Wednesday, December 11, 2013
An Interview With America's Top Bitcoins Expert: Bitram "Bitty" Coins
This interview with a Bitcoins expert is just too good to ignore...
Today, I interview Bitram "Bitty" Coins, the nation's leading expert in the Bitcoins market.
GN: Mr. Coins, I am happy you consented to an interview.
BC: Call me Bitty.
GN: OK, Bitty. I want to find out what this Bitcoins deal is all about.
BC: It's about liberty. It's about a new international market. It's about a New World Currency Order.
GN: It's also about buying 10,000 Bitcoins for $50 in 2009, which are worth $13,000,000 today.
BC: I call this value-added investing.
GN: I call it a digital tulip mania.
BC: I see that you are a skeptic.
GN: You have very clear eyesight.
BC: Maybe I can persuade you otherwise.
GN: Give it your best shot.
BC: Let me tell you about the #1 benefit. You get complete privacy.
BC: That's right.
GN: How does this work?
BC: You go to an exchange and buy Bitcoins.
GN: You mean like Silk Road?
BC: Not Silk Road. The U. S. government shut it down.
GN: Then maybe Sheep Marketplace, Silk Road's replacement?
BC. It went out of business when someone stole $100,000,000 in Bitcoins -- maybe the biggest theft in history.
GN: How did he do this?
BC: Nobody knows.
GN: Will the police catch him?
BC: The police can't do anything about it.
GN: Why not?
BC: Because, with Bitcoins, you have complete privacy.
GN: So does the thief.
BC: That's the price of complete privacy.
GN: Then what recourse do the victims have?
BC: Well, one of them said this. "I won't find this guy. Somebody else will. I assume he'll be jailed, blackmailed, tortured or killed." I find this inspirational. It's 100% privacy at work.
GN: Are these heists a pattern?
BC. Not at all. They are random.
GN: But there are so many of them. Here is a list. (https://bitcointalk.org/index.php?topic=83794.0)
BC: It's just a cost of doing business anonymously.
GN: Because there are no contracts.
GN: Because there are no courts.
GN: Because no one knows who he is dealing with.
GN: So, if you get robbed, you lose everything.
BC: Yes. But the risk is low.
GN: How low?
BC: No one knows.
GN: Because the Bitcoins market is 100% secret.
GC: Let's get back to your account of how I get 100% secrecy. Let's say that I buy some Bitcoins on an exchange. A reliable exchange.
BC: A good idea.
GN: How do I get money to the seller of Bitcoins?
BC: By a bank draft.
GN: Is there a public record of this?
BC: Not on a Bitcoins exchange.
GN: I mean at my bank.
BC: Oh, sure. It shows that you have spent the money.
GN: So, I don't transfer the money secretly.
GN: Then how do I get 100% secrecy?
BC: Because no one can follow your money after you transfer it.
GN: Even me, if it gets stolen.
GN: What if I want to sell some of my Bitcoins?
BC: No problem. You sell them, and you get dollars.
GN: Untraceable paper dollars?
BC: No. Digital money.
GN: But digits can be stored only in a bank.
GN: Then the digits -- dollars -- wind up in my bank account.
GN: So, this is not secret.
BC: Of course not. It's central bank digital money.
GN: So, to maintain 100% secrecy, I must never sell my Bitcoins for dollars.
GN: What can I buy with Bitcoins?
BC: Illegal drugs.
GN: What else?
BC: Computer programming.
GN: Anything else?
BC: Not much. But there are more things all the time.
GN: So, let me be clear about this. I give up dollars, with which I can buy anything, so that I can buy Bitcoins, which can't buy much of anything.
BC: You are buying secrecy.
GN: But I can go to my ATM and get currency. I can spend currency anywhere. I can spend it on anything offered for sale for dollars. This leaves no trace.
BC: But there is a record of this withdrawal.
GN: There is a record of my withdrawal to buy Bitcoins.
GN: Then why should I buy Bitcoins?
BC: Because they keep rising in price.
GN: Why do they go up in price?
BC: Because of success stories.
GN: Give me one.
BC: In 2010, you could have bought 10,000 of them for $25 in pizza.
GN: But in 2009, someone paid $50 for 10,000 Bitcoins. He took a 50% loss.
BC: The dollar-denominated price of Bitcoins is volatile.
GN: So, I should buy them as a speculation.
BC: We don't call this a speculation.
GN: What do you call it?
BC: Buying the money of the future.
GN: Will it buy more things in the future than illegal drugs and programming?
BC: Of course.
GN: What is the evidence of this?
BC: It is the substance of things hoped for, the evidence of things not seen.
GN: That's the New Testament's definition of faith.
BC: Say, you really know your Scriptures!
GN: I do. This one comes to mind. "Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal."
BC: Right! Lay up your treasures in the cloud!
GN: But not in Silk Road or Sheep Marketplace.
It gets even more interesting from here on. Read the rest of the interview here: http://bit.ly/1bCOxNl