Fox News: More than $1 billion dollars worth of a digital currency known as “bitcoins” now circulate on the web – an amount that exceeds the value of the entire currency stock of small countries like Liberia (which uses “Liberian dollars”), Bhutan (which uses the “Ngultrum”), and 18 other countries. So what is a “bitcoin,” and why would anyone use it?
Unlike traditional currency, bitcoins are not issued by a government or even a private company. Instead, the currency is run by computer code that distributes new bitcoins at a set rate to people who devote web servers to keep the code running. The bitcoins are then bought and sold for regular U.S. dollars online. Because of what’s going on in Cyprus and Europe, people are trying to pull their money out of banks.
Opinion: An article in Laissez Faire, “Government paper is failing at a faster pace than anyone imagined would have happened in the past year. The Cyprus disaster took nearly everyone by surprise. No close observer believes that the latest bandage amounts to anything permanent. Moreover, the Cyprus save sets in place an incredible precedent: Bank deposits will hereafter be treated as government property first and belong to the depositors only at the discretion of the masters of the money.”
Let’s take a leap into a not-so-distant future scenario. Another EU nation, perhaps Italy, Greece or Spain falls into a Cyprus type default. Government bureaucrats, having already set a precedent, confiscate deposits causing a massive run on the banks. The Euro collapses in value and global markets are melting down.
The US dollar, still the cleanest shirt in the dirty laundry bag, rises uncontrollably causing widespread panic. Interest rates begin to rise despite massive Fed intervention projecting a $2 trillion US deficit for the coming fiscal year.
Bitcoins or some other electronic digital currency begin to explode in value as savers rush to put money anywhere but banks. The government, sensing loss of control, places internet restrictions on all transactions in digital currency. Paper currencies collapse and a UN global financial board is quickly formed to monitor and control all buy/sell transactions in the now global digital currency.
The new UN agency board is run by four members representing the US, UN, EU and Russia. The board nominates Mario Draghi, Chairman of the powerful European Central bank to the leadership role. Draghi in English … dragon.
Only those who receive a mark of identification can gain password access to digital currency.
(thanks to one of our readers for sending this in)