The End of Money

Jay OwenReforming Global Finance, Advisors' Forum

 

News from our  Advisory Board member ,Stuart Valentine  – Hazel  Henderson, Editor-in-chief

Inside Investing Daily

Print Edition

Archives

About Us

Whitelist us

Confirm Your Subscription

Wednesday, Apr. 10, 2013

The End of Money
by Justice Litle, Editor, Strategic Wealth Report

The world’s monetary system stands on a precipice…

It may not feel like it. But we are fast approaching what I call “the end of money.”

The process that will lead to the end of money has already begun. That’s why central bankers and governments are terrified of the booming “digital currency” bitcoin… and the implications it has for outdated fiat regimes.

Maybe that’s why a government-sponsored cyber-terror agency tried to shut the bitcoin down.

Instawallet is — or, rather, was — a service that made it easy to store and spend bitcoins. Instawallet was just hacked anonymously — leading it to shut down until it can develop a new hacker-safe architecture.

The Next “Flash Crash” Could Happen Tomorrow…

Computers have taken over the stock market. One of every two trades is done automatically by a computer.

These “high-frequency traders” — as they’re called — caused a 9% loss in five minutes during the “Flash Crash” of May 6, 2010. And they’ve only gotten more powerful since.

This video will show you how to protect yourself from catastrophe right away.

Of course, we can’t say for sure that the bitcoin cyberattacks are the work of a worried government (or governments). But this is a logical assumption… and, at minimum, a strong possibility.

Bitcoin is such a threat to the standing fiat money regimes that it would be crazy for them NOT to try to torpedo the bitcoin under cover of darkness.

Bitcoin is a “decentralized digital currency.” It was launched in 2009 by a developer known only by the pseudonym Satoshi Nakamoto.

You can buy bitcoins through a range of online exchanges. (This is the largest bitcoin exchange.) Once you’ve bought them, you store them in an online “wallet,” a small, unobtrusive program that runs on your computer or phone) and exchange them anonymously… locally or internationally.

This all take places without any bank, government or other middleman taking a cut.

The supply of bitcoins is finite. There is no bitcoin central bank. And there is no backing by “fiat” from any government. There is a hard limit of 21 million bitcoins. The rate of new bitcoin issuance is automated. Based on the rate of issuance, the 21 million hard limit will be reached by 2140.

Currently, the total outstanding supply of bitcoins is worth over $1 billion.

There are two important reasons why bitcoins have value:

1.     Their supply is strictly limited (much like the supply of gold)

2.     They’re nearly impossible to counterfeit.

Gold has been desirable as a currency for millennia because it is portable, divisible and in limited supply (unlike the paper stuff, which can be cranked out at will). The bitcoin has exactly the same characteristics.

And all bitcoins are verified by a “transaction chain.” This means, to counterfeit bitcoins, the counterfeiter would have to spoof a miles-long transaction record and fool thousands of independent servers instantaneously (a feat orders of magnitude tougher than counterfeiting paper banknotes).

Bitcoin is ushering in a sea change. It is teaching the users of fiat-backed currency to think and imagine… and what they are thinking about is a monetary future without central bankers.

The key point here is that the bitcoin is a viable alternative to a system in which the government issues currency… and declares “by fiat” that it is worth something while it prints unlimited amounts of the same currency.

The mainstream media’s scoffs and guffaws… and the shadowy hacker attacks… do not diminish that reality.

Are bitcoins a good investment right now, as they enjoy the spotlight of a tulip-like mania? Probably not. Wait for price volatility to create better buying opportunities.

While you’re waiting, remember that bitcoins are the harbingers of brand-new realities… and the “end of money” as we know it.

There will come a time — perhaps soon — when you can denominate the majority of your liquid assets in a stable, private currency of your own choosing…

One issued by no government. And manipulated by no central bank.

Carpe Divitiae,

Justice

P.S. I will keep a close eye on the bitcoin wave and the other majortrends shaping the world — and share how to profit from them — in mybrand-new paid investment advisory, Strategic Wealth Report. This is notopen to the public yet. But you can access an urgent investment report here. In it, you’ll find two urgent, actionable ways to profit as the fiat moneysystem collapses. Go here now to download your complimentary copy.


Become a fan of Inside Investing Daily on Facebook  Follow @Inside_Daily on Twitter

 

This e-mail was sent to [email protected] because you subscribed to this service. It’s not our intention to send e-mail to anyone who doesn’t want it.

To cancel Inside Investing DailyUnsubscribe here.

To cancel by mail or for any other subscription issues, write us at:
Order Processing Center Attn: Customer Service P.O. Box 925 Frederick, MD 21705 USA

Do not reply to this email as it goes to an unmanned box. Please go to http://www.insidersstrategygroup.com/csc-nac-form.html for all questions and comments.

Having trouble getting your e-mails? Add us to your address book. Get Instructions here…

Copyright 2013 Inside Investing Daily, 819 N. Charles St., Baltimore, MD 21201. All rights reserved. No part of this report may be reproduced or placed on any electronic medium without written permission from the publisher. Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. Inside Investing Daily or its editors and publications do not advocate the purchase or sale of any security or investment. Investments recommended in this publication should be made only after
consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Inside Investing Daily expressly forbids its writers from having a financial interest in any security that they recommend to their readers. Furthermore, all other employees and agents of Inside Investing Daily and its affiliate companies must wait 24 hours before following an initial recommendation published on the Internet, or 72 hours after a printed publication is mailed.