The value of Bitcoin

Making predictions about phenomena such as Bitcoin is fraught with difficulty, not least because its origins are uncertain. For example, it has emerged that a US intelligence agency, the NSA, produced a paper in 1996 describing such a currency.

Did the NSA Outline Bitcoin In 1996?
The NSA was one of the first organizations to describe a Bitcoin-like system. About twelve years before Satoshi Nakamoto published his legendary white paper to the Metzdowd.com cryptography mailing list, a group of NSA information security researchers published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash in two prominent places, the first being an MIT mailing list and the second being much more prominent, The American Law Review

If you want to know more about Bitcoin and understand the factors likely to influence its value, this recent article is a useful guide.

The Value Of Bitcoin by Chris Martenson
Isn't what most people think it is
So... in the past week, I’ve been asked for advice on Bitcoin by my brother-in-law, my local realtor, and close friends from as far away as Texas.
None of them cared to learn what it actually is. Or how it works. They just wanted to understand why suddenly so many folks they know are trying to buy Bitcoin hand over fist. And, of course, should they buy in now, too?
If you (or people you care about) have similar questions, this report is for you.

Chris refers to the energy cost of producing Bitcoin - many fail to see the irony in the promotion of crypto-currencies in the context of the man-made global warming hoax. However, one enterprising Bitcoin miner is using the excess heat from his multiple computers to grow food.

Bitcoin mining powers Canadian man’s innovative aquaponic garden by Kristine Lofgren
This indoor garden is heated by something totally unexpected: bitcoin mining. When software company owner Bruce Hardy saw how much heat his computers were generating, he decided to put that extra energy to good use. Now, instead of using air conditioning to cool his computers, he channels the heat they generate to power and heat a thriving aquaponics system and greenhouse.

It is worth noting that banks currently create money from nothing with no cost of production. As we know, intelligence agencies serve the interests of the banking cartel rather than national interests and banks are developing crypto-currencies.

Are The Banksters Creating Their Own Cryptocurrency Called ‘Utility Settlement Coin’? by Michael Snyder
Independently-controlled cryptocurrencies such as Bitcoin, Ethereum and Litecoin may or may not survive in the long run, but blockchain technology is definitely here to stay.  This technology has revolutionized how digital financial transactions are conducted, and it was only a matter of time before the big boys began to adopt it.  Previously, I have written about how the Washington Post is hyping something known as ‘Fedcoin’, but Fedcoin does not yet exist.  However, a digital currency that uses blockchain technology that is called ‘Utility Settlement Coin’ is actually very real, and it is currently being jointly developed by four of the largest banking giants on the entire planet.

There has been speculation that governments may ban crypto-currencies but as we know, governments will do as they are told and the banking cartel are unlikely to sanction such a move.

Why Governments Will Not Ban Bitcoin by Charles Hugh Smith
Those who see governments banning ownership of bitcoin are ignoring the political power and influence of those who are snapping up most of the bitcoin.

Critical Thinking's analysis suggests we need to decentralise power and crypto-currencies are one method of doing so but we need an "ecosystem" of currencies to serve different needs.

Reform Proposals in the Monetary System for Attaining Global Economic Stability
To remove that power and to ensure that money can never be used in this abusive, oppressive and destructive way again, we need an ecology of money with no central control

Finally, should you buy bitcoin to participate in the current speculative frenzy? We aren't here to advise or predict and the future remains fraught with uncertainty. We should remember the Dutch tulip bubble in which a single tulip bulb reached some $75,000 in today's money. Currencies are principally to facilitate transactions and are a record of value, rather than being wealth creating. We argue that all money should be treated thus; hence our antipathy to usury. Crypto-currencies are probably here to stay (as long as the energy is available to power them) and Daily Pickings would advocate their use but not for speculative gain.

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