When Bitcoin Hit $100: CNBC’s 2013 Coverage

you know you confiscated a few billion dollars out of private bank accounts and you print a couple trillion dollars and all of a sudden you know what happens people start to worry so out of this worry we have something called the Bitcoin bitcoin is an electronic online digital currency was created about three years ago kind of flew under the radar now it's starting to actually gain some traction you exchanged your dollars to exchange your euros whatever you go on to these networks and they it's an accepted currency and it's zooming and value lately just unbelievable at how much this has taken off and and there are places that are beginning to actually accept this sort of universal digital currency kind of operates in the shadows not regulated but it's an it's a total outgrowth of people getting start starting to get worried about these currency crisis debt crises where are these things accepted still not a lot of places I checked out online not a lot of websites that you would recognize but the places are kind of novelty clothing gaming sites yeah wait for it porn some of those places but you know there are a lot of drawbacks are a lot of fears that I'm sure that our guests are going to talk about but this tells you how really insecure people are in this age of debt and currency crises and all the other things that we have going on in the world first I have to give Bitcoin creators credit at least they they know enough not to trust fiat money that's controlled by our government but we they're trying to reinvent the wheel and they've come up with a flat tire we already have a perfect real form of money and it's called gold money has to have four elements it has to be very rare indestructible divisible without losing its purchasing power and cannot be increased by Fiat and and bitcoins fail on the first two they are not rare and they are very much destructible had paypal invented Bitcoin we don't be heralding it as the most important financial revolution since the internet isn't the credit card perhaps and I guess I would say as for those first two points as to it being destructible and rare I guess I don't know if I agree with that I mean gold is only rare because it's physically scarce but Bitcoin is rare because it counts on the scarcity of CPU time and so I think it like why is that so destructibility I think that's also sort of in question what are the chances of someone coming up with a counterfeit Bitcoin and they present that to an end user and they're accepting this this phony Bitcoin I guess the chances would be astronomically low and that's the whole design I mean the way that you the way that you create a Bitcoin is that you basically have to find a larger rare number bigger than any of the other Bitcoin out there and so every Bitcoin the next Bitcoin is even harder to create and so I'd say right now it requires vast amounts of CPU is generally through Amazon Cloud and things like this to create the next Bitcoin so be exceedingly impossible or exceedingly difficult to create so hack so hacking Bitcoin could be a problem but what about someone coming up with a counterfeit that end users don't recognize as being counterfeit and then of loading the purchasing power of all just yeah you guys I guess one of my concerns here is – is that you know there's a lot of stories about drug dealers using these kind of things and I think it's just a matter of it's not regulated it's not controlled the whole the whole Bitcoin market is about a billion dollars it's a novelty for the Geek Squad I can assure you if these became well promulgated then the US government would shut it down and just just to give alright just to give our viewers some perspective there's about four trillion dollars in currency trading every day and as Michael said it's about a billion dollars worth of bitcoins it has quintupled in value over the last year just just since the the Cyprus thing came up it's up over 20 percent or over the last month or about a couple months it's up over 40 percent so it's actually getting some visibility out there again you can go online and go to places where bitcoins are accepted and there are dozens of places no websites that you would actually do that you know if I said them oh yeah I know that but it's just gonna be very interesting to see just how much this catches on it just sounds so silly but maybe it's not David how much of your wealth will you place in bitcoins what percentage would you believe that a for any sort of a highly diversified portfolio something like Bitcoin is going to play an increasing role if it is widely promulgated and the exponential increase of someone trying to hack it because it'd be many more people trying to hack it goes up well I guess you're assuming that merely that because you can theorize the possibility that's going to happen I would say your purchasing power can be wiped out in a nanosecond and that's why it would never be widely accepted in this I hear you say that but that doesn't make it true and I think that there are people who spend a lot of time on this that might know this topic maybe a bit more and who believe

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