Bitcoin: Silver = 1:1: Trace Mayer & Silver Vigilante Discuss

RTG: Hello and welcome to the Run to Gold Podcast. I’ve got with us special guest Silver Vigilante of Gold Silver Bitcoin. One Thing I admire about you is you’ve got an open mind. We’ve got some people in the gold and silver niches who don’t have open minds, whether it is Chris Duane who has been bad-mouthing Bitcoin for two years and continues to badmouth it or people who think they can just ignore it like James Turk at GoldMoney. What do you think is driving BTC?

SV: Well, I think first and foremost it’s the internet. Everyone believes in the Internet. Bitcoin is a microchasm of the Internet that can actually lead it in new directions. Google is going to try to shutdown websites that provide links for users to copyrighted material. They are going to do this the same way they did with WikiLeaks, through a “financial blockade.”  WikiLeaks got around that with BTC, and The Pirate Bays will do the same.

RTG: I wrote an article on this topic for Bitcoin Magazine called “Economic Censorship.” How is BTC a much more useful medium of exchange for protecting against economic censorship?

SV: First and foremost, privacy is very important. It’s very rare when one does not have to provide intimate details when they do anything. The beauty of BTC is that it can be between two parties, without a third party authority being involved – a digital handshake if you will – and nobody else needs to know about that transaction. We don’t need authority overseeing our daily lives, even in the “Age of Terrorism.”

RTG: There is a fundamental theorem in crytopgraphy; and that is, anything that can be done with a central authority, can be done without a central authority. Cryptographic ciphers do not need a centralized authority in the technical underpinnings and Bitcoin is a great example of that. You can send Bitcoin, in any amount,to anyone, at any time, to anywhere in the world and it cannot be confiscated or impeded. So, Mr. Silver Vigilante, how is the silver price doing?

SV: Although it had a decade of runs leading into 2012, it was very clear it could suffer an entire year of depressed prices. Here we are two or three months into 2012, and it has been a good year now of the price simply not doing much of anything at all except move further below $26. We might remember when Ben Bernanke replied to Ron Pauls’ question that gold was merely tradition, which is laughable coming from Ben Bernanke, a Keynesian as he is. But there is some truth to that. Gold and silver are traditional money. Bitcoin is different, it is stepping out of that and embracing the future, embracing technology, the Internet and so on. You can’t shut the Internet off. It is little more than millions of computers connected together. These computers will always be able to be linked together on some level. There can be attacks against the Internet, but that could lead to more strength in BTC.

RTG: You know – Ron Paul has filed suit under iCANN against those that hold ronpaul.com and ronpaul.org and have held those domains for ten years. RP is running to the UN to use violence against his most strident supporters to take from them their domain names against their will. If Ron Paul can censor their speech by taking their domain names, we don’t want to think of what he would use against his political opponents. Ron Paul claims to understand the principals of freedom of liberty, although this shows otherwise. It does, however, highlight the fundamental problem of the system of iCANN. With Namecoin it decentralizes the entire DNS system, making it censorship resistant so it can’t be confiscated. I think that BTC is the first to use these types of tools that is going to help us build systems that are censorship resistant.

SV: It is so Monty-Python esque. They tried to work with Ron Paul directly, but he still deferred his authority to the UN. It is like that movie “Brazil.” With Bitcoin, that wouldn’t be a problem. In a way, Bitcoin protects private property.

RTG: At How To Vanish we have a guide, 5 Steps To Anonymous Online Speech, showing how to register domain names with Bitcoin and buy and sell other goods and services. To actually decentralize the entire DNS system, that would sure be exciting. Then you couldn’t even seize domain names if you wanted to, because they would be tied to a cryptographic private key. That is why Bitcoin is taking off. Also, Bitcoin for the first time in history costs more than an ounce of silver.

SV:  Silver is off nearly 50% from its near record high two years ago, and since February 1 Bitcoin is now 50% north of its 20 day ago price.

RTG: Bitcoin is like a jet engine, the faster it goes the faster it goes because it is sucking in more air. As it brings in more capital, not only speculative but transactional, it gets more economic mass to it and so these network effects start to take hold. You’ve got PayPal, Google and others wanting to strangle file sharers. Well, Bitcoin is perfect for them. Mega Upload is now accepting Bitcoin. Reddit, one of the most influential websites in the world, crucial in making it politically impalpable for PIPA and SOPA to pass, now accepts Bitcoin. Because these fundamentals are just now being built, Bitcoin might be cheaper today than it was a month ago, becoming a better deal, because of these network effects.  I feel people aren’t going to trade Bitcoin for dollars or gold, but instead spend them on things they want and need. I read a few years ago about 10,000 BTC for a pizza, and now that is $300,000. The march for Bitcoin, and freedom, is moving forward.

SV: I believe people have a grave misunderstanding of how systems evolve…Darwin gave to us a slow evolution that was measured over time and consistent. What today many evolutionists prefer is a more anarchist understanding of evolution, an evolution in fits and spasms, unpredictable. In the socio-cultural realm, the same is true.

RTG: It ties right in with Nassim Taleb’s new book Anti-Fragility. He gives an analogy, if you’re shipping champagne glass you write ‘fragile’ on the box, because a little bit of chaos can shatter them. They are susceptible to chaos. What is the opposite of fragile? Well it is not durable. There really is no word for connoting “Please, rough this box up.” That’s exactly what Bitcoin is. In the Great Credit Contraction, I wrote that the system is in implosion, it is dead, zombified now and it is leading to chaos as it decomposes. The more chaos, the more stress on the system and institutions like Fannie or Freddie, Bank of America, Washington Mutual, Bear Sterns, MF Global and now the Federal Reserve with Germany wanting its gold back, are in trouble.  On the other side you have Bitcoin, and actually the more chaos the better it does. It’s a negative beta asset to the banking system. You couple that with its censorship resistant nature, tiny market cap and to where it could grow, I mean just to be useful in any finance it would need to be $1,000 a coin.

SV: It’s really Bitcoin against the world- these dominant financial system institutions are one at the top, and that is why they are moving towards getting file sharing sites in concert, SOPA and PIPA in concert, against WikiLeaks in concert. And then it is going to move beyond that. It is Bitcoin against the rest of these players, and all these players at top are like one.

RTG: That is where this gets real exciting, this battle royale if you will. The universe blesses nuclear weapons, since they exist, and they have almost unlimited violence. On the other end, cryptopgraphy can absorb an infinite amount of violence – you have with nuclear weapons and Bitcoin two unstoppable and immovable forces kind of colliding. The math problem can just be there and there is nothing the nuclear weapon can do but solve the math problem – you gotta solve the problem, you can’t force it even with weapons. Well, that’s about it for now, anything else to add?

SV: Nothing other than the younger generation will be even more excited than us about Bitcoin

RTG: Ain’t that the truth. Visit freebitcoin guide for your free Bitcoin guide today from How To Vanish.

2013-02-20 21:33:09

Source: http://silvervigilante.com/bitcoin-silver-11-trace-mayer-silver-vigilante-discuss/