Ron Paul on Bitcoin: "The dollar has lost 97 percent of its value..."

[TopherB]

Hasn't the british pound been around though, for hundreds of years?

Something to ponder: why is it named the 'pound'?

Good question.

A pound of sterling silver.  So a pound of silver today would cost about $340 ($21.25/oz* 16 oz).  The pound is not worth $340 US dollars. :-)

still, it seems the pound is still around, so people that say "every fiat dies" aren't being totally accurate.

The pound has only been fiat since 1935. Before that it was backed by silver. So give it a little time, when the USD falls it will take most other fiats with it. And there are no more backed currencies in existence. So assuming it isn't so catastrophically fast as to cause a grid-down scenario bitcoin becomes one of the better hedges.

[Ron~Popeil]

Hasn't the british pound been around though, for hundreds of years?

Something to ponder: why is it named the 'pound'?

Good question.

A pound of sterling silver.  So a pound of silver today would cost about $340 ($21.25/oz* 16 oz).  The pound is not worth $340 US dollars. :-)

still, it seems the pound is still around, so people that say "every fiat dies" aren't being totally accurate.

The pound has only been fiat since 1935. Before that it was backed by silver. So give it a little time, when the USD falls it will take most other fiats with it. And there are no more backed currencies in existence. So assuming it isn't so catastrophically fast as to cause a grid-down scenario bitcoin becomes one of the better hedges.

I really think we are in a race against time at this point. Can we get the economic infrastructure built in time for bit coin to be a natural alternative? This could reduce a lot of the pain associated with the meltdown.

[littlewizard]

While I do believe there will be a major US dollar devaluation in the (probably) near future. I don't think it's going to "crash" and become almost worthless like a loaf of bread costing $100. While I know that the US dollar is becoming less important to the world economy, it's still the biggest player and will be for quite a while still.

Yes, almost all the currency released by countries are have devaluation issue.

[qwerty555]

While I do believe there will be a major US dollar devaluation in the (probably) near future. I don't think it's going to "crash" and become almost worthless like a loaf of bread costing $100. While I know that the US dollar is becoming less important to the world economy, it's still the biggest player and will be for quite a while still.

Yes, almost all the currency released by countries are have devaluation issue.

It appears devaluation is a race and this is actually Govt policy in most cases , forced upon them by economic realities..but they do not advertise that fact , naturally


The Federal Reserve's Explicit Goal: Devalue The Dollar 33%

http://www.forbes.com/sites/charleskadlec/2012/02/06/the-federal-reserves-explicit-goal-devalue-the-dollar-33/

https://www.google.com.ph/search?q=devaluation+race&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb&gfe_rd=cr&ei=Sxi6U6SfK-iJ8QfHqYCwDQ#channel=sb&q=devaluation+race+zero+hedge&rls=org.mozilla:en-US:official

https://www.google.com.ph/search?q=devaluation+race&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb&gfe_rd=cr&ei=Sxi6U6SfK-iJ8QfHqYCwDQ#q=dollar+devaluation+race+&rls=org.mozilla:en-US:official

[STAyre]

Well, we do have an issue with cons in this community.

Thats not what he is referring to. He is referring to people dumping their dollars for Bitcoin.

[EricTyle]

Can people please stop trying to promote alt-coins too? I hope that you realize that if you would like Bitcoin to be successful, you cannot have all these altcoins just chilling around everywhere. It's akin to the US Dollar and then a bunch of monopoly play monies!

They're fun to play with, sure... but most of them don't fix anything. They do not have a real cause. They're good for learning, and that's it. Look at this guy who lost 37,000$ on Dogecoin because he thought that it was going to go through the ruuff? If he bought bitcoin in January, because he didn't have other stupid options, then his value would have deflated from 900$/BTC to 625$/BTC, as of the 24 hour low today.

Imagine if more people like this guy saw BTC, and purchased BTC instead of some other altcoin that doesn't have a purpose? At least AuroraCoin was gov't backed... or something.

Bitcoin was made to act as a decentralized, deflationary currency, backed by the value that our peers give to it. We need people to understand that backing an altcoin that doesn't solve a problem will not fix anything -- the only difference, in most cases, is: block reward, confirmation time, the maximum amount of coins able to be found, and the block halving time. Litecoin falls into this category, but isn't actually a joke coin and is often times referred to as the silver to Bitcoin's gold. Ironic that Bitcoin is yellow, and Litecoin is silver (I do not own a single LTC, and I never have. Don't even keep up with the price)?

[mamarried]

Well, we do have an issue with cons in this community.

Tenarlty picked up on the fact that Ron Paul said "Bitcon" by mistake at the end of the video. Notice "con" instead of "coin." My comment is going along with that as a joke.

[RepublicSpace]

Tenarlty picked up on the fact that Ron Paul said "Bitcon" by mistake at the end of the video. Notice "con" instead of "coin." My comment is going along with that as a joke.

I think it's just his accent 

[tigeRshoes]

I think it's just his accent 

me too, he's done it before.
the "bitcoan" 

[QuestionAuthority]

Tenarlty picked up on the fact that Ron Paul said "Bitcon" by mistake at the end of the video. Notice "con" instead of "coin." My comment is going along with that as a joke.

I think it's just his accent 

No, it's because he's a 112 years old. He looks like a cadaver. What happened to his lips - they're missing. The guy is rolling in money, can someone please hire a beautician to fix the old mans eyebrows.

[Zasare79]

"The dollar has lost 97 percent of its value..."

This is only an issue if you're treating the dollar as a long-term investment. After all, we're talking about a timespan of 101 years here.
Nobody has their retirement money or investment money in savings accounts. If they have them in government backed securities at all they'll be in treasury bills, whose returns have greatly exceeded inflation. $10,000 invested in a 10-year treasury fund 10 years ago would be worth $17,000 today.

[qwerty555]

"The dollar has lost 97 percent of its value..."

This is only an issue if you're treating the dollar as a long-term investment. After all, we're talking about a timespan of 101 years here.
Nobody has their retirement money or investment money in savings accounts. If they have them in government backed securities at all they'll be in treasury bills, whose returns have greatly exceeded inflation. $10,000 invested in a 10-year treasury fund 10 years ago would be worth $17,000 today.

Agreed..but....

1 If they know or worse target a 33% devaluation in 20 yrs or 2% per year and fix interest rates at negative  or zero and by printing money and other economic policies that they cause inflation and particularly food inflation

The Real Inflation Fear - US Food Prices Are Up 19% In 2014

https://www.google.com.ph/search?q=food+inflation+2014&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb&gfe_rd=cr&ei=iF66U529JMuE8Qf08IGwAg

and these people are public servants elected by the population and with an obligation to protect and warn from /of issues that adversely effect the electorate. If they do not publicly and prominently warn the public ( like on cigarette packets  health warnings) that their policy is to devalue and the effects that it will have on savers (get out of fiat) pensions, cost of food and utilities etc will lead to loss of purchasing power/standard of living, then they are not fulfilling their obligation and arguably should be party to a class action suit by the electorate for recovery of the billions in losses incurred by those affected parties LOL!!!!!  accompanied with windfall taxes on the financial entities "in the know"  or with preferential treatment that these policies allow to make billions out of almost no assets or assets "created" by the Fed for their use.

inflation/ devaluation of currency is a normal part of the financial cycle and world..the difference is they are targeting it by policy without  the necessary "health/ wealth" warnings to the layman who make up the majority of their electorate and for the benefit of a tiny few financial institutions at the expense of their voters  !!!

What percentage of voters know how or have the means to invest in treasuriy bills to protect themselves?  might I suggest less than 5% or possibly even 00.5%?

[qwerty555]

Yesterdays post and today's zero hedge re-post ( to view opinion below the article) on the future of the $

The Dollar As We Know It Will Be Gone Within 6 Years

http://www.peakprosperity.com/podcast/86044/mike-maloney-dollar-we-know-will-gone-within-6-years

http://www.zerohedge.com/news/2014-07-06/mike-maloney-dollar-we-know-it-will-be-gone-within-6-years

Timing may be incorrect but eventuality has a high probability?

[qwerty555]

and while we are here and I have a bee in my bonnet

If you are NOT a bitcoin investor below the $200, $400 or $600 level

Why You Feel Poorer

You feel poorer because you are poorer.

http://www.zerohedge.com/news/2014-07-07/why-you-feel-poorer

In the last fourteen years, has your income increased over 50%? If you think it has, has it done so after taxes? Even if it has, you likely have not kept up in terms of inflation.

Government has killed the golden goose and in an attempt to hide the obvious is debauching the dollars. Government tries to hide their own failure with phony statistics and a welfare state designed to placate the masses. Bread and circuses are deceptions not progress.



Cryptocurrency is the eventual likely savior of these "men in suits" irresponsible, negligent (corrupt? probably) and greedy actions.

AAAaaah.. Got that off my chest!

[ljudotina]

As much as i'd like for fiat to die horrible death, i know that in process ALOT of people will loose all they have and probably there will be some blood spilled too so i cant really say i'm hoping it comes as soon as possible. Changes like that are volatile and very unpredictable. Yes, change is much needed but i dont really know how is it possible to make it slowly and paynless. Once people start jumping from fiat to whatever alternative (hopefully bitcoin), process will start slowly (or it already started) and will gain speed as it goes. Once it reaches certain treshold, it will go so fast that most of the common people wont have time to react and alot of value that those people have in fiat will dissapear.

[qwerty555]

As much as i'd like for fiat to die horrible death, i know that in process ALOT of people will loose all they have and probably there will be some blood spilled too so i cant really say i'm hoping it comes as soon as possible. Changes like that are volatile and very unpredictable. Yes, change is much needed but i dont really know how is it possible to make it slowly and paynless. Once people start jumping from fiat to whatever alternative (hopefully bitcoin), process will start slowly (or it already started) and will gain speed as it goes. Once it reaches certain treshold, it will go so fast that most of the common people wont have time to react and alot of value that those people have in fiat will dissapear.

I suspect that IF the powers that be ( financial and political) want to have a mild transition from fiat to crypto they can do it IF they want to

Why/how?

1 most people in the World are not affected by value of  fiat savings

a) Half just have NO MONEY at all !

Almost half the world — over three billion people — live on less than $2.50 a day.

http://www.globalissues.org/article/26/poverty-facts-and-stats

A slightly older report

http://worldcentric.org/conscious-living/social-and-economic-injustice

b) of the other half in Western "rich" LOL societies like the USA, 76% live from pay check to pay check


Roughly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings, according to a survey released by Bankrate.com Monday.

http://money.cnn.com/2013/06/24/pf/emergency-savings/

c) Those rich who are not "dumb" will monitor the situation and hedge their bets once they accept that this is good for everyone, including them in the long run and that it can no longer be stopped. The honest and/or wise ones will not lose much, in fact they could well gain wealth in the process.

So , arguably, only a minority of the worlds total population would be adversely affected if a well organized and gradual transition takes place.

I can see a scenario where governments eventually embrace crypto currency..introducing their own.

It has some fantastic advantages that we have heard about before like frictionless/ cost efficient etc. and for this reason they would want it but only WHEN it is no longer possible/ acceptable to inflate by printing and it may well take a global fiat crash to get to that point in time. That crash will not be because of the emergence of cryprto's but due to their reckless policies over decades and the pain/ blood on the streets will occur for that reason. Crypto currency would make a good solution once that scenario happens.

A transition to a new National crypto could be be a boon for Governments....All money in BANKS and financial instruments ( legal money) will be exchanged automatically at the government rate. All money in private hands would be exchanged at authorized institutions.. all illegal money such as from crime/ undeclared for tax purposes will have problems getting exchanged ( though not impossible) but it will have a cleansing effect to some degree.
I have been through this type of scenario when the UK went decimal in 1971 so I know it works and can be managed without too many problems.

http://en.wikipedia.org/wiki/Decimal_Day

Quick decision

But remarkably it took the government only seconds to decide to get rid of the currency that had served Britain for thousands of years.


http://www.bbc.co.uk/news/business-12346083

summary

I believe a global transfer to crypto currency is a matter of when..not if

The percentage of the worlds population adversely affected in a transition would be (well) under 20%

Bitcoin will co exist with new National/ or economic block Cryptos eg north American/ ASEAN

It would be nicer to have them plan and manage the transition well ( and I am 100% sure that there are people studying/ working on this)  because it is just BETTER than fiat and not wait until there is too much "blood on the streets"

[leopard2]

https://www.youtube.com/watch?v=wrcszolEW0s

Short video. What are people's thoughts on this? Do you guys anticipate a "panic" occurring at some point?

Any sane person should prefer a currency backed by science over a currency backed by nothing

it is backed by the law AKA threat of violence

real honest money is always free money, in your country there used to be such a thing as free coinage and actually the US constitution supports that ... but the constitution is not being honored by your government.

[leopard2]

Tenarlty picked up on the fact that Ron Paul said "Bitcon" by mistake at the end of the video. Notice "con" instead of "coin." My comment is going along with that as a joke.

I think it's just his accent 

No, it's because he's a 112 years old. He looks like a cadaver. What happened to his lips - they're missing. The guy is rolling in money, can someone please hire a beautician to fix the old mans eyebrows.

Internal beauty, my friend ;-)

Hire a psychiatrist to fix the other politicians brains 

[ronskii]

"The dollar has lost 97 percent of its value..." is a sensationalist headline. It only matters if dollar is hoarded long-term. Yes, currencies also work as a store of value, but in our system it's not supposed to be a longterm store of value and everybody knows that.

There are more important things to look at.

[jonald_fyookball]

"The dollar has lost 97 percent of its value..." is a sensationalist headline. It only matters if dollar is hoarded long-term. Yes, currencies also work as a store of value, but in our system it's not supposed to be a longterm store of value and everybody knows that.

There are more important things to look at.

no, not everybody knows that.

if they did, more people would be using Bitcoin already.