BITCOINS: Investing in the New Gold Rush

Written by Brittany Stepniak
Posted December 12, 2013 at 11:05PM

"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford 

History Re-told (Correctly, This Time)

 The history books, more or less, only really tell one side of the story: the government's G-rated version. But a closer look inside paints a much more controversial picture.

Sadly, for the most part, people find it easier to believe the G-rated version. Perhaps this is because those stories have been indoctrinated into us from the time we first began to communicate.

After all, world leaders are typically pretty smart people (please note: I'm generally speaking here). They have agendas of their own because they're controlled by the elite financiers — bankers and big corporations.

Bureaucrats face the difficult task of keeping the big-money guys happy while also convincing the masses that "everything is fine."

Conflicts of interests are bound to arise, thus, wars are waged, the public is lied to, and economies crumble.

Money is power. Power corrupts... and absolute power corrupts, absolutely.

Hence, we're living through a currency crisis that stems all the way back to the first half of the 20th century.

The wealth mirage is alive and well and I believe silver and gold investments are likely to heat up again after "QE5" (aka: "fed tapering" policies) proves to be yet another colossal failure.

But it's important to keep your expectations grounded in reality and diversify accordingly...

A Gold Standard is Just a Pipe Dream

Don't get me wrong, we — like most libertarians — love gold. We love the idea of an investment that has stood the test of time and can counter the vanishing value of the dollar.

We are perfectly aware of the fact that every dollar we pocket today is worth at least 97 percent less than when it first began circulating in 1913.

money chart

We Outsiders agree with Dr. Ron Paul who has so vigilantly fought for a return to a gold standard from the Nixon days of old.

But it's not going to happen.

 

An acute observer at The Silver Bear Cafe points out:

During the first half of the 20th century, each of four world leaders did the exact same thing within ninety days of their ascension to power. Each made it illegal for the citizens of their respective countries to own gold. Those leaders were: Mao, Stalin, Hitler, and Franklin D. Roosevelt. All four leaders occupy a position among some of the World's most evil clowns. Each was acutely aware of the restrictions that a gold standard imposed on their abilities to wage war. Each was, IMHO, a despicable despot.

Each instigated wide spread suffering and each did much damage, not only to their own countries (FDR invented the welfare state and allowed the central bankers to take over the country, which is how we got into the rosy economic situation we find ourselves in today) but, did much damage to other countries as well. Roosevelt was the first politician to figure out how to buy votes with the people's money, rather than having to spend his own. Clever Frankie. His "New Deal" will be viewed by future historians as the beginning of the end of our great republic. I must point out that, even though FDR moronically laid the seeds of our eventual destruction, everything did get better before it got worse.

In order to ensure they achieve their endgame goals, the world's financial and political leaders will continue to go through whatever means necessary –including currency debasement– to keep the system working in their favor (not ours).

That leaves investors stuck in between a rock and a hard place.

As we're witnessing what could very well be the death of the dollar, what are we to do? Is there something, like gold and silver, that has an intrinsic value come hell or high water? Are there alternative currency options for investors trying to stay one step ahead?

Ron Paul thinks so and so do we.

No Fees, No Banks, No Inflation

As a self-proclaimed avid believer in competing currencies, Ron Paul is excited about this brand new super-currency's potential to destroy the dollar.

Currently, bitcoins are one of the most popular alternative currencies (aside from silver and gold) and the idea is gaining strong momentum every hour of every day.

The reason Paul (and millions of other libertarians) support the Bitcoin movement is because people are free to make purchases without big banks breathing down their necks and demanding a slew of unnecessary fees for all institutions involved in the sale.

And because the Federal Government wasn't and currently isn't involved in Bitcoin creation or distribution, Bitcoin holders have no fear of inflation destroying its value.

A truly "democratic" currency, bitcoins are created, traded, and controlled by the people, for the people  not a corrupt group of plutocrats manipulating value for their benefit.

But for all you suspicious critics arguing "Bitcoin isn't money," level with me for a moment...

You might be interested to know that, just last week, a Florida man purchased a $103,000 Tesla Model S from a Lamborghini dealership in Newport Beach, California with the new digital currency.

The dealer's blog was quickly updated, letting the public know that someone had just purchased a vehicle with the electronic currency that's been dominating headlines in what some experts are referring to as the biggest "gold rush" of the 21st century.

And the Floridian referenced above isn't alone: people the world over are already using this new electronic currency to purchase things as mundane as an afternoon sandwich and as niche and sophisticated as fine art.

That's why Ron Paul asserts that the Bitcoin stands a good chance of going down in history as the destroyer of the dollar if the craze really heats up and people begin using them en masse. 

Technology and Innovation Breeds New Investment Opportunity

Other economists are increasingly curious, but growing to accept the notion that this currency could be bigger than anything we've seen since the Gold Rush of the 1800s. University of Michigan professor Miles Kimball recently said, "Bitcoin really shows governments are behind the curve... It demonstrates there's a demand for an electronic equivalent of cash."

And the Bitcoin is just the beginning... although it may be one of the most popular and successful virtual currencies to date, it certainly won't be the last.

CNN Money reports:

Bitcoin is hardly the first attempt at a digital currency that operates outside of state boundaries. Ebay's (EBAY, Fortune 500) PayPal plans to launch a digital interplanetary payment system. There's also growing support for a concept called seasteading, floating cities on international waters where business and innovation aren't held back by laws.

Millions of Africans, particularly in Kenya, make payments simply by texting one another. The widely used M-PESA system allows people to bypass banks and electronically transfer cash. Some even use mobile minutes as a form of currency.

Digital payments make buying items internationally a smoother process, because exchange rates are gone and there are no cumbersome bank regulations or fees. It also enables people to make payments in areas without bank access or where carrying cash can be dangerous.

We know how risky it feels to jump aboard something you don't feel you know enough about. 

But trust us, once you take a closer look and recognize it could mean future gains of 950%, you'll want to strongly consider moving out of some lackluster traditional investments and into this gold rush...

Farewell for now,

Brittany Stepniak Signature

Brittany Stepniak

Brittany Stepniak is the Project Manager and Editor for the Outsider Club. Her “big picture” insights have helped guide thousands of investors towards achieving and maintaining personal and financial liberties while pursuing their individual dreams in lieu of all the modern-day chaos.

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