the other um traditional Zionistic um uh bankster currencies that they handle.
Now uh Mount Gox does not do the PayPal kind of thing.
It's not a central uh clearinghouse in the way that PayPal is where uh those kind of transactions take place.
It's much more like your online wallet with a little bit extra in that these guys have some some bitcoins to sell and you can purchase them at the going rate.
You'll find that this model is effectively um duplicated in all the other Bitcoin purchasing areas.
Uh I've personally used Coinbase, I'm not yet validated with Mt.
Gox, I've never gone the Mt.
Gox route.
Uh we are here at half past human doing that.
There are issues in getting validated because there's like seven or eight thousand people ahead of us.
Uh it can take, as I say, ten to twelve days to do so.
But then once you've you've done that, you can uh jump into the marketplace uh full bore and start buying and selling vast quantities of bitcoins and there aren't that many limits and so on.
A lot of the other places that are not Mt.
Gox have limits on them because they are also scrambling to buy bitcoins to sell to you or to make available to you to purchase from someone else.
So there's uh the online wallet approach, which would be like uh Coinbase and uh Bit Instant and um and Mount Gox for purchasing bitcoins to put into your wallet and uh and Craigslist, you can buy them at that level.
You can also advertise for them and and you know just put out, I know a guy that's got a website.
I I don't think I've ever been there, as you just told me about it, where he just uh keeps on his website that, hey, I buy bitcoins, you know, uh y'all let me know and I'll transfer um stuff to you.
Uh so now there's another way to get bitcoins, and that's to sell uh hard goods for bitcoins.
And so you'll find that that's the traditional route in the Bitcoin world, because bear in mind now, Bitcoin is a pirate currency.
It it wasn't intended to be a pirate currency, none of the guys that wanted to make it are pirates, but the pirates of the planet adopted it way early, and it's been the currency of choice for uh transactions that are illegal in many jurisdictions that one may undertake in a place called uh Silk Road on the Torrents.
Uh I won't get into those.
If you're not familiar with that world, don't go there.
Uh you know, stay up or uh level in the um in the internet world and don't bother with this.
But um bitcoins have been proven in the pirate world and have risen up out of those marketplaces and we've seen some much more legitimate marketplaces emerge that are Bitcoin central.
And so you'll find places like BitMit, B I T M IT, which is a um uh uh an auction house where you do transactions in Bitcoins.
So if you've got something of value and you universe wants to reward you, you could go there and auction this stuff off and accept uh payment in Bitcoins.
And it's very much like dealing with uh eBay and so forth.
There's a slight transaction fee for their participation in setting up the marketplace for you and basically it's a human to human interaction thereafter.
They offer some level of support through the transaction and you can investigate that for yourself.
I do know a number of individuals that have made significant Bitcoins off of that.
One person uh does just marvelous work with um alpaca fibers and over the past couple of years uh she's been auctioning off all kinds of things there and uh has uh amassed uh uh enough bitcoins that she'll be a multimillionaireess as this goes forward.
Um anyway um uh so there's things like BitMit you'll also find that there are um other methods of receiving and selling in Bitcoin.
So say that you've got a website and you're already selling something.
Well just go to some place like uh Coinbase or one of these other online wallets and or generate addresses and slap them up on your website and say, you know, here's my price in uh Bitcoins today for this particular service, product or whatever.
And so just start participating in the economy that way and you need not purchase the Bitcoins you could sell your goods and services in for Bitcoins in lieu of dollars or you know yen or pounds or whatever you're currently taking in terms of currency for those efforts.
This is one of the Bitcoins by the way I believe is one of the um creativity centers that w we've forecast for a long time about this upcoming Renaissance because it takes the oppressors out of the the way.
You'll note that in the last uh since 1966 now I think it is or 69 here in the United States the statistics are out now.
All of the wealth that's been created basically has gone to the upper one tenth of one percent and everybody else has gotten fifty nine dollars in in income growth over all this time.
And it's because we're all working our asses off and dying young to support the um blood sucking parasites that are uh at the center of the system.
These uh reptilian hordes are uh evil bastards and we need to starve them.
So we can starve them by opting out of the system and just like Buckminster Fuller said the best way to do this is to not engage with the the evil ones simply invent a system that replaces them.
And we've done that with uh the internet in terms of the information layer because now we can get information without them intruding and we can now uh interact and uh transact business with Bitcoin.
Bitcoin by the way is not the only crypto or or um uh encrypted currency out there.
There's a number of others that are equally good.
Some of them are growing quite quite fast.
You need to be very astute though as you go through this and validate all the steps and so on that in terms of which ones you're getting involved with and where one might want to put um their stores of wealth.
Bitcoin offers a couple of advantages over some of the others in that its initial testing in the world of the pirate zones of the torrents has provided it a level of confidence that a few of these others will have to work to gain.
So just on that basis alone, on the confidence of the human to human level, I think you'll find more transactions in Bitcoin for some period of time than these other currencies.
But that also, again, is another advantage to the other currencies if you're of a mind to go that route.
Bitcoin as a issue with taxation and intergovernmental interaction is less of an issue in my mind.
I find that the government, I think, is destroying its credibility.
Because basically it's come down to this.
Our government in here in the North American continent has now said that they have the right to incarcerate us without trial.
in perpetuity uh forever and they have the right to kill us from uh the sky with no notice with this drone, no trial, no due process, and they have the right to steal all of our money.
So it's like, hmm, how is that different from the mafia or any other criminal organized criminal organization here, organized criminal gang, uh accepting the level of technology involved and the quote officialness of their sh their sanction.
In my mind, the government has overstepped any kind of bounds, any claim to moral authority, and has no sway over my um actions anymore and can make no claims on me as in any f way of representing me and they've in fact declared themselves to be my enemy.
Anybody I've got to tell you people, anybody that comes on up to you and says, hey I can kill you by by sending a uh your name over to this uh assassination czar or by telling the CIA I want you you know uh snuffed out with cancer or I want you um you know irradiated until you have a heart attack well that fellow has made themselves my enemy then they've made that entire organization my enemy.
And uh you know wasn't any of my doing I'm not the terrorist here.
They are so I'm just taking the you know uh proper moral stance of a sovereign citizen, you know, uh self-aware, self-actualizing human on planet Earth and saying basically hey fuck y'all and by the way I'm gonna start using Bitcoin.
So anyway enough on that particular rant.
Now Bitcoin is a primer uh this will give you uh sort of an idea of the context of it all if you're if you're not into if you're not a software geek you don't really care too much about the network component of it.
What you care about is your interaction with it.
So what you're gonna want to do is to find the wallet that suits you.
Spend the day, download a bunch of them, look at the reviews, check the different um features that may or may not uh suit you.
You may need the ability to do roaming uh you know but you may not need these other features that it's got.
So have a look at what's available in the many different wallets.
Uh people are inventing new styles all the time.
Good places are like SourceForge that's open source you'll see all different kinds of good stuff there.
The advantage to open source is that when someone provides it, they provide the source code.
So you see what kind of cred they're putting in there.
You may not read code, but lots of us uh other guys do read code and if we do and we find crap in there we'll post it and say hey wait a second there's crap in this code don't use this so I I you know I like the open source for that that reason.
Um but that is not uh a limit there's a lot of really good commercial wallets out there.
Uh some very very very slick ones that have all kinds of features to sync it up with your phone and do things I don't particularly need.
Uh so I can't recommend them.
Uh but I do recommend the process of educating yourself in looking at the various different kinds of wallet software and uh seeing the services that they can offer.
And many of them you can do this just by reading through their website and looking at the screenshots and you needn't download and install it.
There are the course the issues of uninstalling some of the stuff after you've got it in there and going through that sort of rigmaro.
But once you've done your research and you've narrowed it down to a couple, you can try them and see which one is most effective for you.
And then I encourage people to look at BitMit and some of the other auction houses and other stores in which you can exchange.
Actually, some of the places will even do, depending on where you're at, they'll do local pickup and exchange of bitcoins for things like gold.
Gold and silver.
That's not my recommendation, by the way.
I'm personally of the opinion that we've been waiting for the hyperinflation to show up in order for it to rip the whole system.
them to bits and allow gold and silver to come out from underneath the oppression that has held them down so long and so far.
In my opinion, silver should be about 175 or more right now at a bare minimum based on the conditions that are going on within the debasement of the currency by the fucktards that are running everything.
So, you know, the evil cabal blood-sucking tick bastards at the top.
So in any event, you know, I've got two silver coins and I'm not going to sell them to get a Bitcoin, which is kind of stupid because Bitcoins will accelerate much more rapidly than silver initially.
it's uh expected that mathematically the bitcoins could reach in the forty or fifty or sixty thousand dollars per Bitcoin uh within a short period of time just based on uh the expected uh flood of interest as Bitcoins cross the gap as we say in the um software business or crossing the chasm uh so um The uh the Bitcoin um uh rate of increase will be m much more rapid,
but if we lose electricity with a global coastal event, which uh the global coastal event uh is uh forecast to make electricity a difficult commodity for us here in the Pacific Northwest, but m but it may not in any way be forecasting that for any other part of the planet.
We just don't have that uh uh understanding at all.
And so there may be electricity in bitcoins that are uh operating throughout Europe, east part of the uh United States, uh, you know, uh Africa and Asia and so on, just not in the Pacific Northwest because we've been isolated due to a large earthquake.
That's just our understanding of of uh what our forecast is.
Uh so for our particular situation up here, I'm keeping my bitcoins um on my laptop and on uh you know backed up on the little uh thumb drives and that kind of stuff.
But uh I'm also keeping my two silver coins because I expect that the uh there will be a difficulty for me to reconnect until sometime uh, you know, uh if we get a large earthquake here before May 20th, as we're expecting, um, there will be some level of difficulty for me to reconnect and make these bitcoins of any uh use to me uh uh afterwards.
And that's just merely because our area is disc uh more or less described as being isolated uh through lack of electricity.
And I have no forecast uh w what the electric levels will be in any other part of the nation, any other part of the continent, any other part of the planet.
But I'm making the assumption that you know the electrical systems are somewhat robust and that they will survive, as we've seen in Russia, we had the meteorites come down as were forecast by um the remote viewers, they caused lots of damage, people ran around, lots of people injured, but it didn't destroy the infrastructure.
The global coastal event uh it may do a lot of damage, lots of people running around, a lot of people fleeing, uh may even be a large number of deaths, but and it may be a large amount of infrastructure damage, but it won't necessarily bring down the global infrastructure per se.
And so I think bitcoins will persist and in the same form of human-to-human communication uh that we've got now.
Uh in terms of its, you know, trend line.
I think that's about it.
Uh it's a little primer for bitcoins.
So it's a quick little rundown.
Bitcoin is human-to-human communication that allows you to discuss wealth and transactions.
Uh Bitcoin uh has an internal uh network to allow the communications that's resilient and is a um uh self-policing network.
You keep your bitcoins in your wallet as you would at your uh any other kind of currency.
In this case, your wallet can recover your currency if it gets um uh destroyed under some circumstances.
Uh you know, if you get totally uh uh garbage to get even, I've uh seen people extract data off of damaged hard drives, and I know a guy here locally that has got some really cool machinery for doing just that, and I've done it myself when I was working uh network stuff in uh for government.
And so you can you can even recover off damaged hard drives, so uh it's quite recoverable uh down to some level, but uh multiple backups are pretty sure that you're gonna be able to recover without too much trouble.
Um so uh it's uh recoverable that way, whereas you know, if you lose your wallet over the side of um uh the boat, uh you know, whatever was in it is gone.
Uh here if you had a some your wallet on a thumb drive and you lost over the side of the boat, big deal, you go home to whatever you use to software you use to put it on that thumb drive and run that again, and there you go, you can recover your wallet.
Uh so it it adds that level of robustness to currency.
Um the human-to-human component of it allows for the transactions to occur without any intervening um parties, but most of the wallet software is uh self-supporting one way or another, and we'll try and get a fee from you one way or another, and you can just examine and pay whatever fees are you're comfortable with for the level of service provided.
They're fair, usually, I mean the stuff I've run into has been extremely modest.
Um let's see, any other pertinent stuff.
More and more places are are setting up to accept bitcoins, but uh we're in kind of a little conundrum here, or uh or a um uh reality um uh I want to say comedic play of irony because more and more pieces of places will set up to accept bitcoins,
but fewer and fewer people will be uh willing to release them until we get a price stabilization that seems realistic, and uh that price stabilization that seems realistic is way up from where they're at now.
Uh so you know I'm hesitant to buy a pair of socks uh with my bitcoins uh because you know, if it were uh force for bitcoins, as it has been in the past for some of these alpaca socks, and bitcoins go to be uh fifty thousand dollars each, well damn, that's one hell of a pair of expensive socks.
And that's the uh mental issue that a lot of people are are uh facing with bitcoins.
I suspect that this um situation psychologically will continue through the process of the um early flush of the um uh uh mainstream adoption of it.
So as long as there's this uh fever to get into bitcoins, it'll continue to push them up more as an investment vehicle, and so the uh uh few people will be more and more reluctant to uh spread the satoshis around.
But then it'll break loose as uh the bank system uh falls to pieces around us, then it then the uh bitcoins uh and other um encrypted currencies like this, uh human to human, uh will uh flourish in terms of transactions because you'll be able to have uh transactions down into the less than a penny, actually, I think.
Uh I think actually if um if we got four or five percent of the planet's wealth into um uh bitcoins, each satoshi I was told would have to be about a nickel.
So uh to accommodate that.
Uh so just to give us an idea of the perspective.
Um, so I expect bitcoins to be uh sought after for some time, and they would be uh there's a number of different ways to get at them.
A lot of people I know are getting into the mining field and having success.
Uh it's an uh i issue I've discussed in uh another WuJO about in terms of the luck involved and uh this kind of thing, but uh mathematically you will generate some level of satoshis, and the issue is whether it's gonna at this point it is worth the work, but it's uh the issue for you is the you know the cost involved in getting set up and so on.
But mining is uh very good uh network supporting activity and should be encouraged.
And as I say, will be profitable for some time, as long as there's this rush to get into uh the bitcoins.
And I can't estimate how many people are interested in them now.
We're just barely scratching the surface of the mainstream financial press.
It's not really entered into the um mainstream media that's controlled by the banksters, they don't want it to ever show up there.
The minute it does there, you can pretty much assume the banks are done.
Kind of like the way Walter Cronkite came on to national news way back when and said, you know, Mr. President, no one supports your death camps in Vietnam.
And so they had to stop doing that.
Uh when uh bitcoins show up on your evening news here in North America, they will essentially at that point be the mainstream, and the bankers will be um remnants of history, and they'll just wake up and discover that one day.
Uh they're not that there won't be some banksters that were astute enough to get into bitcoins because they're a bunch of these guys that did.
It doesn't matter though, the way it it plays out, their role will uh as a class will be relegated to um uh historical discussion of how in the hell can we let these fuckers do this?
Anyway, guys, so so there's your Bitcoin primer as best I can do under these circumstances.
I gotta get in out working my grow dome at the moment.
That's something else.
If you're not mining your bitcoins, you should be out um uh working on your growdoms in your gardens.
Uh every uh bite of food you grow yourself is money you take from a banker's pocket.
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