Right at this very second, the largest transfer of wealth in the history of humanity is underway. It has been going on since 2009, bitcoin worth nothing that it’s really picked up speed in the last 6 months. A couple of days ago, I wrote a detailed post on RVF explaining Bitcoin in layman’s terms.
Bitcoin is the world’s largest cryptocurrency, essentially money for the Internet. It is an open source Internet protocol, like HTTP. Bitcoin is pioneering the idea of a deflationary currency, something which has never been possible before in humanity’s history. Gold and silver come close, but not all of it has been dug out of the ground yet. The only two possibilities for Bitcoin are that its value goes to zero, or increases. Unlike gold and silver, Bitcoin can be essentially perfectly subdivided, and transmitted anywhere on the planet for almost nothing between any two parties with an Internet connection.
Bitcoin is decentralized like the Tor network, so it cannot be regulated or controlled by any government or authority body. Every currency and medium of exchange on the planet is down against the Bitcoin over the last year, including gold and oil. Innovation Means Winners And Losers There is a hard limit of just under 21 million Bitcoins. Even if the world’s money supply was entirely Bitcoin, one Satoshi would be worth just a couple of cents in today’s USD, allowing for small transactions.
Bitcoin, the world just doesn’t know it yet. Like this, but on a world scale. For the most part, this includes white, technically-minded, middle-aged American men but increasingly comprises Chinese technophiles and a cross section of society in economically unstable countries like Cyprus and Argentina. The US government is starting to clue in and realises it needs to know what’s going on, but all they need to understand is that they can benefit from supporting it, or be trampled as they attempt to regulate something beyond their control.