by Michael Snyder
May 3, 2013
Do you actually believe that the central
banks of the world are going to sit back and do nothing while their
monopoly over money creation is being threatened?
Do you actually believe that the
governments of the world are going to allow a digital currency that
they have no control over to become “the future of money”?
If so, then you are incredibly naive.
Wars have been started over much less.
global elite are very, very sensitive when it comes to the creation of
money, and Bitcoin has definitely gotten their attention. Yes, there have
always been alternative currencies
created by local communities, but none of those has ever been a real
threat to the central banks of the world.
The truth is that Bitcoin is different. It has
the potential to really be something, and I expect a serious move to be made
against Bitcoin before it explodes in popularity.
If Bitcoin was solely a domestic currency, the
U.S. government would have already shut it down long ago. The fact that it
is a decentralized international currency makes things trickier, but without
a doubt right now officials are thinking of ways to restrict the use of
Bitcoin or shut it down altogether.
Bitcoin is already being portrayed as a currency
that attracts criminals involved in such things as tax evasion, drug
dealing, gambling, terrorism and money laundering. In fact,
the Wall Street Journal recently reported that the Treasury Department
has ruled that money laundering rules will be applied to Bitcoin.
But this is just the beginning.
At some point, the establishment will bring out
the big guns. It is only a matter of time. And there are already some major
banks that are shutting down the accounts of Bitcoin dealers.
Just check out what is happening
up in Canada…
Virtex, based in Calgary, is an online
market that matches Bitcoin buyers with sellers, with about $13-million
of trades under its belt.
But earlier this month Royal Bank of Canada
quietly informed Mr. David that it would no longer do business with his
“They shut down our account without any
reason,” said Mr. David, an ebullient entrepreneur with a background
in technology companies.
“They just said we have the right to refuse
service to whomever we wish.”
For whatever reason, many in Canada’s small
but fast growing Bitcoin community are suddenly dealing with the same
problem: The banks have decided they don’t like the cryptocurrency and
they’re shutting down some of the accounts of businesses that deal in
An isolated incident?
But many of those that are closely associated
with Bitcoin know that they are being closely monitored. They know that
bankers and government officials are watching them.
Just check out what
Jeff Berwick of The Dollar Vigilante recently had to say…
If there is one thing that my involvement
with BitcoinATM has shown me very plainly in the last month is that
bitcoin has the direct attention of the governments, central banks and
It took them nearly two decades to figure
out the internet would be their downfall. In this case, it has only
taken them months to realize that bitcoin could end their monopoly on
money and banking.
And they aren’t watching because they like what
Rather, they are watching because they see a
threat that needs to be stamped out.
Robert Wenzel of the Economic Policy Journal
recently suggested how they will attempt to do this…
I continue to believe that the point of
vulnerability for Bitcoin remains the point of exchange between bitcoins
and other currencies. I fully expect government to make a massive
shutdown of these exchanges at some point.
And I agree with him. I believe that a day will
come when those exchanges will be shut down. The powers that be just have to
figure out how to sell it to the public.
So what will happen to Bitcoin once those
exchanges are shut down?
The following is from a recent article
by Max Keiser…
Here’s a thought exercise.
What if all bitcoin exchanges were shut down
by various governments? What would the current value of a bitcoin be?
This is an important question because of the implied outcome of the
current trend by governments to shut down - or prevent the creation of -
The mining of bitcoin would continue but
spending them becomes a problem since there would be no quoted price.
The bitcoin protocol is about mining bitcoin not pricing bitcoin.
There is nothing in the protocol about
establishing a market price for bitcoin; you need a market for that, but
what if all the exchange markets are shut down?
And already we are starting to see Bitcoin being
demonized in the mainstream media.
For example, the following is a brief excerpt
from a recent
CNN article about Bitcoin…
No one really knows who is really behind
Bitcoins, as the creator is just a pseudonym Satoshi Nakamoto.
That in itself should be a huge red flag. I
would certainly not trust my life savings to some mysterious computer
algorithm created by shadowy anonymous characters in a system that
attracts underworld types.
One of the self-proclaimed largest Bitcoin
The name originally stood for Magic: The Gathering Exchange, an online
site designed to trade cards used in playing the card game popular with
the younger set. An exchange based on trading kiddy cards does not seem
like a sound foundation for a monetary system.
There is no government regulating
participants in the system to prevent fraud and abuse. I would not be
surprised if the Bitcoin mining software becomes a magnet for computer
viruses. After all, the tax evaders, drug dealers and terrorists
attracted to Bitcoin would not be likely to cooperate with authorities
when they have been hacked and robbed.
It would be close to the perfect crime to
create a pseudomonetary system that rips off other evildoers. Just be
careful when the bad guys find out where you live.
And without a doubt, Bitcoin is a very, very
Just a few days ago a Bitcoin was going for
around $150. Now it has dropped
But I applaud the creators of Bitcoin for trying
to come up with an alternative digital currency that actually works. As I
have written about
over and over, the Federal Reserve and the other central banks around
the globe need to be abolished.
They have trapped humanity in a debt-based
monetary system that systematically drains our wealth.
We desperately need an alternative.
Unfortunately, I don’t believe that Bitcoin is going to be the solution. At
some point, the establishment is going to step in and try to shut down
When that occurs, what is going to happen to all
of the time, money and effort that people have put into the Bitcoin system?