The Truth About Bitcoin

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Stefan Molyneux looks at the rise of Bitcoin and discusses it’s history, mining, fees, altcoins, regulatory hypocrisy, worldwide awareness, comparisons to go…

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JonnyLatte says:

Fiat money is borrowed into existence everywhere now so its easier to get through borrowing than through working for it because thats where the money fountain begins. Also the money loses value over time so people expect their debts to be easier to pay over time (which probably isn’t the case if you take interest into account but who knows what the real inflation rates are)

JonnyLatte says:

Money is whatever is used as a medium of exchange. The only way to negate it is to get rid of exchange. That includes central planning as well since if you have anyone deciding who gets what, their political power just becomes the money (we are in that world right now with fiat) Even a resource based economy has money its just that its whatever pleases the robots that run everything under that system that becomes the means to coordinate resources.

aDynoNet says:

Bitcoin sounds incredible. What is holding me back is the imminent threat of government shutdown.

Sal K says:

you’re smart!

Wayne Carter says:

28:53 The first two attempts at a central bank in the United States were privately owed, as is the current Federal Reserve. The Federal Reserve is NOT OWNED OR CONTROLLED BY THE GOVERNMENT!

MagicianCamille says:

227,500 is not “over a quarter-million”, Stefan. ;)

Patrick Levell says:

If you’re a business owner, Bitcoins are less expensive than credit/debit cards.

MagicianCamille says:

Eerie, was just looking into how Bitcoin works earlier today, got confused and gave up. Then Stef does a Bitcoin video.

rumco says:

Money is necessary for an economy beyond a basic subsistence level. No amount of communist propaganda does away with that fact.

MakeshiftEstablished says:

Peerblock has allowed me to use bittorrent without so much as cough by my ISP. I recently made the mistake of turning peerblock off, forgetting to turn it back on, and then downloading something. I immediately got a letter from my ISP concerning the download. I turned it back on, left it on, and haven’t had a problem since. Use peerblock…it works!

George Papageorgakis says:

Bitcoin would bring chaos in the market in the long term cause it would still be manipulated by companies who can offer PetaHashes/sec thus controlling again the market. Dont get fool… all currency systems have the same bugs-holes to exploit… Its just that its new and uncontrolled atm that matters.

sequorroxx says:

Not sold(heh) on the ‘intrinsic value’ requirement for money. Intrinsic is to say from itself, not dependent upon externalities. Value is the subjective preference we each place on a thing.

What’s more, if a thing is money then people value it. So it seems like the ‘intrinsic value’ property is out of place. If I find some thing useful for as a medium of trade but nothing else, I don’t see how that makes it not money.

This is why dollars are money; its losing scarcity but it is still finite.

drlex says:

It’s simple. The incentive is to get rid of banks monopoly on money.

sequorroxx says:

$6.5 million in bitcoin transfer for a cost of 6 cents…

wow.

Brownyman says:

In the world of the human sciences — and I genuinely mean this — you are to Murray Rothbard what Johannes Kepler was to Nicolaus Copernicus.

Congratulations on finally taking economics out of the dark ages, Stefan :)

whoaitstiger says:

Bitcoin and Litecoin are promising. Unfortunately it seems to me many of the other alt coins have turned out to be little more than fodder for penny stock style pump and dump schemes.

MandrakeMoorglade says:

The only people who want bitcoins to become a major currency are the ones who already have some. If you don’t have any, what’s the incentive for wanting it to replace all other currencies?

AllThingsBitcoin says:

Excellent video

zezba9000 says:

Mining “Digital” nothingness, wasting power and hardware for the sake of some arbitrary value is just stupid.

All this will do and “has done” is going to put a different set of people in power that “own” everything. We are to the point where we need to be looking at ways to negate money with out current level of tech.

Frank Flores says:

#Bitcoin has the potential to end the monetary system as we know it, insofar as to demonstrate to people that money is ultimately an idea, intrinsically worthless and ultimately harmful to human endeavor. It is a nothing thing, a set of arbitrary rules that cripples and destroys our environment, our culture and ourselves. Please investigate a resource based economy to learn more about ending the destructive tendencies of the monetary market system.

Dave T-man says:

29:02 that chart is very creative and illuminating.

Dave T-man says:

lol 26:08-26:11 ‘the knows hares are there’

Gunner6000WarZ says:

I’d be interested in this if I could actually turn my Bitcoins into money I could pay my electric bill, car payment, mortgage, and buy food with…. As it sits right now, it just seems like I would have to find a buy willing to “Trade” currency for Bitcoins. There is no way that I can find to just change your Bitcoins back into currency and deposit it into your bank account…. Did I miss something?

ampman76 says:

Pedantic and nit-picky to be sure, but: it ought to be “…from which to send, and at which to receive.”

KW Jackson says:

That’s the benefit of being an early adopter. Read some Falkvinge about where he thinks it might go in value. Or try a calculation of your own: market transactions total value divide by total bitcoin in circulation (or 21 million which is the cap) and find out how high BTC can go.

AntichristDemoncore says:

lol if you don’t pay for power why worry, if I was still in high school I would be putting miners on every computer I could get my hands on. Im glad I mined a bunch before the huge boom.

xanwun says:

Beware of the AMERO!!! It’s comin’ jus’ wait and see.

David Shields says:

Why do you have to go into debt to buy things?

Quantum Prepper says:

Btw with NSA why the hell would anyone want to send money online after the collapse? I would rather not be online and barter using coins in my pocket. Also we treat bitcoin as silver failed. What failed here is NOT silver. What failed was the control structure. We don’t have to find a new currency when silver and gold have worked only until the people allow the greedy to take over.

MrJarth says:

hey stef, can you put that banking consolidation imagine link in the description?
I find that so interesting.

Lee Owen says:

I’d love to get into bitcoin, but my god it’s so high right now, especially when it was only $15 in Q1, and just had a massive crash.

Quantum Prepper says:

Only need one reason not to purchase Bitcoin. It’s a DEBT based currency because of the electricity that requires to touch, feel and use it. You can’t own a bitcoin without electricity and a computer which means you have to go into debt to own the electricity and computer. Why does anyone need another reason NOT to use it. 

ulktz says:

That’s why when silk-road went offline for 3 days, the value of bitcoins crashed 30% right? Please.

MonadTransformer says:

Trust is the key in case of gold, as well. It is possible that people would lose their trust in gold as a store of value, and switch to Bitcoin. Gold may have history on its side, so I do think gold is a less risky investment than Bitcoin… Unless governments start to confiscate it, in which case, Bitcoin would have an advantage, since they cannot easily confiscate information, which Bitcoin is.

MonadTransformer says:

SHTF – like, a dollar collapse? People would have a lot more dollars, and they would want to spend them on something, so that their savings are not zeroed – Bitcoin and / or gold are the candidates. Silver, platinum, oil, real estate and food might go up, too. I don’t think it matters that bitcoins are imaginary, if there is a fixed number of them, and people have the trust in them. Trust is the key. Not tangibility. It is possible that people lose trust in Bitcoin, but it is unlikely.

MrJarth says:

actually the dream i had last night is as real as bitcoins.
Both are just a different arrangement of states.

bdog10123 says:

Intrinsic value by force… I would take toilet paper over the dollar any day.

VoluntaryVirtues0com says:

it doesn’t have intrinsic value, nothing does, although it might have industrial use, and that is legal tender law because the government claims a violent monopoly.

MonadTransformer says:

Well, when you measure something, what you usually do is write down a number. When you measure the height of a building, you just write it down on a piece of paper – say, “6 meters”. Bitcoin is a unit of value of products and services, in that exact sense – it is a number. Gold is more than just a unit of value – it is a physical thing. Moving gold around, in order to buy something, is like carrying around 6 wooden 1 meter-long sticks, and saying “this building is as high as these sticks”.

4twentyproductionz says:

I’m glad you did this video on this subject stefan!

hkweasel says:

I wouldn’t recommend that someone try to use Bitcoin in a SHTF. Hopefully, the world doesn’t remain in a “SHTF” scenario for long.

stonerpanda says:

This presentation doesn’t take into account that the Bitcoin infastructure can barely support what it does now (mostly just buying/selling coins) and would completely collapse if used as an actual currency… and was never intended to be one. It was a proof-of-concept. There are also ethical dilemmas like the fact that the current margin of electricity cost per bitcoin is -400%. blockchain[dot]info/charts/miners-operating-profit-margin

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