Amidst report after report by the mainstream financial press that Bitcoin is doomed, (it’s NOT doomed, but the mainstream banking industry is doing everything it can to scare the masses away from Bitcoin), it is extremely refreshing to see a somewhat more balanced article in Marketwatch – a publication of the Wall Street Journal – that acknowledges Bitcoin as “The Best Performing Currency In The World Last Year.”
Bitcoins are booming. They have doubled in price in the last six months. Indeed bitcoins were actually the best performing currency in the world last year. I ran an exhaustive screen on FactSet, making sure to include everything from the Afghanistan afghani (down 16% against the U.S. dollar DXY, +0.05% ) to the Zambian kwacha (down 42%). Bitcoin trounced them all. The dollar value of each bitcoin jumped 40% during 2015, from $310 to $434. (The currency in second place, the Gambian dalasi of all things, was nowhere near: It rose just 9% against the U.S. dollar.).
At current prices, the total value of bitcoins in the world now tops $6 billion. That’s quite some “fad.”
Bitcoins are hard to get your head around until you’ve used them. (Alec Ross’s new book, The Industries of the Future, contains an admirable section explaining the technology.) But in a simplistic nutshell, you can go online and exchange your dollars for bitcoins, transfer those bitcoins anonymously to anyone, anywhere in the world, and they can then exchange them back into dollars — or leks, or yen, or whatever.
The entire transaction takes place outside of the banking system. No one has to show any ID to anyone. The exchange rate for bitcoins is set by a freely traded market. And bitcoins have value for the same reason that dollar bills and gold coins have “value” — because lots of people think they do, and they know that other people do as well.
What really matters is that the bitcoin infrastructure isn’t controlled by any entity. Not one government, not one company, not even one cooperative. It uses an incredibly ingenious and complex set of programs running on a giant network of independent computers around the world.
Bitcoins are the Matrix. They are everywhere and nowhere. And they’re going to be a problem for regulators.
Because right now the world’s governments are trying to tighten their regulation, supervision and control over any and all transactions bigger than buying a pack of gum.
The article goes on to attempt to convince the reader that banking privacy is somehow bad, and tries to make the case that anyone involved with Bitcoin or cash is doing so with “nefarious purposes.”
We strongly disagree. Cyprus was a test case for wider bank “bail in” implementation globally. In an age when the mega banks are violating laws daily with impunity, and have been given the power to confiscate depositors money, we believe it is more important than ever to be able to keep one’s wealth out of the hands of potentially criminal bankers.
Cash and Bitcoin are both critical to freedom itself.
Yes, they both CAN be used for nefarious purposes. But so can automobiles. Just because one person chooses to vilolate the law and drive intoxicated does not mean that we need to take automobiles away from every person on Earth.
The same logic applies to cash and Bitcoin.
>>You can read the full article at marketwatch.com