The Bitcoin is a decentralized crypto-currency based on an open-source, peer-to-peer internet protocol that is 'mined' into the marketplace by computers that solve mathematical algorithms and that verify and archive every bitcoin transaction to a log or chain every ten minutes. The Bitcoin is limited in supply, divisable by 100 Million, and has no central authority.
The Bitcoin exchange-rate jumped over $70 US this week, due in part to the fear in Cyprus and the possibility of similar bank 'levies' across Europe, and also to a report from the US Treasury (FinCen) that offered some clarity on the Bitcoin from US Authorities. The articles below are recommended for clients and friends interested in learning more about the Bitcoin.
ECB Report: "Roots Of Bitcoin Can Be Found In The Austrian School Of Economics"
Bitcoin fully embodies the spirit of denationalized money as it seeks no authority for its continued existence and it recognizes no political borders for its circulation. Indeed according to the report, "proponents see Bitcoin as a good starting point to end the monopoly central banks have in the issuance of money."
MacLean's Magazine: Why Bitcoin is The Banking Industry's Newest, Biggest Threat
Bitcoin's big advantage is that it is essentially the cold, hard cash of the Internet. Instead of bills, Bitcoin's software keeps a public ledger of every transaction among users. If a buyer and seller are running the software on their computers, they can directly exchange Bitcoins, anonymously and with no taxes or bank fees. Bitcoin accounts are listed simply as a string of letters and numbers with no names attached, giving a level of anonymity impossible with debit and credit cards or even PayPal accounts.
Trace Mayer: Why Bitcoins Could Be Worth Thousands!
Cyprus has evaporated depositor's confidence around the world with the announcement of confiscating 10% of bank deposit balances to fund bailouts. FinCEN released guidance on decentralized virtual currencies that will give VCs confidence to make significant investments into the Bitcoin space. As a result, the price of bitcoins has melted up from $48 to $68 in a few days. But the meltup has just started and probably has a long ways to go.
SM Doubles Silver Position with Bitcoin Trade
On February 15th, to commemorate the Bitcoin reaching par value with silver, I personally launched a Bitcoin arbitrage -- the results I shared with the community at Bill Murphy's LeMetroPole Cafe' below:
Sent: March-20-13 10:13 AM RE: Bullion for Bitcoin Update
Hello Bill, well the Bitcoin has been on fire this week, reacting to the Cypress chaos as silver/gold would be in a fair market. The last BTC print (9:43 AM PST) was $64.40, up 20% plus for the week, and I just confirmed with my bitcoin4bullion dealer than I can buy a 100oz silver bar for 45.9 BTC. So the 112 BTC that we earned on February 15th with our 100oz bar (@ $28.25) will now buy two 100oz bars plus another 22-24 ounces. Initially I thought it might take until June to double my ounces -- it's been less than 5 weeks! Trading silver just got fun again. Cheers!
Happy to Help ..
The Bitcoin is not a fiat currency -- it enters the market under a strict mathematical protocol and not by decree. Yes the Bitcoin does look 'toppy' here from a technical perspective, but it's important to remember that the Bitcoin is also not a stock, EFT, or commodity. It is in fact a deflationary currency, trading freely and fairly in a global financial world polluted with infinite fiat money.
The Sovereign Exchange has recently aligned with Canada's largest Bitcoin market-maker and can help guide you through the steps required to activate an account and build yourself a Bitcoin position, either with Canadian Dollars, silver/gold bullion, or with your Sovereigns. Our exchange partner operates a robust and deep marketplace and recently announced over $6M in total Bitcoin transaction volume.
Federal Budget Details "Bail in" Regime for Canadian Banks?
From page 145 of Canada's most recent federal budget (be reminded that bank liabilities = customer deposits): "The Government proposes to implement a "bail in" regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital."
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Sovereign Exchange International Ltd.
Steven Merrill, President
www.sovereignize.net
phone:
778.835.7667
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Engage a Rich New Audience; Reconcile to your Private Account; Settle for Metal at Any Time. The Sovereign Exchange was founded by Steven Merrill and a small network of individuals from across British Columbia with a vision to embrace Austrian economic principles and provide a sound and stable payment facility than be trusted for commerce and used to store wealth.
