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Bitcoins: The Inside Dope

Written by Gary North on December 9, 2013

Reality Check

Today, I interview Bitram “Bitty” Coins, the nation’s leading expert in the Bitcoins market.

GN: Mr. Coins, I am happy you consented to an interview.

BC: Call me Bitty.

GN: OK, Bitty. I want to find out what this Bitcoins deal is all about.

BC: It’s about liberty. It’s about a new international market. It’s about a New World Currency Order.

GN: It’s also about buying 10,000 Bitcoins for $50 in 2009, which are worth $13,000,000 today.

BC: I call this value-added investing.

GN: I call it a digital tulip mania.

BC: I see that you are a skeptic.

GN: You have very clear eyesight.

BC: Maybe I can persuade you otherwise.

GN: Give it your best shot.

BC: Let me tell you about the #1 benefit. You get complete privacy.

GN: Complete?

BC: That’s right.

GN: How does this work?

BC: You go to an exchange and buy Bitcoins.

GN: You mean like Silk Road?

BC: Not Silk Road. The U. S. government shut it down.

GN: Then maybe Sheep Marketplace, Silk Road’s replacement?

BC. It went out of business when someone stole $100,000,000 in Bitcoins — maybe the biggest theft in history.

GN: How did he do this?

BC: Nobody knows.

GN: Will the police catch him?

BC: The police can’t do anything about it.

GN: Why not?

BC: Because, with Bitcoins, you have complete privacy.

GN: So does the thief.

BC: That’s the price of complete privacy.

GN: Then what recourse do the victims have?

BC: Well, one of them said this. “I won’t find this guy. Somebody else will. I assume he’ll be jailed, blackmailed, tortured or killed.” I find this inspirational. It’s 100% privacy at work.

GN: Are these heists a pattern?

BC. Not at all. They are random.

GN: But there are so many of them. Here is a list.

BC: It’s just a cost of doing business anonymously.

GN: Because there are no contracts.

BC: Correct.

GN: Because there are no courts.

BC: Correct.

GN: Because no one knows who he is dealing with.

BC: Correct.

GN: So, if you get robbed, you lose everything.

(For the rest of the interview, click the link.)

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17 thoughts on “Bitcoins: The Inside Dope

  1. Verland Gilliam says:

    It all sounds so confusing, I doubt that I'll buy into it anything more than just another scam.

  2. This is exactly what Tea Party Republicans want – zero government involvement.

    Now, for the rest of us living in the real world… no thanks.

  3. What makes you think the government is not involved? This is exactly how the government works, steels with no paper trail. This is exactly how our last voting machines were got. Bought from a forgien country, pre programed for obama and there is NO PAPER TRAIL to find out anything.

  4. Why do you assume that TEA Party Conservatives (do NOT confuse Conservatives with Republicans) want zero government involvement? On a 100 point scale, 0 = anarchy and 100 = communism, most TEA Party adherents see government somewhere between 10 and 25. Like for driving on the right, stopping for red lights and stop signs and for jailing criminals who steal. Otherwise, leave us the hell alone. Bitcoins are digital currency, but then again, so is FED currency. What's the difference? One is government sponsored, the other isn't.

  5. OK ,so as far as the getting ripped off part by some unscrupulous actor stealing your Bitcoins? How is that any different than John Corzine and his cohort at JPM stealing over a billion from MF Global ? And nobody was charged even after all the evidence was presented ? SO which is the bigger scam and fraud ? Our current crony system or Bitcoin or tiddly winks ? HA HA HA wake up[ Amerika ? you are being massively ripped off everyday and the ILLUSIONS are beyond obvious , they are everywhere you look ,yet you still believe in the system ? WHY ? Congress and your so-called leaders are little more than criminals largely and the few that speak any truth of any matters are villified for said truth? The president and Holder have shown you clearly that they do not uphold any law except their own , which is fabricated out of daily rhetoric and subterfuge. Demand accountability or you will get none! http://www.downtoearthprepper.comj

  6. Nice straw man. The tea party is NOT for "zero government".

    That is an anarchist position, not tea party.

  7. 1baronrichsnot1 says:

    I got some really pretty 5's and 10's the other day from the bank! You know what it said on them? Federal reserve note! That's debt in case you were wondering. The note for a debters monetary system! That means the federal reserve printed it, added it to the balance sheet, then it came to me from the bank. It wasn't marked past due or anything, but should be! When you get one of these suckers, that means the taxpayers owe me the money, they passed that accts recievable on to me from the federal reserve bank! Someday somebody will have to pay it! That would be me and you! You could take it to the window of a federal reserve bank, demand payment, guess what you would get! Yep that's right another federal reserve note! Such is the workings of a debt economy, backed by the full faith and credit of the taxpayers! Notice I didn't say federal gov't. They have no credibility or morals what so ever! We now pay almost 500 billion per year to these money changers in interest!

  8. Shane, the difference between something like bitcoin scams and government scams is only in scale and timeframe. With bitcoin scams, you lose a few millions in a few months. It is the fast and furious. But it is also VOLUNTARY. Only those who want the excitement of the illicit life need apply and then when they get what they deserve they don't burden the rest of us with their stupidity in the court systems, etc. They just eat it and they learn from their mistakes. With the government money scam, it's the long con. And it's not voluntary. And it's very difficult to opt out. And those running it have suits and degrees and uniforms and badges and guns and jails and yes, street executions if they want. So don't go selling freedom short, sheeple. Don't be so easily convinced that there is no valid life outside that which is provided by the rancher who views you as livestock. Because livestock always ends up in the pot or on the fire when its usefulness is over.

  9. justjammim says:

    what!!?!?! Why on earth do you think Tea Party people would want this? Or are you just a dumb liberal who knows nothing about what the Tea Party wants?
    The "Tea Party is for smaller, accountable government and for our politician's to UPHOLD our constitution. We also want a balanced budget and for the feds to quite printing money which is devaluing our dollar.

    You are ignorant.

  10. Shane simply doesn't have the intelligence to understand that the concept of "less" is not the same as the concept of "zero".

    "Less" and "zero" are the same thing in his mind.

  11. Maybe Bitcoins will only ever be a middle-man currency: something you use temporarily to be able to transfer money anonymously over the net. If so, that's good enough. Anonymous payment methods are sorely needed. Volatility won't be much of a problem as long as you can trust the Bitcoins to keep their value for the few minutes the three transactions take (money -> Bitcoins, transfer the Bitcoins, Bitcoins -> money).

  12. fredaintred says:

    all this is another scam on the general public these coins are backed by what? nothing but thin air you send them real money in return you get fake money. these bit coins are backed and guaranteed by who or what entity financially strong enough to do so? not the govt so nobody. These coins are not recognized fiat currency nor do they trade on any type of exchange. buy at your own risk. then think… where do you spend them? who out there accepts them? what bank or financial institution recognizes and accepts them? What currency exchange deals in them? good questions. do what you think is good for you but my money is on reality and facts.

  13. fredaintred says:

    so both are good huh? if I took a handful of bit coins to the local super market and tried to pay my grocery bill with them I should get in return my bit change and go my merry happy way? do you really think that the stores are going to take these things? or even very many online sites? one is a recognized currency that has been the accepted currency for generations but this new star trek virtual money that is backed by thin air and no real financial institution, is worthless. This is a scam.

  14. fredaintred says:

    since there are many people here that are willing to lose their butts over these non secured ''bitcoins'' I think I will make good use of my kids monopoly money and promote it as a new form of currency online I will probably get rich quick off people that will go after it lol.no I wont do that, but that is what is happening here on these worthless bit coins.good luck with that and please come back later with all your whiney sob stories of how you got ripped off ty.

  15. Willythegeek says:

    If it happens over the web, It's traceable and the government will burst your bubble. Read my lips…..

  16. Actually, thin air would be a MORE substantial backing than Bit coins have. At least air physically exists.