Flipping a Bitcoin

Heads– I win, tails- you lose     —  Anonymous

Bitcoins are a useless (superfluous) product, since money already exists. Basically, supercomputers use (say) $100 worth of electricity to produce $1 in bitcoin. Since this data-mining activity uses so much energy (resources), the number of bitcoins is capped. This creates a tangible market for trading & speculation– in a useless commodity. This is a classic Ponzi scheme, and it defines contemporary capitalism. It is of importance to understand, because it may be (?) the bubble that bursts everything.

Blockchain technology is “secure by design,” providing a rolling ledger of activity that can’t be altered, without altering all the other blocks after it. Thus tampering is difficult, while also easy to detect. This new technology in the market has all the financial speculators in a frenzy for obvious reasons, as those who use blockchain are more efficient & protected.

The history of Bitcoin is very similar to Napster in many respects. Both appear to have been developed by computer geniuses who had ambitions of bypassing governments, banks, and established industries in their direct (peer-to-peer) delivery of money (bitcoins) or music (mp3’s) through the internet.

On August 18, 2008, the domain name “bitcoin.org” was registered, and in November that year, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System was posted to a cryptography mailing list. Nakamoto implemented the bitcoin software as open source code and released it in January 2009.

The identity of Nakamoto remained unknown until a high-profile article in Newsweek in March of 2014, by investigative journalist Leah McGrath Goodman identified Dorian Prentice Satoshi Nakamoto, a Japanese American man living in California, whose birth name is Satoshi Nakamoto, as the Nakamoto in question. [1]

Satoshi Nakamoto has a murky past with many stints working in aerospace and other sophisticated computer related projects for the US government, most of which remain classified. Hence his unwillingness to admit he’s the creator of bitcoin, as it will bring unwanted media attention to him.

The purpose of blockchain technology is to maintain anonymity & privacy, the intent of its creator. The irony is, the creator became infamous in the process. Nakamoto is sitting on 400 million bitcoins at the height of the financial frenzy, and he refuses to cash them in– on principle.  Consider that, as you look at Satoshi Nakamoto’s picture– as published in Newsweek:

Bitcoin has been owned by Gavin Andresen since 2010, when Nakamoto handed over the keys to him. Apparently Andresen was one of Nakamoto’s colleagues in writing the computer code for blockchain. Everything was done online & anonymously, according to all sources.  Andresen stated he then sought to decentralize control, saying: “As soon as Satoshi stepped back and threw the project onto my shoulders, one of the first things I did was try to decentralize that. So, if I get hit by a bus, it would be clear that the project would go on.”

Andresen (above) established the Bitcoin Foundation, an American nonprofit corporation in 2012, with the stated mission to “standardize, protect and promote the use of bitcoin cryptographic money for the benefit of users worldwide.”  This organization is connected to the Cato Institute, the CIA, and other murky deep state entities.

Here are some other revealing quotes form the 2014 Newsweek expose:

He {Nakamoto} doesn’t like the system we have today and wanted a different one that would be more equal. He did not like the notion of banks and bankers getting wealthy just because they hold the keys,” says Andresen.

Andresen says. “Overall, I’ve made about $800 per penny I’ve invested. It’s insane.”

Gavin Andresen & Satoshi Nakamoto email exchange, April 26, 2011:

“I wish you wouldn’t keep talking about me as a mysterious shadowy figure,” Nakamoto wrote to Andresen. “The press just turns that into a pirate currency angle. Maybe instead make it about the open source project and give more credit to your development contributors; it helps motivate them.”

Andresen responded: “Yeah, I’m not happy with the ‘wacky pirate money’ tone, either.”

Then he told Nakamoto he’d accepted an invitation to speak at the Central Intelligence Agency headquarters. “I hope that by talking directly to them and, more importantly, listening to their questions/concerns, they will think of Bitcoin the way I do – as a just-plain-better, more efficient, less-subject-to-political-whims money,” he said. “Not as an all-powerful black-market tool that will be used by anarchists to overthrow the System.”

From that moment, Satoshi Nakamoto stopped responding to emails and dropped off the map.

Bitcoin is pseudonymous, meaning that funds are not tied to real-world entities but rather bitcoin addresses. People who want to remain anonymous and hide their transactions are attracted to this form of currency. These groups include intelligence agencies, the mafia, drug dealers and their money laundering operations, as well as other financial swindlers wanting to avoid paying taxes. The popularity of bitcoins is its ability to purchase illegal goods anonymously.

Bitcoin uses an obscene amount of electricity in its data mining. As of November 2017, the global bitcoin mining activity was estimated to consume 3.4 gigawatts [!] per year.
Bitcoin miners have set up in places like Iceland (below), where geothermal energy is cheap and cooling Arctic air is free. All this produces more global warming, and no useful commodity. In every sense, bitcoin is fake money.

By using a blockchain, bitcoin became the first digital currency to solve the double spending problem without requiring a trusted administrator. Double-spending is a potential flaw in a digital cash scheme, in which the same single digital token can be spent more than once. [2]

The use of blockchains promises to bring significant efficiencies to global supply chains, financial transactions, asset ledgers and decentralized social networking. The disadvantage is that a private blockchain (most likely) already controls 100% of all block creation resources. If a hacker attacks or damages the blockchain creation tools on a private corporate server, they could effectively control 100% of that network and alter transactions however they wished. That has profound implications during a financial or debt crisis, like 2007–08 where politically powerful actors make decisions that favor some groups– at the expense of others. Just like a Ponzi scheme.