After six years of incredible gains in market share and adoption crypto currencies, particularly Bitcoin, are here to stay. Bitcoin has gotten some bad press, but none of the problems you may have read about concern its security, flexibility, utility, or power to positively affect the market. The challenges Bitcoin faced early on had to do with speculators and so-called “investors” who manipulated the market price or created shadowy exchanges in which millions of dollars in Bitcoins suddenly vanished. Again, this had NOTHING to do with the reliability of Bitcoin itself. As any true Bitcoiner will tell you, if you keep your Bitcoins safe in a Bitcoin wallet you trust you’ll be fine.
The Structure of Bitcoin
To understand Bitcoin you first need to understand the structure of the technology. Once you’ve got that down, you can begin to appreciate the God-given beauty of the system. For starters, Bitcoin is NOT the Mark Of The Beast! The reason why it is powerful is also the same reason why it CAN NEVER be used by totalitarian governments or despots and that is because of a wonderful thing called open source technology.
Bitcoin is based on open source software similar to Linux, UNIX, and Android, meaning that the actual code used for Bitcoin is open and available for everyone to see. This is the complete opposite of proprietary software like Apple, Microsoft, and others whose source code is NOT open to the public. The distinction between open and proprietary code is very important. In open source software there are thousands if not millions of eyes constantly viewing the code, so if someone puts something malicious into it like a “backdoor,” it would be caught almost immediately.
The nature of open source software is such that it can be utilized by anyone. If you wanted to become your own Bitcoin miner, you could. You could even open a Bitcoin exchange, if you so desired. Think on the power of that for a moment! If you wanted to be your own bank and dispense dollars or euros or any other state-controlled fiat currency you would be arrested and sent to a very dark hole for the rest of your life. Not with Bitcoin. All you need is the technical expertise.
Another benefit of Bitcoin is decentralization. NO GOVERNMENT issues or controls the currency. It is the BEST example of a free market currency at work. Furthermore, since Bitcoin is decentralized there is no manipulating it. Any temporary manipulation via speculation has a limited impact and it will never take down the system. This aspect of Bitcoin gives it a flexibility that The Guerrilla has never seen. He firmly believes that at this stage of the game Bitcoin cannot be killed.
How is Bitcoin made? The architects behind Bitcoin knew that being independent of any government or commodity meant that the currency had to be built or backed by something. The only viable candidate was technology, as in technical knowledge and resources translated into something with monetary value.
The technology used to create a Bitcoin is called Bitcoin mining and it works in ways that are truly remarkable. A Bitcoin miner sets up multiple servers in an array and uses those servers to break complex computational problems. When each computation is completed a Bitcoin is generated and a file called a “Block” is created to verify that the work was performed. Block files are then strung together into a “chain” that acts as a record of the most recent Bitcoin mined. When a Bitcoin is used in a transaction a block is added to the chain to further verify that it is a legitimate Bitcoin. Amazing, is it not?
Think of the Blockchain as a digital ledger or record book, but due to built-in safeguards the mining program that creates the Blocks cannot be forged. Every Bitcoin generated by a miner creates a Block that triggers the program to create more Bitcoins. This this time around, however, the calculation required to generate the same amount of Bitcoin grows exponentially more complex requiring more computational power, more equipment and servers, and significantly more labor to perform. There you have it! Greater labor equals more Bitcoin. The other appealing aspect of Bitcoin is that the design limits its creation to only 21 Million Bitcoins.
Those of you who buy precious metals understand what this means. Like gold and silver there is a ceiling to the number of Bitcoins that can be created. Once that number has been reached that’s it. No more can be generated. By current estimates there are just over 15 million Bitcoins in circulation. Those were the easy ones to mine. Remember the increasing complexity of the calculation. As the demand for computational power to create Bitcoins grows fewer Bitcoins will be created. This is why current projections estimate that the 21 million Bitcoin limit will not be hit for another 140 years!
Excuse the pun, dear readers, but you should marinate a “bit” on that information. Compare how Bitcoins are generated to every worthless piece of trash fiat currency that is CTRL+P’ed into existence by corrupt banksters and criminal governments whose destructive policies turn you into a helpless victim. All the while they require you to report every transaction. They control where you can spend your money and they treat you like a criminal.
Can you smell their panic, my friends? The elites may gloat about technology, but they have underestimated the human spirit, the talent, and the intellect that has taken the same technology used against you and turned it into a weapon for individual freedom and empowerment.
Bitcoin Utility & Flexibility
The Guerrilla recently took a crash course in Bitcoin with Roger Ver, a renowned expert on crypto currencies whom some have called the “Jesus of Bitcoin.” Roger has appeared on numerous news shows and radio programs connected with The Guerrilla and he has shared with me not only the power, but also the everyday practicality of Bitcoin.
Here is a case in point. Roger was on an island in the Caribbean when The Guerrilla skyped him. He helped Yours Truly set up a Bitcoin Wallet and then sent $20 USD in Bitcoin instantly with no wire fees, no personal information exchanged, and NO paper trail leading back to some fast-food stained bureaucrat. There was no reporting … nothing. It was the digital equivalent of Roger meeting me in a public place and handing me a $20 bill. It was quick and easy and The Guerrilla loved it!
Think of the possibilities. For many Americans, Bitcoin is not something in the forefront of their thinking. To the snobs in the U.S. media it is a dubious currency used by shady individuals and privacy zealots. But to people who live in nations where the economic collapse is real, places like Argentina, Greece, Brazil, Portugal, Spain, and parts of Africa, Bitcoin is the only viable and convenient means of exchange for goods and services.
Think of the exchange that Roger did with Yours Truly. Imagine that he was in Greece or in Argentina or in some other country with stringent capital controls and he needed to send me dollars. Do you think that he would have been able to get me the currency ANONYMOUSLY using traditional bank wire means? Of course NOT!!! The capital controls of these nations constrain business and trade. Heck, they constrain your ability to live! Ladies and gentlemen, Bitcoin was the BEST PERFORMING CURRENCY OF 2015 for a reason!!! Let that fact sink in.
After our small transaction, Roger showed me how to use Bitcoin on Amazon purchases while saving an additional 30-40% on top of the prices that Amazon had listed. I watched him buy products in real time via screen share and fell off of my chair in astonishment. As I picked myself up, he walked me through the purchase of a Samsung 4K UHD 65” (UE55HU8500T) TV. Regular price for the TV is $3000. The listed Amazon.com price was $1600. Roger’s Bitcoin price was $1300!!! He saved $300 by paying in Bitcoin and did it all by using a 3rd party Amazon.com Bitcoin client Purse.io.
Then, even more importantly for The Guerrilla, he showed me how I can save 20% on all of my Starbucks purchases in any Starbucks, anyplace in the world using the Foldapp.io. I spewed coffee like a stunned ape and gaped at the possibilities. Now The Guerrilla can get his coffee fix just like the trendies with Apple & Android Pay, just without having to give out his personal information. Hallelujah!
These are fun examples, but The Guerrilla wants you to take the advice of his friend “W” and THINK BIGGER. Look at what can be done with Bitcoin. Imagine buying and selling precious metals using Bitcoin. The Chinese have been doing it! Imagine replacing the majority of your transactions with others using Bitcoin instead of toxic fiat. Average everyday people can create a complete, pure market driven economy free of government constraints and meddling regulations while protecting their privacy and freedom. Amen, I say.
Bitcoin: The Banksters’ Nightmare
The Guerrilla agrees with many commentators that Bitcoin is the most important technological invention since the internet. It is without doubt a big-time disruptive technology. The banksters fear it because they cannot control it. Thus they vilify it, downgrade its potential, work to slow down its adoption rate, and hope beyond all hope that the public at large never becomes privy to it.
Bitcoin is Kryptonite to the Empire of Chaos. It is one of the factors weakening the stranglehold that the King Dollar Kraken has on the financial world. Bitcoin is not just a major blow to the dollar. It is a blow to corrupt governments and their fiat currencies around the world.
Thanks to Roger Ver, The Guerrilla has become a Bitcoin disciple. He will be spreading the gospel of crypto currencies by welcoming Roger Ver onto The Guerilla Economist Radio Show on Friday, January 22nd. There, Roger will detail the power of Bitcoin to you, The Guerrilla’s loyal listeners. Tune in with pad and pencil in hand and be ready to take notes. Roger will teach us how to leverage the power of Bitcoin and be part of the Currency Revolution. Godspeed.