What Is a ‘Bitcoin’? by Hugo Salinas Price

From a guest post by Hugo Salinas Price at theburningplatform.com:

A “Bitcoin” is a molecular magnetic field on a computer memory. The “Bitcoin System” allows a person to purchase one or more Bitcoins for fiat money and to move the purchased Bitcoins around the world, from one computer to another, free of interference by any governmental agency and independent of all banking systems.

Those who promote the Bitcoin System sing the Bitcoin’s praises as being a money that is free of any interference or influence by any government agency or monetary authority, and the owner’s Bitcoin property is known to no one but the owner. Secrecy and privacy are the Bitcoin’s great merits.

To enhance the desirability of the Bitcoin, its promoters have engaged in fraudulent advertising. They present the totally imaginary Bitcoin on the Internet as a pile of shiny gold-colored coins labeled “Bitcoin”.

The deception is calculated to have prospective buyers of Bitcoins and actual “owners” of Bitcoin balances think of these brassy, gold-colored coins when dealing in Bitcoins, thus confusing them with images of non-existent coins. The promoters want the public to associate the imaginary digital Bitcons with something tangible. This is most certainly fraudulent advertising.

Additionally, Bitcoins are promoted as free of inflationary risk, for the fanciful reason that the Bitcoins are “mined” – evoking the strenous labors of gold-miners in their dark caverns – by specialists who must rack their brains to “mine” Bitcoins and produce new, additional digital Bitcoins to contribute to the Bitcoin System as their property. The idea is to enhance the value of Bitcoins because they are very hard to “mine”. The fact is, that scarcity does not necessarily make a thing valuable. Nor does the work involved in “mining” them give them any value.

To continue reading: What Is a ‘Bitcoin’?

See also “Real Money,” SLL, 9/9/15

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