I heard about Bitcoins when they first appeared and as it was touted as an alternative money, I looked into it, and lost interest immediately. It isn't money, at best it is a tally system, but so obtuse as to fail in that regard.
Dr. Gary North discusses Bitcoins and money, and makes a useful argument against them, but part of the Bitcoins scam is one can project any rationale onto the Bitcoin template and find what one is looking for. So this particular argument answers only one particular fantasy of all the fantasies extent.
North cites his sources on the definition of money. But I was surprised how he ends his essay with this:
Here is a dollar like the one in your wallet, and another unlike any in your wallet.
The top one is a Federal Reserve Note, evidence of fraud and violence. Fraud because there is nothing backing the note except "faith" (I suppose there is a note of blasphemy too) and violence because it is legal tender (top dollar, upper left box), which means anyone who wants to extinguish any debt may do so with this document. If you owe me $1000, I must accept these notes in payment, or not at all. Demands I be paid in any other way (say money) can result in a chain of events that can lead ultimately to my death, to the degree I press my demands.
Adding to the scam is the pretense USA currency is issued by private companies, in this case banks, as though we are like Hong Kong. Ha! And top dollar lower right, you see this was issued in 2006.
Now the bottom dollar, lower right, is dated 1957. Back them people understood money was gold and silver. Since gold and silver can be tedious to carry around, the government might issue warehouse receipts on what was held in Fort Knox, that is gold and silver, or money. So read the top box of the bottom dollar: "Silver Certificate, this certifies that there is on deposit in the treasury of the USA, etc..." No faith here, this is a receipt that matched actual silver in Fort Knox. And you could use this to pay debts, or take silver out of Fort Knox. Private banks used to issue these as well. You can see many examples of each here.
See some are denominated as $100,000 in gold. Cool. If you find one, can you get $100,000 worth of gold for it out of Fort Knox?
Why get rid of money, and warehouse receipts? Because its use prevents States from robbing their subjects. For example, back when dimes were silver and gas was twenty cents a gallon, circa 1962, two dimes got you a gallon of gas. Today in fiat currency, gas is about what? $3.60? Take two silver dimes into a coin dealer and he'll trade about $3.60 for the two dimes. Money holds its value much better in spite of change, which is one reason we call it money.
The point of all of this is definitions matter. It is the sloppy definitions that allow bad ideas to slip in. Call money money, warehouse receipts warehouse receipts, and fiat dollars what they are. Harder to be scammed when definitions are clear.
Feel free to forward this by email to three of your friends.
Dr. Gary North discusses Bitcoins and money, and makes a useful argument against them, but part of the Bitcoins scam is one can project any rationale onto the Bitcoin template and find what one is looking for. So this particular argument answers only one particular fantasy of all the fantasies extent.
North cites his sources on the definition of money. But I was surprised how he ends his essay with this:
In other words, Bitcoins are not money; dollars are money. There has been no challenge from Bitcoins to the reign of the dollar.No, our currency, the dollar, is not money. He knows that. Let me show you what Dr. North would not disagree.
Here is a dollar like the one in your wallet, and another unlike any in your wallet.
The top one is a Federal Reserve Note, evidence of fraud and violence. Fraud because there is nothing backing the note except "faith" (I suppose there is a note of blasphemy too) and violence because it is legal tender (top dollar, upper left box), which means anyone who wants to extinguish any debt may do so with this document. If you owe me $1000, I must accept these notes in payment, or not at all. Demands I be paid in any other way (say money) can result in a chain of events that can lead ultimately to my death, to the degree I press my demands.
Adding to the scam is the pretense USA currency is issued by private companies, in this case banks, as though we are like Hong Kong. Ha! And top dollar lower right, you see this was issued in 2006.
Now the bottom dollar, lower right, is dated 1957. Back them people understood money was gold and silver. Since gold and silver can be tedious to carry around, the government might issue warehouse receipts on what was held in Fort Knox, that is gold and silver, or money. So read the top box of the bottom dollar: "Silver Certificate, this certifies that there is on deposit in the treasury of the USA, etc..." No faith here, this is a receipt that matched actual silver in Fort Knox. And you could use this to pay debts, or take silver out of Fort Knox. Private banks used to issue these as well. You can see many examples of each here.
See some are denominated as $100,000 in gold. Cool. If you find one, can you get $100,000 worth of gold for it out of Fort Knox?
Can I redeem my gold or silver certificate for gold or silver at a Federal Reserve Bank? No. However, gold and silver certificates are sometimes more valuable to collectors than their face value. Check with a local coin or currency dealer in your area who can assess their worth as a collectible.No. Simple as that. The promise has since been repudiated. Governments can do that. And yes, true, a $1 silver certificate you might get $1.00 from a dealer for it. And for higher denominations, say $10,000, a dealer or auction might get you more than face value for it, depending on its rarity, like stamps. So if you find one, don't throw it away. But don't count on it.
Why get rid of money, and warehouse receipts? Because its use prevents States from robbing their subjects. For example, back when dimes were silver and gas was twenty cents a gallon, circa 1962, two dimes got you a gallon of gas. Today in fiat currency, gas is about what? $3.60? Take two silver dimes into a coin dealer and he'll trade about $3.60 for the two dimes. Money holds its value much better in spite of change, which is one reason we call it money.
The point of all of this is definitions matter. It is the sloppy definitions that allow bad ideas to slip in. Call money money, warehouse receipts warehouse receipts, and fiat dollars what they are. Harder to be scammed when definitions are clear.
Feel free to forward this by email to three of your friends.
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