scratch-mark

Dispensing with Ayn Rand Statism—with its Concrete Bound Mentalities—and Typical Ignorance Regarding Bitcoin

I’m not going to go all bitcoin crazy geek on you, but yesterday, I posted something that only some of my eclectic collection (colleclectiction?) of readers are interested in.

However, as is my way, I’m principally interested in engendering particular interests among those who, at any particular time, aren’t particularly interested in the slightest. I’m a persuader, more than I am a dissuader—just because I blog my interests more than my dissinterests. I can see the comments and emails already: “a few months ago, I knew nothing of Bitcoin, wasn’t interested….” I know that will happen. Always does. It’s a big part of my drive.

…So it is that my story always goes; and what keeps me always going.

One FB follower, Mike Schneider, shared my post, and had this to say, in the blockquotes that follow. It’s very unimportant in particular, because the number of folks hubristic-ignorant on Bitcoin are legion. On the other hand, because there’s so much ignorance—from innocent to hand-waving statists, like Mike—this load of stupid shit is just as good as any load of stupid shit to illustrate stupid conservative shit.

I warned my friends to stay away when it was 1.1, then I warned them to stay away when it was .8, and now I’m warning them to stay away when it’s under .5. The rest of this year I’ll be warning them to stay away when it finally blows back under .3 and then .2.

1.1., .8, .5, .3, and .2…relative…to what? Is he warning people to stay out of dollars too?

Purchasing Power of U S  Dollar
Purchasing Power of U S Dollar

So let’s get this straight from the outset. In dollar-relative terms, since the advent of Bitcoin in 2009, it’s gone from $0 to $1,000, and right now, back to $450. And this is a problem, over the space of five years? It’s important to understand that Bitcoin is a currency, proven as such in international commerce, now (you can buy plane tickets, hotels, tours, and all manner of goods). It has been a huge and successful hedge agains the fiat dollar, just like gold: only better.

So, fucktard seriously? You can decry and shame the people who bought Bitcoin with dollars at $450 to $1K, but don’t salute anyone of the more millions who bought in at $.01 to $449, still flush (to the tune of millions for many) in dollar terms? I know why, but the interlocutor is tilted to the hilt in moron hubris, chock full of unearned and unwarranted confidence, and surrounds himself in people that only stroke him, just like those he surrounds.

Since apparently, the dollar is something to treasure over Bitcoin, how sound is the dollar? The previous chart dealt with what’s euphemistically referred to as “inflation.” It’s euphemism for State theft, a sophisticated form of coin clipping that involves elites in suits giving speeches widely publicized, to pet you. Here’s one dealing with the dollar vs. gold, which explains why Discovery Channel is now filled with gold mining shows.

USD 1997
USD vs. Gold 1997 to Present

But wait! how about Bitcoin vs. Gold? Well, there is speculation, some of it rather objective as to which cases get advantage. This, of course, is predicated upon a clear understanding as to what Bitcoin really is—something I can’t concede to the interlocutor, here, as you’ll soon see.

BTC 2010
BTC vs. Gold 2010 to Jan 2014

So, apparently, Bitcoin is dumb because it went Tulip Mania against the dollar, and has pulled back to a perhaps more sane level, for now, but only in relative terms of dollars—all the while more and more folks are buying and selling goods and services in Bitcoin start to finish. With hundreds and thousands entering the market daily—and to play, you have to buy or get paid BTC—volatility is to be expected. That is, if you’ve actually been a day or floor trader— and not just someone in mom’s basement reading Rand and theorizing on Randian Internet places (You really have to read Scott DeSalvo’s abjectly ignorant comments at that link—quintessential Billy Beck, Randian, sycophant regurgitator)—you kinda get how markets work. You begin to understand how an entity like the SEC can’t possibly keep up with any of it, and only does the odd prosecution to keep you ignorantly, blissfully, comfortable. I digress.

Let’s continue with the ignorant sycodouche.

SO WHY WILL THAT HAPPEN? Due to something very simple that this primer will not tell you: The world is going is to be flooded with Bitcoin clones. E.g., Litecoin, Dogecoin, etc. There are only handful now but very quickly it will be dozens and then hundreds. Since none of them are backed by either precious metals or government mandate, they can only claim to have numismatic value; i.e., scarcity value. But while the amount of any *particular* Bitcoin-like currency cannot inflate, nothing prevents an inflating number of *clones* — and thus they will all drive to zero in exactly the same manner as the stock-exchange share values of bankrupt corporations.

Argumentum libero, I’ll call it. Way back, someone told me that libertarians can often be the worst fascists (fascism is a state-corporate hybrid, the US being the most important fascism of all time). Why? Just read the foregoing again. Here’s a “libertarian” telling you that the problem is that nobody is forcing one single protocol upon you, and so beware: there’s heightened risk, because there’s no decider. …I now have heightened respect for the one who told me that about such “libertarians” 22 years ago.

So be afraid: there’s a completely free market here, even though Bitcoin has about 99% of it, so far. Be very afraid. We’re going to be flooded with alternative options. Don’t even bother to jump in and learn anything along the way. The State and its fiat currency are your guiding light and the standard of measure in the “libertarian’s” eyes. All these options? Go with the State fiat. Libertarians. Gotta Luv ’em.

They’re actually Shiite Conservatives, but I’ll close with that.

…And, after all, what will your “libertarian” “friends” think, and those who always expect you to like and comment the same way every time, like on Billy Beck’s Facebook? So, if you do wade into Bitcoin, go stealth. You don’t want to be excommunicated by the “liberty lovers.” They’ll do it quicker and more brutally than you’ve ever seen, channeling “liberty” in the process.

“Liberty” is very serious business.

…Not to beat the drum—OK, I am—like Beck, at heart, his sycophant, Mike Schneider, is a statist. The only “distinction” is that they read Rand (the Bible), so they know what’s right for everyone. Because Rand said so, gold is the only real money…and they do the equivalent of card trick slight of hand to advance that, while not telling you about their fundamental belief in her doctrine: Tangible. Concrete. Mindless—ironically amongst a philosophy where her best work was literally quantifying the mechanisms behind conceptualization and abstraction (Introduction to Objectivist Epistemology). Forget about the guys right now mining rubies from hard rock in Iceland—where ice sheets have retracted for the first time in modern history. What their concrete-bound, chipmunk brains don’t get is the difference between gold, diamonds and rubies, and a singularity. They are the equivalent of folks who lafed their asses off at the first automobiles and lafed more with each shut down of hundreds upon hundreds.

OK. Now more presumptuous ignorance.

What’s Enron worth these days? Zero. But the issued number of common stock shares is fixed — they can never inflate; and they’re all still available out there for sale on the pinksheets somewhere. Stock-trading software is everywhere. So, why aren’t savvy anti-statists adopting Enron shares as currency? Because they are fucking worthless; that’s why; and promoters would be laughed off their soapboxes if they tried to pitch it.

There’s no global trading platform seen to by millions in time, effort, and massive collective CPU collaboration to trade “worthless” shares in BitEnron. Really, one sentence is all that abject stupidity is worth. By now, you should suspect that Mike is too stupid to breath air, really. Or, he ought just STFU and mind his place.

The very biggest ignorance surrounding Bitcoin is the inability of so many to understand how an asset/currency, and THE payment system, are inexorably ONE—which is what gives it value, along with the transparency that’s inimical to such no-leader systems. Chew very hard on the implications, and consider that the payment system is comprised of a global network of people who care, and who have a stake, and it’s millions of nodes, now. It is precisely that the currency and transfer/payment system are transparently one, and inexorably one, that gives Bitcoin value that now millions of people agree on unanimously. I posted this on Facebook earlier.

Voting Update. 100% Unanimous, or Nothing. No Force. No other form of voting is morally valid, except as by contractual agreement—where you actually sign up, not the nebulous fallacy of a “Social Contract”—where you agree beforehand to comply with some majority or super-majority decision, such as in corporate boardrooms—or marriages, where I believe females automatically have a 2/3ds majority.

Who controls the Bitcoin network?

“Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can’t force a change in the Bitcoin protocol because all users are free to choose what software and version they use. In order to stay compatible with each other, all users need to use software complying with the same rules. Bitcoin can only work correctly with a complete consensus among all users. Therefore, all users and developers have a strong incentive to protect this consensus.”

Do you understand? Bitcoin works by vote, and it’s 100% unanimous, or it doesn’t happen at all—or some nodes drop off, if they don’t wish to abide. This is pure anarchy.

But Mike Schneider, just like 100% of the libertarians I’ve been dumping from my circles right and left lately, are just too statist fucktard conservative to understand basics, anymore—even with all protestations to the contrary.

Wanna see more idiot? OK.

— A Bitcoin has all the value of an Enron share without ever having had a once-profitable corporation backing it in the first place. So, why does it appear to have greater-than-zero value right now? Because it’s being hyped; and there is permanent industry devoted to selling nothing for something to suckers. You know enough to not take Enron shares in exchange for the dop-, er, shoes you’re selling because you can throw “enron” at a search-engine and know it’s valueless. But for some odd reason many of you out there are willing to trade material assets away for what is essentially the same stuff provided there’s no history of a dividend-paying entity going tits-up being associated with it.

…Those “material assets” of which he speaks? See the charts up top.

See, Mike, like Billy Beck (and many others in my former circles), is a conservative statist. They pretend much to the contrary, but it’s just not so. I’ll close with words for conservatives.

But let’s have more lafs, first.

E-gold, island shares, floating cities, Moller Skycars — all the ridiculous, libertarian-fleecing scams of yesteryear soon to be joined by another. Give the level of social media indulgence of this nonsense, the level of butthurt upon collapse is going to be epic.

Be conservative. Don’t try anything just to see if it takes off, and certainly don’t “fleece” anyone that might share your vision and appreciate you giving it a go by doing the footwork. After all, in Mike’s world, all you have to do is be right and conservative, and you can’t fail. I’m sure he’s just waiting for his opportunity. But conservatives never create anything, by definition. They only reenact. Over and over and over and over. It’s a comfort zone thing.

Only go with what the State has forced, with its monopoly-granting powers…all the while you heckle the people actually doing something, trying, succeeding, or failing, but trying—rather than moving fingers on the Internet all day like a pip-squeak and a clown all in one. ….Oh, wait, I was saving the bit about conservatism to the end.

Note that this NOT an argument for government-run fiat currency or against the idea of electronic money.

It is an argument against uncommoditized currencies.

“It is an argument against uncommoditized currencies.”

And so we get to the essential conservatism at the root, as if it’s not just dripping with Beck-esque conservatism start to finish. Full disclosure: the gold standard ought to have been ended many decades earlier, as it was merely a “fractional gold ‘reserve,'” replaced with a “fractional fiat reserve.” We ought to have been done with that conservative fantasy decades earlier, so that by now, we could be laughing at their concrete bound-ignorance for decades, by now.

Understand: what people mutually agree to as a medium of exchange is the only thing of importance, ever. Statist conservatives, many “libertarian” ones, above all, wish to impose a monetary system upon you that harkens back to the days where you had to save for years to buy a horse and there was no such thing as selling your future productivity or labor now, when it matters most (credit and money creation). Actually, debt as money (debt is money) is my own chief concern about Bitcoin. Without rational and sensible credit markets (the most beautiful way to mine money—in human ingenuity), things could be fucked. That said, I have not as yet looked into the potential of debt markets in Bitcoin (offhand, it’s like loaning people cash, and they don’t have any way of enforcing a judgment, so trust and reputation would be key).

…I’m coming to the persuasion that the biggest problem on earth isn’t really commies and socialists. It’s conservatives, whether they be commie conservatives, socialist conservatives, or “conservative” conservatives.

Conservatism isn’t an ideology. It’s more of a perpetual iciness, so everything moves slow. Conservatives are essentially nostalgia bound. They want it to be like it was, in spite of the fact that today is not like yesterday; and every day henceforth, it will be less like it. And the pace quickens. I loath them all, more and more each day—as fast as humanity marches forward in all its ugliness in experimentation. I’m at the point where I feel more sound amongst a bunch of drunk girls doing duck-face on Instagram, than I am with any kind of conservative. The girls will be laughing at their silliness in a few years. Conservatives will always be conservatives, defending duck-face for millenia to come.

You can embrace the global, forever, rapid change experiment with no guarantee, see what works, waiting for another day for something that works better; or, you can be the blight of planet earth: a fucking conservative.

Worse than commies since 2000!

Update:

Bitcoin Puts the Guy in a Mud Hut in Zimbabwe on Equal Monetary Policy Footing With the Most Coiffed & Suited Zurich Banker

Richard Nikoley

I'm Richard Nikoley. Free The Animal began in 2003 and as of 2021, contains 5,000 posts. I blog what I wish...from health, diet, and food to travel and lifestyle; to politics, social antagonism, expat-living location and time independent—while you sleep—income. I celebrate the audacity and hubris to live by your own exclusive authority and take your own chances. Read More

36 Comments

  1. Charles Q on May 18, 2014 at 21:05

    Bitcoin gets an “A” for cryptography and an “F” in basic economics/monetary policy.

    Basic economics is supply and demand.

    When the U.S had rules to match supply and demand the U.S dollar was stable.
    http://pricedingold.com/us-dollar/

    Conservatives loved Milton Friedman when he talked about economic freedom. They got lazy and they outsourced their monetary policy thinking to Milton.

    Therefore, when Milton thought the U.S should get rid of the dollar/gold link then that’s fine. When Milton thought the Fed should increase the supply of dollars at a constant rate of 5% then that’s fine. The problem is this goes against the basic law of supply and demand. If the public demands a 10% increase in U.S dollars but the Fed only print 5% more you get a monetary deflation. If the public demands -3% less dollars and the Fed prints 5% more you end up with an inflation of 8%.

    Libertarians love Ayn Rand, Rothbard, etc when he talked about freedom. They got lazy and they outsourced their monetary policy thinking to Rand, Rothbard, etc. Hence the difference in opinions on monetary policy among libertarians.

    Many libertarians love Bitcoin because of the freedom but they don’t understand basic law of supply and demand.

    “Bitcoins are created each time a user discovers a new block. The rate of block creation is approximately constant over time: 6 per hour. The number of Bitcoins generated per block is set to decrease geometrically, with a 50% reduction every 4 years.”

    Wow, this really matches supply and demand.
    Lets set supply to # per hour. This makes sense.
    Then for some reason every four years lets do a 50% reduction.

    This is the reason why Bitcoin will 100% fail. It will never be stable in value.

    Eventually a cryptography will figure out supply and demand.

    Matching supply and demand is easy. If the creator or bitcoin just studied “pegged” currencies and “tracking” indexes and etf’s they would of at least received a “C”

    • Dan on May 19, 2014 at 06:08

      How is demand not being met? I never understood this.
      If demand for bitcoin increases and there is no available inventory at price X, then the person on the demand side pays more.

      And because the demand has increased, whereas it took 1 bitcoin to buy a pizza it may now take 1/10th. Where is the problem here? All parties are well aware.
      Or they get burned, this is the same if you buy gold or silver or anything else of similar nature.

      Why do you think bitcoin needs to be a stable monetary system?

      “Wow, this really matches supply and demand.”
      Perhaps I understand now. You prefer to press print to “supply” the “demand” and keep the “value” “stable.
      What your really saying is demand cannot be artificially met and that scares you. Don’t be afraid.

    • Richard Nikoley on May 19, 2014 at 06:50

      Charles Q

      First of all, nobody has said there are no flaws in the system. Some have already been identified and fixed and the fixes have been sound enough that enough nodes adopted them as to make sure everyone adopted them. No central authority.

      That said, I don’t necessarily agree with you. Monetary “policy” in BTC is merely what everyone on the network agrees to. You are arguing policy from the perspective of a central bank, i.e., a singular authority that then forces it upon all users.

      Here’s something that speaks to your concerns:

      http://www.economist.com/blogs/freeexchange/2014/03/bitcoin

      Because BTC is so radically different and has never been tested in a global economy as THE primary medium, rather than an as-yet minor medium on its own (some people are doing significant trade in goods and services in BTC already), I don’t think anybody knows how things will shake out. Moreover, all thinking along these lines seems to emanate from a notion of “economic growth,” i.e., the notion that economies must always be “growing,” rather than merely expanding or contracting in reaction to the amount of trading activity, number of players, etc. People seem to equate personal growth (deeper understandings, better relationships, more knowledge, etc.) with economic growth (increasingly more stuff for less work) and I think that’s fallacious, and to such an extent that personal growth often depends, on an individual level, with a deemphasis on economic growth.

      Rich in another way.

      We’ll see.

  2. Itchy Wmd on May 18, 2014 at 21:33

    Nothing scares the masses more than seeing those who are free…

    Most will give lip-service to freedom – they are all for it as long others are making choices that they approve of. Do anything outside the norm however, and you must be stopped!!!

    Anyway, I’m new here. Great blog, Thanks..

  3. Johnson on May 18, 2014 at 23:53

    Your last few paragraphs are an unnecessary rant. Being conservative doesn’t mean never taking risks, rather just suggests avoiding particularly bad risks where the odds are low… which doesn’t seem worse than Communism unless you’re a commie or a crackpot yourself, or both.

    • Richard Nikoley on May 19, 2014 at 06:52

      Johnson, I know this.

      The rant isn’t directed at conservatism, per se, but at political and public policy conservatism.

  4. marie on May 19, 2014 at 00:20

    When someone starts comparing bitcoin to a stock, any stock, I stop listening. They have no clue about what’s an investment, let alone about what’s a currency.

    If apples were accepted as payment for many other goods, they’d be a currency. If the price of many other goods was fixed in apples, they’d be a strong currency.

    The more places that accept bitcoin, the stronger it becomes. This isn’t speculation, it’s the nature of currency -the early ups and downs are the stats of sudden expansion. The only ‘speculation’ then is whether bitcoin will continue expanding or not.

    • LeonRover on May 19, 2014 at 15:02

      Has the recent failure of the bitcoin exchange in Japan been fixed ?

      I have not seen that reported. There seems seem to have been losses of $m 10’s.

      The other potential for statism of G8 or G20 style will happen if large fractions of economic activity appear to be undertaxed when expressed in $, £ or Yen.

      Expect a problem also when the “dark internet” takes an interest. Or if porn, of a particularly virulent nature begins to be exchanged.

      “Hey Honey, take a walk on the BitCoin de Rue” and cheche déyé mwen.

      LeonRover

  5. SteveRN on May 19, 2014 at 00:41

    I do not see why Bitcoin would be deemed any less viable than any of the current fiat currrencies, who’s value is only in the faith people have in the government baking them. In that sense, I guess I like the idea of a fully PM backed currency better. I also like gold and silver. but, maybe I am just stuck in a old mindset, my lizard brain likes something I can hold and touch. That being said, i do not expect faith in the dollar or any other fiat to last for to much longer. If you think there is value to be had in Bitcoin, since I value your opinion, I will begin to explore this a bit more. I see no reason to not start dabbling in it a bit. It sounds like I can buy small fractions of a bit coin at a time, 1/20th or so. No different than putting away $100 each check for purchase of silver ( I think it has a better upside than gold, as it is in more demand than gold for industrial use, and stocks of it are being used faster than they are being mined.). Both are still a risk, but what is not. I can understand arguing against bit coin, but, at the same time, you have to see it has POTENTIAL, why not put a few dollars in now, if you are wrong and it works out, huge return on a small investment, and if not, you can tell your grandkids a story about electronic currency they will never belive.

    • Richard Nikoley on May 19, 2014 at 06:17

      Nice attitude, SteveRN

      Dabble, see what happens. I believe the lower limit on buying BTC is a function of each exchange’s minimum transaction size. In terms of sending or receiving directly, that’s currently at 5-6 decimal places, I think, but could be upped in the future, so long enough agreed to it.

  6. Dan on May 19, 2014 at 00:57

    “I’m coming to the persuasion that the biggest problem on earth isn’t really commies and socialists”
    an N=1 observation from a former conservative. Close “progressive” friends of mine are generally that way because they just cant bear to be/vote conservative. I wonder how many progressives are this way because of this same reason.

    Nearly always more open to liberty based ideas and approaches as well (probably why Ron Paul rocked the student scene which is a traditional lefty breeding ground). Most have themselves a non negotiable issue or three that keeps them from making the jump across though.

    Re the fucktards share. Measure your wealth in ounces (and soon for me BTC).

  7. snakes on a plane on May 19, 2014 at 03:14

    There have been plenty of times in history where there was no government currency. Many banks created private currencies. More often than not however the value of the currency was debased either by the value of the bank’s loans proving to be worthless or the banks issuing currency not backed by loans at all. Hence the government currency and bank regulations we have today.

    Bitcoin however seems immune to such debasement. I am sure there must be some weakness it can be exposed to but I know too little of the currency to speculate more than this.

  8. snakes on a plane on May 19, 2014 at 03:29

    The best currency of all is your good character and trustworthiness. I’ll take a good man’s word over fiat currency any day. Problem is there are far too few good men – I fear they died with my grandfather’s generation.

  9. Charles Q on May 19, 2014 at 18:08

    “The price of gold remained remarkably stable for long periods of time. For example, Sir Isaac Newton, as master of the U.K. Mint, set the gold price at L3.17s. 10d. per troy ounce in 1717, and it remained effectively the same for two hundred years until 1914.”

    http://www.nma.org/pdf/gold/his_gold_prices.pdf

    Look at the first chart below

    http://pricedingold.com/us-dollar/

    Do you see hundreds of years of stable money?
    During this time there were various different matching supply of currency to demand for currency but they still produced stable money.

    The reason people are look at different alternatives to the U.S dollar is because of the volatility of the dollar. If you’re a business you cannot create long-term contracts if the currency is constantly changing.

    Why not accept a high standard that $1 on 5/19/2014 is worth $1 tomorrow and $1 one week from now $1 one month from now and $1 one year, ten years, etc. It’s been done before.

    Or 1 crypto currency unit on 5/19/2014 is worth 1 crypto currency unit tomorrow, etc

    The U.S went from a tiny country to the biggest in the world and there was a tremendous increase in U.S dollars but the dollar was stable most of this time because the supply was increased and during time of decreasing demand the supply was shrunk on a real-time basis.

    Study the different mechanisms the British and U.S. used in the past to match supply to demand. Study how the Chinese have kept a peg to the U.S dollar on a real-time basis and how Bulgaria has kept a peg to the Euro on a real-time basis. Study how the SPY index is able to track the S&P 500. Study how the GLD is able to track gold relatively well on a real-time basis without holding any physical gold and a tremendous increase in the number of GLD shares.

    Moving from stable unit of account to volatility has destroyed the family unit. The family unit used to be able to calculate their food cost and know that next month and next year the costs would be about the same. This allowed one parent to stay at home and raise the children. Parents now send their children to daycare aka grade school and high school because they both have to be a work during school hours. Minorities where destroyed because their wages never kept up with the inflation.

    If Bitcoin or any crypto currency is to take the next step where you can start getting paid in that unit then the volatility has to be close to zero. If not you will still have similar problems that we see today.

    You have to separate the good crypto features that commies hate and that people in Zimbabwe would love from the crappy money equation.

    There’s a reason why this Bitcoin equation produces crappy money “Currently there are over twelve million bitcoins in circulation with an approximate creation rate of 25 every ten minutes. The total supply is capped at an arbitrary limit of 21 million, and every four years the creation rate is halved”

    Just like Greenspan, Bernanke, and Yellen doing whatever they feel like produces crappy money.
    May we live in interesting time not just this interesting.

    Now for some insanely talented people

    http://www.youtube.com/watch?v=V7zQosGpEZM

  10. Richard Nikoley on May 19, 2014 at 08:22

    So Mike, the guy from the post pipes in on Facebook. For some reason, he’s afraid of engaging in comments on the blog.

    “Q. How much of that garbage do you own, and how far down the hole are you right now?”

    A:

    Thanks for exposing your ignorance once again.

    Own a car? How far in the hole are you?

    Clothes? How far in the hole?

    Electronics? How far in the hole?

    And so on. Each of those questions are abjectly stupid, unless you’re talking to someone who trades in automobiles, clothes, or electronics. But most people don’t buy a car with dollars to make dollars, or clothes, or electronics, or any of the other millions of things people buy to use, consume, or make money by other means, such as the computers I’d buy for my office personnel that will be worthless in dollar-asset terms in a few years, but have paid for themselves over and over and will continue to do so.

    You simply expose your Beck-Randian ignorance over and over. Rand knew nothing of actual entrepreneurial business, nor risk taking. She was a fucking artist.

    You dismiss MATHEMATICS by means of philosophy. Such a marvelous exposition.

    So, to help you with your ignorance, let me put you on notice that my BTC is not for sale for dollars. I never got into this to speculate against dollar value or any other fiat currency. That could change, if it became interesting enough. I bought about 1/2 BTC a few months back, with dollars. Not sure, but were I to sell it for dollars I’d be down somewhere between $50-100. But I have no such intention, nor have I the slightest concern, such as when I buy a car, my interest is in using that car, and I have not the slightest concern for its depreciation in dollar terms—which is a sure thing, unlike BTC.

    Since then, I’ve received a few fractions of BTC from readers, as well as selling a few items from my garage on Craigslist for BTC. Right now, there’s lots of things I could purchase with that BTC, including airfare, clothing, and lots of other stuff.

    My intention is to gradually expand my acquisition of BTC for goods/services I perform, including an option to pay for my vacation rentals in BTC. I have no intention to use those BTC to purchase dollars, only other goods and services.

    There, your gobsmacking dumb ignorance has been cured, for all the good it will do which is zero. Par for the course for a Randian conservative statist.

    • marie on May 19, 2014 at 09:11

      Yes, sounds like another one trying to treat a currency like investments or goods/services, whose value has to be defined by…..a currency.

      They don’t see the snake eating it’s tail there, you’re wasting your breath.

      Or, wait, such gross malins are actual currency traders and speculators, that’s why they are focused on the currency exchange rates of bitcoin?
      (yeah, I don’t think so either).

    • Richard Nikoley on May 19, 2014 at 09:31

      Here was his reply in FB over that comment.

      “So you do own it, and are in the hole. It is dishonest of you to refrain from disclosing that to your audience while promoting it.”

      Told you. For someone who dismisses modern tech innovation carried out by some of the smartest people on earth, on the basis of the fiction writings of a mid 20th Century artist, what do you expect?

      I banned him from my FB. Now, if he wants to come here and face the fire, it’s his only option, because I certainly won’t be caring what he posts on FB to his small handful of sycophants.

    • Richard Nikoley on May 19, 2014 at 10:00

      “Or, wait, such gross malins are actual currency traders and speculators, that’s why they are focused on the currency exchange rates of bitcoin?
      (yeah, I don’t think so either).”

      No, far from it. See, they decry that too, in spite of the fact that in spite of the fact, millions make and lose a lot. In general, professionals tend to either eek out, or make a killing, while amateurs tend to go bust eventually. But free markets like that are a problem for libertarians—as though the winning and losing are all because of government regulation of markets, or whatever other tin-foil-hat thing their momma’s basement mentality is all on about.

      They don’t do it because it’s a scam, see? It’s not that they couldn’t. They would if they wanted. It’s easier to quote from the fictional character John Galt—from momma’s basement. It’s Dunning-Kruger.

      And their largest contribution is to mold other Dunning-Kruger types, just as sure of themselves.

  11. Howie on May 19, 2014 at 08:41

    For westerners, Bitcoin is a neat experiment with a lot of promise. For folks in developing countries who have experienced fiat currencies at their worst (e.g. Zimbabwe’s trillion note), this is a Dogsend. Imagine the revolution for the small farmer who will eventually use his cell phone to send money using SMS text (developers are working on this) .

    • Richard Nikoley on May 19, 2014 at 08:46

      Howie

      You win my smart man of the day award.

      Took the words out of my mouth. In fact, I just published a comment where I had intended to say much the same—about the leap frogging ability of the 3rd world—but forgot, and as soon as I hit send, I saw your comment, as though to rebuke me for such an oversight.

      Yes, BTC actually puts the 3rd world on equal footing. Completely equal. A guy in a mud hut in Zimbabwe on exactly equal monetary footing as the most coiffed and suited Zurich banker.

      Brings tears to your eyes when you consider the implications.

  12. Mark Plus on May 19, 2014 at 08:49

    These charts about the dollar’s alleged loss of “value” over the past century don’t mean anything. We live vastly better in real terms than Americans a century ago, and today’s pocket change can buy goods and services which didn’t even exist as ideas then, like generic prescription drugs (statins, ACE inhibitors, etc.) which have made middle-aged Americans much healthier on average. Refer to economist Brad De Long’s essay, “Slouching Towards Utopia”:

    http://home.cvc.org/bryant/delong%20chapter%202%20wealth.pdf

    • Richard Nikoley on May 19, 2014 at 09:24

      “These charts about the dollar’s alleged loss of “value” over the past century don’t mean anything.”

      That’s hilarious. Another person who can’t beat his own ignorance out of a paper sac.

      Clue: I was meeting them on their own terms, dumbshit.

  13. alphamale666over9000 on May 19, 2014 at 09:01

    Damn, site was down all day and I wanted to read it so much but couldn’t very glad that it is up again i love you work ok time to read

  14. Woodchuck Pirate on May 19, 2014 at 11:04

    The act of telling the truth in 2014 is commonly regarded as casting aspersions, upon the status quo human life-forms coiled in statist collective ego poseurism(s) of choice. These poseurs demand respect for their aversion to principle(s), for which I return zero. Let them strike, venom is no confrontation of truth. It is best to discard them entirely, except for the reduction in comedy and creative license exercised in practicing the virtue of selfishness. In 2014 I have embraced one intent and that is summed “Anarcho-Capitalism Or Else”.

    Me thinks 2014 would be an awful burden to endure should I not part with fiat currency as soon as possible. My body is 55 years old and it appears I will endure fiat slavery (not wage slavery) as long as I need to exchange goods and services, while maximizing my efforts to withdraw from civilization. The prognosis for freedom is dismal at best, per the reality that 99.99% of the human race remains pure scum by choice, petitioning the brute force of government to get what they want. Surely the state will dispose of the herd in large enough numbers to compete on the international landscape of fascism. Why else would the characterization of every national government be so homogenous? However the genocide has distinctly different meaning to folks such as myself homesteading, versus those avoiding sustainability in cities.

    Wealth is not income, and the relationship of sustainability to fiat money is discovered only in consideration of durable assets. It is not enough to embrace anarcho-capitalism without minimizing the leverage of living by fiat currency(s). No gods no masters. I strive to reject faith in all forms. I see no evidence that civilization is ever sustainable. I see no evidence that fiat currency is ever sustainable.

    The absence of evidence for one argument does not constitute a scientific negative finding, and of course does not constitute proof for an alternative argument. The collectivists (statist or any other brand) are anxious to sacrifice any and all to their story, based on an argument of ignorance, no matter faith in science is not science. Initiating force against individuals establishes the lowest bar, and is status quo in all civilizations, past and present. Fiat money is always intrinsic to status quo.

    After stating these (few not all) underlying premises, I have one question to facilitate alleviating my ignorance of bitcoin:

    1) What protects bitcoin from being destroyed by statism?

    Woodchuck Pirate
    aka Raymond J Raupers Jr USA
    http://www.woodchuckpirate.com

    • Richard Nikoley on May 19, 2014 at 11:14

      “1) What protects bitcoin from being destroyed by statism?”

      See part one where I cover some of the futile things they could do (outlaw its use, outlaw its open trade—rendering it like a commonly known weed, with the same effect. Can’t kill it, only slow it down).

      The only other way, and I mean the ONLY other way, at this point, would require shutting down the whole internet and all cellphone networks, because 3rd world trading of BTC via text messaging is coming soon.

    • Woodchuck Pirate on May 19, 2014 at 11:24

      Richard,

      Thank you for the redirection. Wow, you’ve been busy. I’ve had my head stuck in the rafters routing pvc plumbing etc for so long I feel guilty to be at the keyboard. I look forward to digging into your post. Thank you kindly for the continuing intellectual diet.

      Woodchuck Pirate
      aka Raymond J Raupers Jr USA
      http://www.woodchuckpirate.com

    • Richard Nikoley on May 19, 2014 at 11:27

      Raymond.

      If you didn’t show up I’d get freaked, have to figure out how to invent you, which would be impossible.

    • Woodchuck Pirate on May 19, 2014 at 12:03

      Richard,

      When I was about 10 years old, my family doctor (Dr Brenner) told me my index fingers were likely broken when I was a baby. I’ve absorbed a lot of force while being invented, and they say nobody likes to watch sausage being made. I’m on the inside looking out of that analogy, a bit like Clint Eastwood in his best movie “The Unforgiven”. There’s no substitute for experience. The psycopaths in charge today have all the power and none of the experience. Freedom will eventually overwhelm them, but not in my lifetime. Focused misanthropy is as good as it gets 2014.

      Woodchuck Pirate
      aka Raymond J Raupers Jr USA
      http://www.woodchuckpirate.com

    • Richard Nikoley on May 19, 2014 at 12:09

      “Focused misanthropy is as good as it gets 2014.”

      I’m doing both, but you have to see my next post, just up, to get a clue about my vision and delight. 🙂

  15. Paul on May 19, 2014 at 11:53

    Wow!

    Once again I come here to read something interesting based on what the subject line says (was curious about Rand) , and instead get schooled in a completely different area altogether (educated on BTC, economics, and currency).

    As with experiments with RS, you have once again led me to the rabbit hole. It is now my choice to enter, and how deep down it I go.

    Needless to say, I’m eager for your RS book, and will be eagerly awaiting your treatise on anarchic economics following posthaste!

    Thanks again, Richard!

  16. Richard Nikoley on May 19, 2014 at 12:20
  17. Wade on May 19, 2014 at 16:44

    Another value of BTC is not only it’s ability to decentralize currency, but other mediums as well. It’s software is amazing. Twister (twister.net.co) is a great example, it’s an alternative to Twitter. It uses BTC’s software to establish encrypted P2P for it’s network. Imagine the potential for a decentralized Facebook replacement. The commies would shit themselves.

  18. Bret on May 21, 2014 at 20:20

    Conservatives, and in particular Republicans and their voters, are the single greatest threat to our nation’s current and future well-being, in just about every measurable way.

    While Democrats and their ilk are honest in their desire to swallow up nearly all of America’s freedom and economic livelihood with endless government and thereby repeat the patently stupid mistakes of the Soviets, Republicans go out and preach free markets and limited government, while in practice delivering crony capitalism and equally (to the Democrats’) big government. And oh, by the way, they also display an impressive penchant for invading countries and replacing their governments (calling these enterprises “wars,” contrary to what the military would tell you), and staying for 10 years despite constant, overwhelming failure. Hell of a party.

    Eight years of the likes of George W. Bush and his contemporary Republican congresses give dick heads like Bill Maher and Michael Moore the opportunity to brainwash more people into hating capitalism. “You see?? These are the consequences of capitalism!” The damaging consequences (what symptoms are legitimate damage, that is) did not happen due to capitalism, of course, but due to the corruption, corporatism, and other aforementioned big government douchebaggery. But that is not the message that many citizens take away from the conversation. The less than basically economically erudite among us (which I often feel is, sadly, most of us) end up concluding that, yes, capitalism does produce income inequality, concentrated economic power in the hands of a few, and so on. Let’s leave that back in the 20th century where it belongs and embrace socialism!

    The only Republican presidential candidate with a shred of integrity for the last 25 years, the great Dr. Ron Paul, was cheated out of his opportunity to win the nomination once the party leaders saw that he stood a credible chance. Filthy, stinking, rotten, corrupt, Democrat-in-disguise PIECES…OF…SHIT.

    And yet almost all self-identified conservatives I ever talk to defend their beloved Republicans vehemently (and hate Obama on a deep, intense personal level), the way John McDougall defends veganism in spite of all the evidence and loathes those rotten lying carb watchers.

    The current batch of Republicans can roast in hell, save for Justin Amash and Rand Paul. I would rather tolerate an unstoppable 50-year streak of Democrats than see another non-libertarian Republican-controlled Congress or White House.

    And you might want to change the last comment in your blog post from “2014” to “2002.” That’s when Bush’s idiocy really started to bludgeon America (and the world) upside the head.

    • Richard Nikoley on May 22, 2014 at 07:07

      Nice rant there, Bret.

      I agree with you in total.

    • Bret on May 22, 2014 at 16:43

      Haha. Once I get going it is hard to stop.

  19. dhammy on May 27, 2014 at 15:45

    Bret, your rant is pure genius. It mirrors my own views nearly perfectly. Thank you!

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