Bitcoin is the currency of the future.
In order to understand why this is true, there are two key pieces of information that a person must have:
- The first is an understanding of how money actually works: how it is created, how it enters the marketplace, and what exactly makes it valuable.
- The second is an understanding of the Bitcoin community and system.
The short answer is that Bitcoin does everything you'd like a currency to do, and it doesn't have any of the drawbacks associated with any of the other currencies available.
It is amazing acceptable as a currency to every honest and rational person who also really understands money, and it is a magnificent protest against everything that is wrong with politics, wall street, the global central banking system, and our grossly manipulated economy.
Oh, you want more details? Great!
Here's a great explanation in 104 seconds:
You want even more? That AWESOME TOO!
The below is a bit meater, but it's important information to understand the real problems that Bitcoin solves.
Every currency has it's own rules for it's creation. Some currencies are made out of a precious commodity that is inherently valuable (like gold and silver coins, or in the past: shells and jewelry), some currencies are paper for easy exchange but backed by a commodity (like gold or silver certificates), but most modern currencies are simply paper that is printed by a private central bank empowered to print a nations currency by that country's government.
Modern currencies enter the marketplace by being lent out through a series of banks that charge interest. The country's central bank prints the money and lends that money out to the big banks in the country at the "discount window" interest rate; these banks then lend out the money on consumer loans through their branch banks.
This system ensures that there is never enough money for all the people to pay off their debts. It ensures that there are always people who will be motivated to work for money. This system also allows the banking industry to basically control when there will be massive defaults and foreclosures. Defaults and foreclosures are built into the system itself. A quick visual example to demonstrate this: imagine if there was no money in a country of 2000 people, then half the people in this country all borrowed $1000 from their chosen bank, injecting $1M worth of currency into the country, and these individuals who received loans all agreed to pay back $1100 a year later (the loan plus $100 interest). The banks are going to get a vast amount of that money paid back to them, and the people who aren't as good at getting money will lose their assets which the banks will seize through foreclosure. The banks themselves did nothing to create value, they did not put up the money themselves, they borrowed it from the central bank, and they sold the FHA compliant mortgage to a federally insured government sponsored enterprise like fannie-mae or freddie-mac, which get bailed out at tax payer expense... so the banks don't really have to deal with foreclosed properties either. The foreclosed properties end up going to HUD, and someone else will take out another loan to buy them.
This system works incredibly well for the banking industry, they get to collect interest and seize properties without having put up any capital themselves; their loses are pushed onto the tax-payers through bailouts; and their profits accrue to shareholders.
Politicians accept this mostly because they don't understand it, or if they do, they have positioned themselves to benefit from it.
This system provides those in the government (and those with connections to the government) with easy access to new money; The Federal Reserve, a private company, with private and secret shareholders, is empowered by the federal government to be the sole printer of Federal Reserve Notes (US Dollars), and in exchange, the Federal Reserve MUST purchase any treasury bonds that the US Treasury requires it to purchase. This arrangement means that the US federal government may issue an unlimited number of US Treasury Bonds without fear of ever not having a buyer for them.
The four reasons that US Dollars (Federal Reserve Notes) are considered valuable are:
US Citizens are forced (under penalty of asset seizure and imprisonment) to pay taxes using US Dollars
EVERY US Dollar currently in existence (and many more that are not in existence) are owed as debts to banks who were able to create loans as the vehicle for injecting money into the economy. (Thus fear of asset seizure [foreclosure] drives debtors to get US Dollars to pay off their debts).
The US Court System has established that Federal Reserve Notes are "Legal Tender for All Debts Public and Private", this means that all penalties and fees imposed by any government body in the US must be denominated in US Dollars, and any debt may be discharged in US dollars. (This means a contract that was originally between two people and said that Bob would pay Jean one ounce of 0.9999 gold, if Bob fails to pay and Jean takes him to court, the court will assert that Bob owes Jean a debt, and the amount will be denominated in US Dollars, and Bob will be able to discharge his debt to Jean in US dollars. This is the meaning of "Legal Tender for All Debts Public and Private") AND FINALLY
Other countries are forced (under OPEC rules) to use US Dollars for making exchanges of oil; this dramatically strengthens the international demand for US Dollars.
The basic reason US Dollars are valued is because the people agree to these rules. Debtors cannot simply walk away from their debts (though now, more than ever, people are); Tax Payers cannot pay their taxes with any other currency; and individuals who are found liable in a lawsuit are required to pay in US Dollars. All of these actions fundamentally introduce the use of real or threatened police force against anyone who does not deal with Federal Reserve Notes in the US (and similar laws exist in other countries).
Additional information how how force and covert aggression are used against countries that resist participation in the Global Banking System, you might consider reading: Confessions of an Economic Hit Man.
The bottom line is that most modern currencies are injected into society only with the creation of debt, and then the government uses threat of asset seizure and imprisonment and taxation and fines/fees to ensure that the currency is accepted.
Bitcoin is a purely electronic currency. It is created using very precisely controlled and agreed upon algorithms that are open source and totally transparent. No one is forced to use it, and it is not based on debt.
It is valuable precisely because rational and honest people don't want to manipulate, control, and enslave debtors. Bitcoin is the ultimate economic self-defense against dishonest individuals who have found their way into leadership positions within the banking industry, individuals who have positioned themselves as the Gods of Money, and who seek to use violence and threat of asset seizure against individuals who have had difficulty earning sufficient money to pay their debts (debts largely entered into as a pledge on the part of the debtor, and for which the creditor did little more than authorize an electronic funds transfer).
Bitcoin is fast, global, secure, largely anonymous, and less expensive than nearly any other transaction processing services (compare rates with credit card merchant services, paypal merchant services, and the many other bank fees associated with having an account).
Bitcoin is valuable because the community of users all agree that it is valuable. And every person who uses Bitcoin, who recognizes the value of this idea, strengthens the value of the currency. It is an idea whose time has come.
Create a Wallet, let people know that you accept Bitcoin.
Learn more about Bitcoin.
Consider purchasing Bitcoin on an exchange market.
Consider operating a Miner.
Buy something with Bitcoin.
Help others discover Bitcoin as well.
Bitcoin is a perfect opportunity to help educate others about the realities of Money.
Continue your own education.
An excellent documentary that presents the almost unbelievable and borderline terrifying history of money is "The Money Masters" ( http://www.youtube.com/watch?v=lXb-LrVkuwM )
We are a community of individuals who are honest, strong, and fully grounded in reality.
You are invited and welcome to participate in the paradigm shift and the revolution.