Nov. 19, 2013 - Freedomain Radio - Stefan Molyneux
04:57
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| Hi everybody, Stefan Molyneux from Freedom Aid Radio. | |
| I hope you're doing well. | |
| Some updates on Bitcoin, which for those who've been following, has been quite exciting. | |
| It has been cruising between seven to eight hundred dollars today around the world. | |
| About seven weeks ago, I put out a video called The Truth About Bitcoin where I said it was a fantastic thing. | |
| I was going to stay in it. | |
| And then it was trading at $137. | |
| So I hope that you decided to buy some. | |
| And I hope that if you made some money, you might spread a little bit of love back to the FDR mothership. | |
| But a few considerations and thoughts that I think are important. | |
| The Senate in the United States gave the stamp of approval to Bitcoin and have talked about it as a perfectly legitimate commodity and currency. | |
| And that's, of course, good news. | |
| There was a lot of run-up and investment in anticipation of positive news out of Washington, which is really quite important. | |
| Ben Bernanke says they have no plans to track or regulate Bitcoin. | |
| Now, is this out of the goodness of their hearts or because they're interested in the furtherance of the economy? | |
| I guess I would say no, not so much. | |
| What that means is that politicians have bought bitcoins. | |
| That's all you need to know. | |
| And politicians know that if the cold, dead cryptkeeper hand of the state goes anywhere near the currency, there's going to be trouble. | |
| So... | |
| I think you can understand that politicians who can see inside the Fed and the grisly dismembering of the modern economy that is occurring through quantitative easing and other forms of inflation, they know what's going on a lot better than you and I do, and I bet you they're deep, deep into Bitcoin. | |
| Now, of course, China has been doing a lot of investment in Bitcoin. | |
| Chinese exchanges have sprung up. | |
| And the Chinese are savers and they are investing in it and they view it as just another commodity, you know, oil or gold or whatever. | |
| So they're investing quite considerably and there have been short instructional videos on Bitcoin that have been played on Chinese television. | |
| Why is that important? | |
| Well, that is important because Chinese television is run by the state, which means that the state wants to educate... | |
| People about Bitcoins wants to educate the billion-plus Chinese about Bitcoins. | |
| Why does the Chinese government want to educate people about Bitcoins? | |
| Because they are one of the largest holders of U.S. Treasuries, and I imagine that they smell the toilet paper wind coming along to scoop up those Treasuries and return them to the value which they contain, which is... | |
| So my guess would be that the Chinese government is interested in Bitcoin as an alternative. | |
| Gold is always problematic because so much gold is owned by governments, and as governments start to run out of money, governments will start to dump gold on the market to pay for another day's bills, and therefore that's going to, of course, depress the price of gold. | |
| So gold has been heavily socialized by governments around the world. | |
| This is a big problem for investors who imagine that inflation Bitcoin is, of course, out of the reach of that. | |
| Now, another way to look at it that I think is important is if you take the 7 billion people in the world and you divide the amount of gold that is above ground, you end up with a value of about A thousand dollars per person. | |
| There's about a thousand dollars per person of gold on the planet. | |
| And Bitcoin, now that it's marketed out or its market cap is at about seven billion dollars, is one dollar per person. | |
| So it is one one thousandth the value of gold at the moment. | |
| Will this change? | |
| Yes, I argue that it will. | |
| And onwards and upwards. | |
| So I just wanted to give you a quick update and let you know what's going on. | |
| Of course, I'm happy to take Bitcoins in donations, but I'm hanging on to mine like grim death. | |
| And I do believe that it is going to be something very powerful for people who want to get out of government securities, government treasuries, government bonds, which given the 120 trillion dollars of unfunded liabilities on a 15 trillion dollar economy that the U.S. faces. | |
| The US currency is not long for this world. | |
| And if you want to get out of that, you either go into very hard commodities, like oil or gold or sort of basket of commodities, all of which are controlled and managed by governments either directly or indirectly, or you go into cryptocurrencies or something like that, which are outside of Thank |
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