The Coming War on Crypto: 3 Things You Should Know

Craig Huey Economics 1 Comment

If you listen at all to business or financial news, you’ve undoubtedly heard about Bitcoin … but what is it?

Bitcoin is a form of what is known as cryptocurrency.

A new documentary, “Magic Money: The Bitcoin Revolution,” claims, “For the first time in history money is no longer controlled by banks or government, but by the people who use it.”

Don’t be misled by this false statement … or by some of the other false hype about Bitcoin.

Here’s what you need to know:

  1. During the 1800s, many private companies created and issued their own decentralized currencies called scrip – very similar to today’s Bitcoin.

Mining and logging companies in remote areas of the U.S. would pay their employees in scrip … which was then used to purchase goods at a company store.

This practice was memorialized in Tennessee Ernie Ford’s song, “Sixteen Tons:”

You load sixteen tons, what do you get?
Another day older and deeper in debt.
Saint Peter don’t you call me ‘cause I can’t go,
I owe my soul to the company store.

Also, my wife’s family in the 1800s coined their own currency.

  1. Bitcoin isn’t completely worthless … but it’s not going to win in a battle with the world’s central banks.

Why?

Because while Bitcoin has ideals … governments have bombs.

Countries will go to war over monetary policies.

Don’t think for a minute that an agency like the Federal Reserve is going to give up its monopoly on money creation and distribution without a fight.

  1. Some people will make – and lose – money investing in Bitcoin.
  • Some will stay with Bitcoin for too long.
  • Bitcoin will have unanticipated competition.
  • The Bitcoin market in the future won’t be what it is now.

Be skeptical about all the hype you’re hearing about Bitcoin.

More often than not, investment advisors and enthusiasts don’t really believe everything they say publicly…

That said, people will make money … a new alternative currency outside of government control is a good thing … and it’s not going away.

 

What do you think? Write me at [email protected]

Comments 1

  1. The “Blocktrain” technology behind Bitcoin and many other crypto currencies is currently being used in many industries and shows great promise for the future. I believe that this will eventually overshadow the crypto currencies in the long run as a technology that will benefit us all. Allan T. Pollard

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