Bitcoin: Gold 2.0

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bitcoin_ap2Breitbart: Bitcoin is the name of a group of peer-to-peer payment networks that serve as an open-source form of digital currency that was originally introduced in 2009 by a software developer with the alias of “Satoshi Nakamoto.

Here is a summary:

1. Better than gold, no United States regulatory authority has yet to determined that bitcoin is a currency, commodity or security.

2. All the transactions on the “Bitcoin Network” are transparently recorded on a public ledger known as “Blockchain.

3. A General Accounting Office report in March did not formally “classify bitcoins,” only describing them as the equivalent of “virtual property.

4. Bitcoins will remain rare like gold; by 2040 when the world population reaches 10 billion there will only be 1 Bitcoin for every 500 people on the earth.

5. Gold and Bitcoins are similar in lacking intrinsic value unless members of society have confidence they will maintain their value over time.

Opinion: I have to admit that Bitcoins are new ground. Since Central banks can only regulate currency issued by and settled at banks, Bitcoins are out of the governments’ reach, so far.

The success of Bitcoins may convince governments that a move away from paper currency to a limited amount of regulated electronic currency could be a viable replacement for the US dollar as the world reserve currency.

A cashless society would give a government absolute control of commerce, as found in Revelation 13:16-17:

“He also forced everyone, small and great, rich and poor, free and slave, to receive a mark on his right hand or on his forehead, so that no one could buy or sell unless he had the mark, which is the name of the beast or the number of his name.”

Bill Gross is the co-Chairman of Pimco. As of December 31, 2012 Pimco had $2 trillion in assets under management. It is the world’s largest bond investor. Here’s what he said about Bitcoins:

“We live not in a new gilded age, but a bitcoin age, where artificial money (from central banks) creates temporary prosperity.”

Mr. Gross forgot to add – and power.