Archive for December, 2013

Does CNBC really know Bitcoin? Here are 11 myths.

December 28, 2013

OK, I’ll bite this list in the mainstream looks to be worth my time. Some of its good, some of its total crap. These are CNBC’s top 11 Bitcoin myths. Absent from the list, but in my mind also relevant: hackers can get into your wallet and steal your BTC- definitely a myth.

1)Bitcoin is Huge.
CNBC says its in fact quite small- market cap of 10 billion or so. They’re absolutely right. Huge growth, and hence the attention, but a long way to go to rival a gov currency. Although, like good little corporate shills, they’ve compared it to the US money supply of 800 billion. HA! That figure is total garbage and disregards one of the factors driving Bitcoin’s growth. There is way way more money in the US money supply, they are ignoring all the issued credit. A bank or the ‘Federal’ reserve issues credit and it gets passed around, circulated and used in ever way that dollar bills are used. There are unknown trillions out there in the actual US money supply. Why is it unknown? Because the gov stopped tracking it. That’s right, the US gov doesn’t even know how much money is in their total supply- F’n crazy right?! Canada’s is currently around 1.7 trillion, but we have 50 billion in paper bills printed by the government.

2)Bitcoin enables drugs and terrorism.
Of course it does! Its a currency. All currencies enable illegal activity. They claim its too volatile to be useful. This is frankly stupid and I’m tired of hearing it repeated. You can purchase and use BTC in a matter of seconds. Sure Bitcoin’s value is volatile, but it doesn’t have massive swings in a matter of seconds. Also, the silk road drug operation was back in business faster than you could shake a stick- go tell them its not useful, they’ll laugh at you from behind piles of drug money.

3)Bitcoin is a currency,
Yes it is. Like any other it gets its value from the people who will trade something for it. The comparison to credit cards is just strange. Credit cards issue new funds out of thin air to make the transaction, and cost a small fortune to its users. BTC has a fixed supply and no one can issue more like they do at VISA.

4)Bitcoin has never been more volatile than now.
Sure, that is a myth.

5)Chinese citizens can’t buy bitcoins
Does anyone actually think that, man I am so out of the mainstream maybe this myth is prevalent. If you can name something people can’t buy somewhere in the world I’d be shocked. Anybody buying this myth is in some sort of fog….Snowmen in Ecuador maybe?. . .

6) Bitcoin is not a store of value
The double negatives are hurting my head now. I think they’re saying it is a store of value right? I agree. Buy one now, sell it later, it stored your value.

7) Bitcoin is untraceable
 This one is tricky, especially for those trying to lie to everyone. Movements of BTC are highly traceable, what isn’t traceable is who owns each of the wallets. But, if you can manage to prove who owns a wallet by where they’ve sent and received BTC- you’ve got the owner traced entirely. This is what makes Bitcoin so great. Big public wallets will always be easy to keep track of the ownership, but small personal accounts will be easy to hide. . . Also, look up the deep web dummies (sorry they’re not dummies, they know all about it are doing the usual mainstream omission of important facts to paint a cozy corporate picture). Deep web is how Wikileaks and international spies stay anonymous on the internet. Yes its is very possible, the whole big brother thing is smoke and mirrors folks. Meant to instill fear of an omnipotent gov that does not exist.

8) Losing anonymity will render bitcoin useless
Please see #7, its is anonymous and will stay that way for small users.

9) It’s a Ponzi scheme
I’m not going to bother, because I don’t actually care enough, but I’d love to see how many times this ‘news’ outlet has called it a ponzi scheme or a tulip mania up until this point. Their first attacks failed, they are regrouping and changing the tune.

10) Bitcoin is “ready for prime time”
The technology is absolutely ready, and volatility is not an issue as stated in #2. Also, is accepting BTC in 2014- sounds fairly big time to me. . .

11) Something better will kill Bitcoin
Yep, I agree this is a myth. Hard to envision how anything will overtake Bitcoin in the p2p revolution.