Over the last couple of weeks, everybody has been weighing in about Bitcoin, the digital currency that might be the money of the future, or a bubble bursting right in front of us. After being worth only $30 in March, on Wednesday, Bitcoin reached an all time high of $266, then plummeting to just over $100 in a few hours, and now stabilizing around $120. When Bitcoin’s price started to increase unexpectedly, it became the one thing everybody in Silicon Valley was talking about. (For those who don’t know what Bitcoin is, this video explains it perfectly in 3 minutes).
The Winklevoss twins are the ones who originally had the idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.
The next question that may logically follow is, “do I really need a Valcambi CombiBar Gold payment system; will things ever really get that bad?”. Well, the obvious answer to that is “I sure hope not”.
The alleged problem is that when buy bitcoin without id surges in value people stop spending. What kind of sense does it make to spend $10 worth of Bitcoin on beef jerky today if those Bitcoins will be worth $20 tomorrow? It’s exactly the opposite problem of hyperinflation. What sense does it make to save $10 today if the dollar buys half as much tomorrow?
Here’s how I interpret these events. Statists base their worldview on headlines, not on data. So for them DDoS attacks is something scary hackers do that shuts down websites of banks and government agencies. They don’t actually know hat it is. And they assume that because their Statist institutions seems powerless against the onslaught of these mysterious attacks, that for some reason other hackers must be powerless against it too. Hardly! I’m sure Silk Road, like Pirate Bay and all the others have contingency after contingency built into their site to prevent being shut down so easily.
The FBI was able to buy drugs from Silk Road on several occasions. They purchased ecstasy, heroin, cocaine and LSD. Each time they would try and backtrack the shipment, narrowing it down until they hit pay dirt. They tracked down several of Silk Road’s servers including one that was out of the country.
NOTE: For security reasons,due to the fact that hacking is a big crime,don’t hack money into the Liberty Reserve account you use to withdraw your funds.