Photo Credit: Rolling Alpha
***CAF Note: One of our subscribers had some questions about Bitcoin. Here is our first round of dialogue***
Solari Subscriber:
I am interested to see if Fitts concurs. She is more of an expert.
Solari Subscriber:
Bitcoin is a combination of a currency and a commodity – so can be manipulated on two fronts (instantly because they are digital to boot).
CAF:
It is a fiat currency. Not a commodity. A commodity is a real thing.
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Solari Subscriber:
What I meant was that it acts like a commodity “Futures” – which is actually a derivative. Wheat is a real thing – but a wheat futures has nothing to do with wheat as it is currently traded – since you don’t physically have to own wheat or need to buy physical wheat in order to play. There is no requirement to trade the physical wheat (buy and sell, purchase and deliver). The actual value of the bitcoin fluctuates like on a futures market based on internal supply and demand in that trading market – in addition to it acting as a currency for trade.
CAF:
Commodity future values are grounded in something real. A wheat future prices as a function of wheat. It can be traded in dollars or other currencies. A financial future is a derivative. It “derives” value from a financial instrument that derives value from something else. Presumably there is a trail back to an asset or contractual party.
Bitcoin can be traded in dollars. However, bit coin is priced on the basis of the future value of itself, which is impacted by its ability to transact on line with lower transaction fees and presumable anonymity. It’s value is driven wholly by supply and demand. Since it is not issued by a sovereign government that will honor its redemption, require it to be used as legal tender or accept it for taxes, it can only go ultimately through large scale consensus. That can only happen ultimately in my opinion with a combination of mind control and covert force.
Solari Subscriber:
They are totally transparent (unprivate) while creating the illusion of privacy – the goal of the NWO is to have visibility, traceability and record of every transaction on earth by everyone. This fits that mold and sets the stage for a universal digitized world of currencies that have the appearance of democratization (free market) but are even more tightly controlled and much more controllable than paper currencies.
CAF:
Agreed, although I would stipulate that the goal is to have low cost real time access. This is or will be 100% transparent to the leading private and public intelligence agencies. Essentially, on the Internet, he who controls the hardware, controls. That is why the “balkanization” of the Internet is underway, accelerated by recent revelations about global intelligence agencies access to Internet communications.
Solari Subscriber:
If a currency is tied to the dollar and/or euro as bitcoin is, then it is essentially a tool of the mechanism that controls both.
CAF:
Yes, for now. I would expect digital currencies to ultimately be priced and transact broadly. It is also important to recognize that it has no reserve requirement, no legal or regulatory obligations and no deposit insurance. The custodians/exchanges are not subject to standards of governance, capital or transparency. It has the potential to soak up a lot of excess money supply. If digital currencies grow, they implode the monetary sovereignty of all jurisdictions who do not enjoy the trap door.
Solari Subscriber:
In turn, this is not so much an alternative currency as it is a proxy – with a twist. It should be thought of more as a derivative.
CAF:
It is a financial scam that can work by consensus if supported by force and investment that will be invisible to the vast majority of the users.
Solari Subscriber:
An “alternative” would not be allowed to live if it were a threat to the bigger agenda.
CAF:
Agreed.
Solari Subscriber:
The powers to be have all of the resources to shut it down legitimately or covertly if they felt the need or desire.
CAF:
Agreed.
Solari Subscriber:
SO if this lives or thrives, it is with the blessing of the powers that be. That usually means it is of their making or of their bidding – either by intention or otherwise. There seems to be a lot of intention behind this.
CAF:
Agreed.
