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Overstock.com CEO Attacks Krugman: “Hopefully Bitcoin Will Destroy Central Banking”



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To paraphrase Dr. Paul

"The government hates competition". Whether or not bitcoin actually destroys the central bank, the concept and expanding use seems to be making TPTB nervous.

Cyril's picture

Eat that, "Professor" Krugman.

Eat that, "Professor" Krugman.

Bon appétit !

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Patrick Byrne

is a Ron Paul guy!

He made it public in both campaigns.

Ron Paul is My President

If true this comment is an

If true this comment is an amusing one from Overstock's CEO. How can the replacement of national central banks with a global networked currency destroy central banking? LoL In this particular case, an electronic network becomes the infrastructure for the currency and whoever controls access to the infrastructure ... With a traditional transaction based on personal contact and precious metals, the participants just need their mobility, product, metal and a gun. ;)

I don't believe that companies relying primarily on funding via electronic networking are exactly unbiased in their view of Bitcoin or its successors.

Ah, reality bites and the

Ah, reality bites and the ostriches react. ;)

You have

a point about "who controls access" to the infrastructure.

That's a real problem actually, regardless of Bitcoin (the Daily Paul could be blocked for example). That's why there is talk already of mesh networks and other ways to route around ISPs, which are increasingly becoming centralised.

So your point is fair. However, even with network access controlled it wouldn't mean controlling Bitcoin (although it could destroy it - shutting down the entire Internet is the only way to).

The potential problem is

The potential problem is similar to a bank holiday. It's true that control of Bitcoin itself might be more difficult than manipulating a fiat currency, but access to money is far more important than the manipulation of it. If you can't buy and sell because of a universal currency which bars entry, you're basically, well, screwed. ;) I've expanded on this idea elsewhere, e.g. gold-backed crypto-currency.

It's a derivative of the old adage, a bird in hand is worth two in the bush. If virtual currencies become ubiquitous, one day the price for admission might be a bit too much to pay. Today, access is basically a recurring payment to an ISP with either a credit card, check, or cash and the willingness to tolerate unconstitutional snooping by the NSA. In the future, access might entail additional constraints, e.g. biometric ID, restrictions on speech as a result of TPP as well as tolerating unconstitutional snooping by the NSA. Do you see a pattern here as the InterNet becomes ubiquitous due to gullible junkies' dependence on a virtual currency? Once physical fiat currencies are replaced with a global virtual currency as the alternative, two choices will remain. You either pay the price for accessing the global virtual currency or you try to survive by bartering valuable items if available.

Some of the readers will see. I guarantee it.

I have

news for you. What you describe is basically here already. In case you haven't noticed US dollars are virtual currency too. They create it with computers by pushing buttons, and people access it with bank routing numbers, ACH, debit cards, online bill pay, credit etc. You need ID like a driver's license for a bank account and now DMVs scan your thumbprint.

This is similar for all world fiat currencies. Anyway you can still use gold and silver coins since they are still valuable everywhere in the world. Cryptocurrencies won't replace gold and silver totally because at the end of the day they are not physical, and don't have thousands of years track record like PMs.

Full Circle

No, fiat currencies including the US dollar are NOT a virtual currency because they can exist in the form of paper outside an electronic matrix which snoops, invades, and controls the lives of its participants (subjects). It's true that a fiat currency can be virtualized, though, to the point where the paper is no longer required which is one of the points of my previous post. Once paper is no longer required, convertibility to a physical currency will be history. Also, as I stated in my previous post, use of previous metals will matter primarily in a black market as a form of barter once a global virtual currency has become ubiquitous and fiat currencies abandoned.

You're one of a few DPers who

You're one of a few DPers who talk sensibly about these topics, fiat money and digital money. Few, as in 10 or fewer DPers. Most DPers lead with emotion on central banking and fiat money as if this money's nature is bad. In leading with emotion, invariably these DPers dodge how our government became what and how it is.

To talk with people who are charged emotionally is difficult, a difficulty on here I have given up replying to on. So I applaud you in taking up these topics. I hope you stay on course. Many more DPers are in need of learning how the world works and -- albeit arrogantly sounding but whose substance is not and is borne from frustration -- of thinking, the predecessor to learning how the world works. Good job bringing up the nature of a thing then explaining its connection to life. Nice work, tpreitzel.

School's fine. Just don't let it get in the way of thinking. -Me

Study nature, not books. -Walton Forest Dutton, MD, in his 1916 book whose subject is origin (therefore what all healing methods involve and count on), simple and powerful.

I'm not much for internet purchasing, but

I will now consider shopping at Overstock.

The Sacramento Kings NBA......accept Bitcoin. End The Fed

The Sacramento Kings NBA......accept Bitcoin. End The Fed

The Sacramento Kings NBA team just became the first major professional sports franchise to accept Bitcoin, according to an announcement from payment processor BitPay.

http://money.cnn.com/2014/01/16/news/companies/nba-bitcoin/

isn't it illegal to

isn't it illegal to disrespect Authority?

damn skippy

One of us

I will certainly visit Overstock from now on.

This is

a MUST listen. It's not that long.

Also Overstock.com did $124K worth of Bitcoin sales in 24 hours when they started accepting it.

Who wants to bet that some federal prosecutor is having

a herd of interns combing through the federal regulations right now, looking for something with which to go after overstock.com?

“The welfare of the people in particular has always been the alibi of tyrants.” — Albert Camus

Cyril's picture

I am willing to bet that they started last year

I am willing to bet that they started last year, and just got one fresh 2014 memo that their bonus is in jeopardy if they don't find something...

in a timely fashion ... reaaaaaaaally quick.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius