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BERNANKE: Bitcoin ‘May Hold Long-Term Promise’

Excerpt from Bernanke's letter to Congress:

Historically, virtual currencies have been viewed as a form of “electronic money” or area of payment system technology that has been evolving over the past 20 years. Over time, these types of innovations have received attention from Congress as well as U.S. regulators. For example, in 1995, the U.S. House of Representatives held hearings on “the future of money” at which early versions of virtual currencies and other innovations were discussed. Vice Chairman Alan Blinder’s testimony at that time made the key point that while these types of innovations may pose risks related to law enforcement and supervisory matters, there are also areas in which they may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.

Full letter at The Liberty Crier



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Who Cares What This F.U.C.K.H.E.A.D Says

The moment I think "Bernanke's opinions are valuable" will be the same time I think "rape is the same as love-making."

out of context

he was commenting on someone else's testimony on virtual currencies from back in 1995 - which means he wasn't talking about bitcoin, but the concept of virtual currencies in general.

He also noted that they "pose risks related to law enforcement as well as supervisory matters"

both of these things are true, so what's the big deal?

the rest of his letter was talking about the fact that the fed does not currently have the right to regulate the currency. This in my view lays the groundwork for new legislation while not coming off too pushy.

anyone wanting to dump their 'useless' 'fiat' 'risky' 'fed friendly' bitcon please do so by transferring to this address: 1CSiKRvHaBseqg1nz8spPL37q9tAhxtq76

thanks!

- Grow Mushrooms at Home
http://subfarms.com

...

They definitely want a electronic credit based system. How they will convince the people to take it as real value is the test of humanity.

Are we human anymore?

All rights reserved and no rights waived.

A move towards a cashless society?

A move towards a cashless society? Electronic currency only? hmmmmmm...

Beware Of Hackers !

Seriously, what's the B man

Seriously, what's the B man going to say? "BTC is going to ruin our whole bankster scam! Please don't use it." ??

He can't very well say that, can he? The head of the fractional banking system HAS to exude confidence and pretend it's no big thing.

Besides, if they really wanted BTC to take over they wouldn't be trying everything they can to regulate it.

“Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.” William Pitt

THIS S.O.B.????

better look out!!!

NOSHEEPLE

correct me if I am wrong

But in the process of storing bitcoins vs gold.. gold has a significant advantage as all it takes is a magnet to destroy bitcoins

not really

As long as you have a backup wallet you can access it. You can stick a wallet in a flash drive, hide it, and have one on your pc, wherever, and you will be safe knowing you can access it. Just make sure its encrypted with a safe password and you can just have it stored online. Bitcoin is stored by everyone, a wallet is just a key that unlocks your bitcoin.

End The Fed!
BTC: 1A3JAJwLVG2pz8GLfdgWhcePMtc3ozgWtz

With all due respect this

With all due respect this whole concept is for techies only it seems to me...as long as the power to your computer holds everywhere in the chain of communication. A new form of bank robber is the potential of the future. This game is not for the poor, elderly or those lacking in cyber knowledge like me. It is a new budding industry for the elite in my mind.

Amschel Rothchilds famous quote

"Give me control of a nations money supply, and I care not who makes it’s laws." How many BitCoins can be mined with a super computer the size of four city blocks or bigger?

Then it follows as the night the day, power can be distributed.

Markets have long used gold, silver and bronze coins to distribute purchasing power.

In the Pullman town, the company issued the script to be used in the company store. Central control of the purchasing power.

BTC can work over airwaves and on phone modems, or by letter.

So taxpayer money could be used to mine bitcoins?

If Mining bitcoins is pay for maintaining system performance by building blockchains, then this would good thing for BTC users.

Competing currencies allow more prosperity for everyone.

Free includes debt-free!

Are u implying the nsa will

Are u implying the nsa will become bitcoins first central bank? :]

Banks holding trillions in excess reserve.

The only tool they have is to manipulate to awaken bearish animal spirits.

They are doing it with gold and silver perverting the 100 year averages and ratios.

Can they squash the BTC bug or will it render the FED irrelevant?

Free includes debt-free!

the popularity of bitcoin is

the popularity of bitcoin is in the public's search for a non-corrupt currency that is not tied to any other paper currency, but bitcoin is not the right solution.

Bitcoin in its infancy was promoted like a prized fight

fun to believe that it grew organically on its own. But you have to wonder who was paying to promote it out of the gate.

same can be said for gold

Can you use federal reserve notes to purchase gold? Can you use other central-bankster fake-currency to purchase gold?

Can we trust that criminals with licenses to print money aren't buying up gold and manipulating this market?

I am not a holder of bitcoin at the price it's at now, I believe it will crash, but we need to have competing currencies, so I hope it does not totaly go away.

Has anyone here ever listened to George Whitehurst Berry when he was on GCN.com?
He would talk about the history of past currencies that where successful. Anyone know what happend to him?

Bitcoin

I hope a lot of you made a lot of money from this. I never thought much of it, still don't. I see that it has uses, if you are hiding wealth, trying to transfer wealth by escaping a country with your money without having to carry it with you, it makes total sense to use bitcoin to do it. Currently the price is at 500, as high as 900 per coin. Absolutely insane pricing for a non tangible asset. I would cash out now. Maybe not all holdings but take some profits from it. Don't let this thing collapse to where you get nothing. I still don't feel its really worth anything. Obviously other people feel otherwise, make some money but watch out for a big downfall. When prices skyrocket like this, people usually are way more willing to sell out than hold on and a price collapse can happen very quickly. Good luck all you risk takers. :)

Digital currency death knell

Helicopter Ben's endorsement is all I need to know about Bitcoin, especially after he told Ron Paul that gold is not money when central banks around the world hoard it.

An all-digital currency is a central banker's wet dream.

...

I called it first!
http://www.dailypaul.com/comment/3263628

All rights reserved and no rights waived.

Denise B's picture

I totally agree with

your comment. If Ben Bernanke is singing it's praises, then I now have no doubt whatsoever, that it should be avoided like the plague. I've been kind of surprised by how many in the liberty movement have been so quick to jump on the bitcoin bandwagon. It's fiat money, and even worse digital. The final step to creating a cashless society is converting all money to digital form. Once that happens, any chance of hiding and preserving your assets vanishes and it becomes way to easy for the TPTB to gain access and freeze your money or even worse steal whatever you've got. Bitcoins can not be locked in a box, or hidden in a mattress or buried in the back yard. If we have a catastrophic grid failure, you won't be buying gas or food with your bitcoins. I've had warning signals going off in my head ever since I first became aware of this new idea of a digital currency, and Ben Bernanke's endorsement has fully convinced me that my instincts are correct. Why would the chairmen of the Fed ever endorse something that could in any way threaten his way of life, or the people that he works for? How, in this age of mass deception, do we really know who started or controls it? We sadly live in a time when no one can be trusted and I'll stick to currency that I can hold in my hand, including gold and silver coins, thank you very much.

SteveMT's picture

This Bernanke comment is the kiss of death for Bitcoin.

Bernanke loves fiat currencies of all shapes and sizes. He has never been right about anything.

The Bernanke endorsed? SELL

The Bernanke endorsed? SELL SELL SELL

What if

What if the value of BitCoins was boosted on Wall Street as to isolate or define more prominently the primary holders of BitCoins ... ?

it's another form of fiat...

I don't understand why people are going along with this... Bitcoin is the elite's next control-currency.

You'll not be able to store any real wealth (it'll all be electronic) and you won't be able to make any kind of trade off the grid. 100% of the transactions will have to be electronic and of course they can be tracked easily. There's simply no way THE BERNANK would say anything even remotely positive about bitcoin unless they had a plan to control it.

Bitcoin is the enemy of liberty. (watch the downvotes roll-in)

At their inceptions, the #Liberty, #OccupyWallStreet and #TeaParty movements all had the same basic goal... What happened?

That's not what that word means...

Fiat
n.
1. An arbitrary order or decree.

Federal Reserve currency is fiat money because it is given value by "an arbitrary order or decree." Bitcoin is given value by voluntary cooperation. It is the antithesis of fiat currency.

that's how the arbitrary order or decree works...

that's how the arbitrary order or decree works... through voluntary cooperation.

You can keep trying to rationalize why this electronic code has value but I can't eat it, burn it, store it or trade it without technology.

It has no value.

At their inceptions, the #Liberty, #OccupyWallStreet and #TeaParty movements all had the same basic goal... What happened?

TwelveOhOne's picture

Sillyness!

To say that something "without technology" has no value is silly.

That's like saying my eyes are completely worthless because I cannot see without the technology of glasses.

If glasses everywhere were destroyed, then what's the point of having eyes, they have no value!

I also think you are incorrect when you state that voluntary cooperation leads to arbitrary orders or decrees.

You can keep trying to rationalize why you missed out on the past opportunity -- or, you can get on board and ride this thing to infinity and beyond! (Yes, exaggerating; and don't put everything in, either.) Many projections have been made showing Bitcoin's value relative to Federal Reserve Notes will approach $100,000 or more. Of course they're just projections, as is the projection that the Sun will EMP us.

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

Can you measure the value of

Can you measure the value of bitcoins in anything other than fiat currency? What will it be "worth" when the fiat currencies with which this competes are gone?

The reason bitcoin is gaining value is because people are dumping the other fiat currencies, but replacing one version of fake money with another doesn't change anything or improve anything. It's just a gamble that you're picking the correct next fiat currency.

it is NOT a means of "storing wealth" any more so than collecting beanie babies would be. It's just a fad.

At their inceptions, the #Liberty, #OccupyWallStreet and #TeaParty movements all had the same basic goal... What happened?

TwelveOhOne's picture

Measurements

A ruler should be 12 inches long; an inch should never change distance.

Federal Reserve notes are not a good ruler. They have lost 98% of their value in the last 100 years (which makes sense because the Federal Reserve has a contractually-guaranteed 6% profit annually, and they've been printing on average 7.4% per year, so even though they're removing value from our money supply on an ongoing basis, they're printing more money so is looks like we're doing better -- "the Dow is at an all-time high!" etc).

Yes, the value of Bitcoins can be measured in many currencies, including other crypo-currencies. See http://btc-e.com, you can trade Bitcoins there for USD, RUR, and EUR; and LTC, NMC, NVC, TRC, PPC, FTC, and XPM. Other sites trade for other currencies (like http://btcchina.com, for instance).

There actually have been instances when currencies have disappeared from trading markets -- in the past, with fiat currencies, and recently, as can be seen at http://btc-e.com in the "Latest news" section, the second headline is "Closing the trading of currency pair, TRC/BTC". I have seen other crypto-currencies go away as well, there and at http://cryptsy.com, where one can trade crypto-currencies for other crypto-currencies (one would use other sites if one really needed to convert it back to fiat).

It may be a gamble, but then so is storing your money in precious metals, which can be stolen. Or more simply, the next breath you take may contain the pathogen which kills you. But that shouldn't stop you from breathing.

Most of my wealth is stored in my brain. And most of that, I share freely. It seems Bitcoin is extremely valuable. Not everyone may see it that way, but I will try to educate where I can.

Collecting Federal Reserve Notes is NOT a means of "storing wealth" any more so than collecting Beanie Babies would be, either! I would bet (and have) that Bitcoins will outlast the Federal Reserve and their printing presses.

Edit: I made a post based on your comments here; it's not directly related, it was an article I had seen in the "trollbox" at btc-e, regarding the recent fluctuations (and the ones back in April) were due to Mt. Gox's lags: http://www.dailypaul.com/305841/bitcoin-fluctuations-due-to-...

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)