A Financial Revolution That Is Bringing Change

bitcoin

Uncle Sam is broke. US’s debt skyrocketed to over $17 trillion in 2013; meanwhile, the filthy-rich 1% control over 35% of our national wealth. Amidst a firestorm of financial intervention and monetary manipulation by our government, Bitcoin was born, and it’s here to save the day; by bringing us change.

It all began with an ambition to create a solution to our money problems. With the value of the dollar becoming increasingly unstable, the concept of an alternative currency was developed. Launched in 2009, Bitcoin is both extremely complex and ingeniously simple:

First, the easy part: The idea is a universal crypto-currency that is not subject to the regulations of any governing entity. Bitcoins are considered inflation proof because there is no possibility of a market influx, as the number of total bitcoins in circulation is predetermined and cannot be changed later. For now, there are over 12 million bitcoins in circulation, with a cap of 21 million.

Okay, the more complicated parts: Bitcoin was developed by a collaboration of the world’s smartest software developers on the foundation of creating a peer-to-peer network of financial transactions that is free from any government control. “Blocks” are generated, composed of extremely complex mathematical equations. “Miners” use mega-computers (and lots of electricity) to solve the equations, which in turn “release” the bitcoins into circulation. People can then exchange dollars, or any other currency, for bitcoins, at whatever the given exchange rate is at that moment.

Bitcoins, however, have been subject to new-market adjustments and extreme volatility in value. Its sustainability, like any other currency that lacks intrinsic value, fundamentally relies on whether or not the people choose to accept it. Despite dramatic swings, many are sticking around. In 2011, a bitcoin could be purchased for $0.03; as of January 9, 2014, the exchange rate from dollar to bitcoin was $812.48 to 1 BTC.

Dollar-defenders dismiss Bitcoin as a way for drug-dealers and other shysters to conduct shady business without detection. Pointing at its prevalent use in online black markets such as the Silk Road, and the related 2013 FBI seizure of over 144,000 bitcoins (valued at $28.5 million at that time), critics circumvent the simple truth that the dollar, aka cash, is also a preferred means for such types of transactions.

Still, the people persist. In 2013, a $6.5 million transfer through Bitcoin accrued a transfer fee of .06 cents, or .0000009%. Compare that to PayPal, which would have charged $188,500 (2.9%), or a bank transfer, which would have cost $227,500 (3.5%).

In October of 2013, the largest bitcoin “wallet” consisted of 144,341.51 BTC, valued at $141,887,713.76. Guess who owns that? That’s right, the FBI, who took the lead after their Silk Road seizure. Only one other account cracks the $100 million mark, but it’s anonymous and untraceable.

Bitcoin is forcing change by challenging a polluted system. As more people begin to take notice, its value increases. Suddenly, a system that has long slighted its citizens has been put on notice. For all those frustrated fiscal-conservatives and outraged ‘occupy wall street’ protesters, your revolution has arrived; take notice.