Is Bitcoin 1929 or DOT.COM Bubble All Over Again?

QUESTION: Marty, is it possible we are witnessing the greatest financial trap to unsuspecting global citizens as they ‘build a digital prison’ as many opine OR is this the perfect monetary system that will give opportunity to impoverished nations to rise out of the ashes?

We see kids, millenials to Gen X, buying it like it’s Thor’s hammer on some Marvel video game yet its consequences are real unlike the Marvel video game coins and so on. This video game is the real deal. Governments are now buying as much bitcoin as they can and I know an individual who bought his house with Bitcoin as collateral.

It is an age old saying, “When something sounds too good to be true, it usually is.” This seems to be pertinent regarding this supposedly perfect monetary system, one that has never been witnessed before.

Who is actually in command of the truth of this now Bitcoin mania and are Bitcoins reborn “Tulips”?

One side delivers compelling conviction that it is financial freedom, the other portrays it is financial armageddon and there appears to be no middle ground in the discussion of it as a monetary system (vs an investment tool).

I welcome any further comments you can make to enlighten the rest of us.

Respectfully,
PH

ANSWER: There are those who are touting that Bitcoin will only rise, just as Irving Fisher was saying about the stock market just before it crashed. Bitcoin is the biggest scam of authoritarian government known to history. Ben Franklin said:

“Our new Constitution is now established; everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes.”

Our illustrious politicians overruled the Founding Fathers, who prohibited Direct Taxation, knowing that it was the path of tyranny and hatred of the rich that pours through every line written by Karl Marx. They implemented the income tax with a Constitutional Amendment in 1913. Ever since we have had class warfare. The Democrats seek to bribe people for their votes, always promising to rob the wealth from one person to give it to another. The courts selectively allow discrimination by class and talent because that pays their salaries. It’s illegal to discriminate against someone for their race, but if they have more money than you, it’s then fair game.

Part of the problem has been the uneducated propaganda against the Federal Reserve printing money and attributing that to the bankers as if it should be in the hands of the politicians. This has distorted the very definition of money. They then blame the Fed for inflation instead of the politicians who love to say that they can spend whatever they want and that it is the Fed’s job to make it noninflationary.

Money functions as the (1) unit of account and (2) as the accepted medium of exchange. It has been the dream of bureaucrats to be able to trace every transaction and ensure they get their pound of flesh every time there is a transaction. We are the enemy. Never forget that. Like the Mafia engaged in a protection racket, bureaucrats are no different. Pay or go to prison.

Cryptocurrency is absurd. Why? We just had two back-to-back hurricanes here in Florida. While I personally have a power generator, the power grid went down, and the internet went down. The stores had no power and could not even take a credit card. If you wanted anything, it was physical cash only. With no power, you could not even go to an ATM to get some money. In Florida, you learn you should always have some cash on hand, just in case.

If even a credit or debit card does not work without power, neither will crypto. The internet was down for over 10 days. All those selling crypto for the government only see their dream of taxation on absolutely everything – even that 16-year-old girl next door who watches the kids so you and your wife can go to dinner. You gave her $20? OMG. That’s why the government has deficits.

Money has been everything from seashells and gold to things of value such as bronze, grain, and sheep skins. When it comes down to durable money, it typically has practical use – utilitarian value. In prison, it used to be a pack of cigarettes, and then it became a pack of mackerel.

Here is a Roman bronze ingot known as an Aes Signatum (5 lbs) of bronze with the equivalent image of one head of cattle. I’m sorry, but money that depends on the power grid and can be programmable subject to a bank -debanking you, is not a sustainable monetary base. This would lead to an economic recession and a restriction on commerce.