Apr 182014
 

Ron Paul Bitcoin

Ron Paul today said

Though I don’t personally believe that Bitcoin is true money, it should be perfectly legal and there should be no restrictions on it, there should be no taxes on it

which isn’t that big of a ‘news’ per se, because Ron Paul has said this before about Bitcoin too. In fact, Ron Paul has said Bitcoin could destroy the dollar. Today, however, Ron Paul has written a big answer to the Quora question “Why does Ron Paul think Bitcoin does not fit the definition of money?” by saying the following:

Bitcoin is a very interesting subject because for many years in Congress I was a champion of legalizing competition in currencies.

We have a terrible monetary system today. We have a government that purposely counterfeits and debases the currencies and I believe that the alternative would be a competition. That means that anything that wants to substitute for the American dollar should be permitted. There should be no prohibitions; there should not be a monopoly and a cartel running our monetary system because it so often benefits the privileged few. We certainly saw this in the bailing out of the financial system where the wealthy bankers got bailed out it in this recent and severe recession. I am a strong believer in competition. Bitcoin is an introduction to that.

Though I don’t personally believe that Bitcoin is true money, it should be perfectly legal and there should be no restrictions on it, there should be no taxes on it. The people who operate Bitcoin would, of course, be prohibited from committing fraud but the people should be able to have competition whether it is a basket of commodities or crypto-currencies – it should be perfectly legal. For this to operate, we need to have freedom from government intervention when it comes to the Internet. I am concerned that the government ultimately wants to curtail the Internet and there have been attempts to do so.

The internet is the salvation for those of us who believe in liberty because it is an alternative way of getting around the system not only in the spreading of our ideas in this instance but in in terms of getting around the monetary system on the whole if they do permit crypto-currencies and other forms of transactions. So, this is something that we should all be concerned about whether we endorse it or not.

What we should all argue for is the use of freedom rather than having a monetary system with regulation domination that is run by a cartel and the special interests – that is the kind of system we have today. We want a system that truly challenges the government in their ability to take care of the very wealthy at the expense of the middle class and the poor.

However, as some Quora commentators have noted, Ron Paul didn’t actually answer the question at all.

Quora Ron Paul Bitcoin

He never answered the ‘Why’ part, just that he personally doesn’t believe Bitcoin is true money. Of course, it is well documented that Ron Paul loves precious metals and believes we should return to the gold standard. In fact, early 2012, he had over 64% of his portfolio in gold and silver mining stocks (which, in hindsight was probably a terrible investment). He has been a very strong advocator of returning to the gold standard and believes in commodity money, so it might be a while before he sees Bitcoin for what he is. In addition, he has admitted in the past that he doesn’t really understand Bitcoin.

Of course, it is still very early in the day to grant Bitcoin the status of a currency. Bitcoin can be a lot of things in addition to currency and is evolving at a rapid pace, morphing into a technological force like the world wide web of the early 90s. We’ll see where that road leads to.

In other news, it seems most of the main stream media, including CoinDesk, want to focus on the ‘not true money’ part of what Ron Paul said, I guess because it is more ‘clickworthy’. CoinDesk covered this article with the headline “Ron Paul: Bitcoin is not ‘True Money’“. I thought I’d focus on the other side of what Ron Paul actually posted on Quora!

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS
Apr 142014
 
Vircurex Starts Paying Interest on Deposits, But Should You Trade There?

Vircurex is one of the oldest cryptocurrency exchanges, and was established way before the explosion of altcoin exchanges that happened in the last few months. There was a time when the only real options for altcoin trading were btc-e, Vircurex and Cryptsy. However, today Vircurex has fallen out of favor, and not without some good [...]

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS
Apr 042014
 
Confessions of a Bitcoin Convert

This is a guest post from Joe Towner. Enjoy the read, and don’t forget to comment! When I first started researching Bitcoin to write a guide for small businesses, my knowledge of the technology and its applications were minimal. I understood the basic idea of a virtual currency, was baffled by the actual process of [...]

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS
Mar 312014
 
Get Ready for the Crypto Currency Convention in New York

Lots of things have happened since we first wrote about the first Crypto Currency Convention in New York that focuses on all crypto-currencies and not just Bitcoin. This conference will probably set a precedent for future crypto-currency events, and people in the community are watching closely. I am happy to report that the conference has [...]

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS
Mar 292014
 
Bitcoin Insurance is Trickier Than You Think

With Bitcoin going more and more mainstream every day (irrespective of the price. Seriously, stop obsessing about the price, up or down!), as a financial instrument (currency/commodity/thing of value/I-have-no-idea-what-it-is-but-I’ll-speculate) it’s only a matter of time before Bitcoin insurance comes along. Well, it sort of already did, and it’s a matter of time before bigger players [...]

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS
Mar 272014
 
Bitcoin Tug of War

A quote from Mark Andreessen during the CoinSummit in San Francisco caught my eye – “My prediction is that the Libertarians will turn on bitcoin in two years. It will be part of the mainstreaming.” It is amusing to me, considering Bitcoin has such a rich history already. Also, this comment appears to me to [...]

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS
Mar 182014
 
How to Buy & Sell Auroracoin: Auroracoin Exchanges

Here’s a comprehensive guide on how to buy Auroracoin and sell them, mostly on Auroracoin exchanges. Auroracoin really started the trend of ‘National Cryptocurrencies‘. The idea is to pre-mine 50% of the coin and distribute it to the people of Iceland. It’s a neat idea with some potential, but Auroracoin seems to have taken off [...]

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS
Mar 162014
 
How to Buy Bitshares

This guide on how to buy Bitshares will help you navigate the messy world of Bitshares and dealing with exchanges from where you can buy them. If you’re new to Bitshares and the concept, or to know more about Bitshares, read my detailed guide on what is Bitshares. Also, this is a document that I’ll [...]

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS