Helping Hugo Understand Bitcoin…to SAVE MEXICO!!

Before I go too deep into this article I'd like to make one thing very clear…I like Hugo Salinas Price because of the awareness he has brought to the "Silver as Money" story and for what he is trying to do in his home country. His attempts to explain to the Mexican Congress and the people how it could introduce a 1 ounce silver coin in parallel with the Mexican Peso has opened at least a few eyes to the potential for a stable currency in a very unstable fiat monetary system. So Bravo Hugo!

Having said that, Hugo's latest article entitled "What is a Bitcoin?" had me shaking my head and asking myself…

Maybe this is why Mexico is still a country in economic distress after exporting 20 Billion ounces of silver out of their nation in the last 100 years…

THEIR LEADERS HAVE NO CLUE AS TO WHAT IS GOING ON!

Yes, that's kind of a harsh statement but I'm sure that Hugo would agree with me that the time for niceties is OVER. The Banksters are destroying our future and until we start to THINK and ACT SMARTER they will continue to wreak havoc on our countries and our lives.

First, please read Hugo's article that has been published on many of the popular gold and silver websites and well as put out by my friends at GATA…

What is a 'Bitcoin'? by Hugo Salinas Price
http://www.plata.com.mx/Mplata/articulos/articlesFilt.asp?fiidarticulo=273

Although I believe his intent was to distinguish the vast differences between Bitcoin and precious metals, it is painfully obvious that the title of this article is something that Hugo should have ENDED WITH as he really knows very little about what Bitcoin really is. His tortured argument emphasizes the more widespread truth that Bitcoin detractors have very little understanding of what Bitcoin is and what the new technology is capable of.

Here's my take on a few of the "misunderstandings" Hugo puts forth about Bitcoin in his article:

A "Bitcoin" is a molecular magnetic field on a computer memory.

What a strange way to describe a crypto-currency…or even how computers store and process data. Sure, when you get down to the smallest component of computer data storage you find magnetized "bits" representing a 1 or 0 but how does that represent the essence of Bitcoin? It's like saying that that a 1 oz US Silver Eagle is a conglomeration of silver atoms arranged in a circle. Interesting but hardly relevant to explain the nature and meaning of a US Silver Eagle.

The "Bitcoin System" allows a person to purchase one or more Bitcoins for fiat money and to move the purchased Bitcoins around the world, from one computer to another, free of interference by any governmental agency and independent of all banking systems.

Sounds pretty cool to me…and I'm sure that Hugo likes that part of the Bitcoin Protocol although I've never heard it called a "Bitcoin System" and, like silver, you can purchase fractions of Bitcoins and you don't have to buy a whole one. Also, Bitcoins are NOT moved from one computer to another but rather transactions are recorded in the Blockchain which is a public ledger of every Bitcoin transaction ever executed. Every computer that holds the Blockchain updates the transactions so your Bitcoin is on EVERY computer that has downloaded the Blockchain and not solely on your own computer.

Those who promote the Bitcoin System sing the Bitcoin's praises as being a money that is free of any interference or influence by any government agency or monetary authority, and the owner's Bitcoin property is known to no one but the owner. Secrecy and privacy are the Bitcoin's great merits.

Again, sounds like a great thing, but here's where Hugo begins to lose touch with reality in his understanding of Bitcoin...

To enhance the desirability of the Bitcoin, its promoters have engaged in fraudulent advertising. They present the totally imaginary Bitcoin on the Internet as a pile of shiny gold-colored coins labeled "Bitcoin".

Huh? "Imaginary Bitcoin?" There is nothing imaginary about Bitcoin. Just because it exists on computer hard drives does not mean that it doesn't exist. It's like saying that this article is imaginary. "Fraudulent advertising?" Does Hugo really think that people are going to accidentally mistake a gold coin for a Bitcoin because some marketing guy used a gold colored coin as the first Bitcoin logo? At first it sounded like some kind of petty jab or maybe even a joke but Hugo continues to run with it as if it was some very nefarious deed.

The deception is calculated to have prospective buyers of Bitcoins and actual "owners" of Bitcoin balances think of these brassy, gold-colored coins when dealing in Bitcoins, thus confusing them with images of non-existent coins. The promoters want the public to associate the imaginary digital Bitcons with something tangible. This is most certainly fraudulent advertising.

Wow! Is he dealing with a full deck here? Come on Hugo, are you going to sue the guys who invented "email" because they used the word "mail" in the name and utilized a picture of an envelope as it's emblem (which most all emails use now!). Hugo seems to be digging for dirt on Bitcoin and coming up totally void of substantive material here. But there's more...

Additionally, Bitcoins are promoted as free of inflationary risk, for the fanciful reason that the Bitcoins are "mined" - evoking the strenous labors of gold-miners in their dark caverns - by specialists who must rack their brains to "mine" Bitcoins and produce new, additional digital Bitcoins to contribute to the Bitcoin System as their property. The idea is to enhance the value of Bitcoins because they are very hard to "mine". The fact is, that scarcity does not necessarily make a thing valuable. Nor does the work involved in "mining" them give them any value.

First of all, Bitcoin was never promoted as free of inflationary risk but rather there is a set number of Bitcoins that can ever be created -- 21 million. That is set in the Bitcoin Protocol so the inflationary aspects are set and understandable. At current Bitcoin production rates all 21 million Bitcoins will be totally "mined" by the mid-2030's. The term "mined" is actually a very intentional and appropriate term for what is being done. No, it is not a physical labor but it is an intellectual one that involves solving increasingly difficult algorithms to produce new Bitcoins which is not an easy task. I agree that scarcity does not necessarily give anything value but it is a necessary quality of sound money and the Bitcoin Protocol has solved the scarcity issue which is the big reason that this crypto-currency has become so popular.

There is a reason why the Bitcoin has obtained a measure of success: all Bitcoins are molecular magnetic fields on computers, just as all "moneys" today, in banks around the world, are only molecular magnetic fields on computers. So the Bitcoin is simply a new scam offering a new, self-proclaimed imaginary digital "money", which is in competition with another huge, established scam also offering only imaginary digital "fiat money".

Sorry Hugo. Here's where you are 100% wrong…and you KNOW IT! Money today is DEBT. Debt on the balance sheet of a bank. Debt on the balance sheet of a country. Debt on the balance sheet of a corporation. Money today is debt and with all debt there is a credit that must be relied upon to give that money value in the future. If the credit behind the debt fails the money fails.

Bitcoin is nobody's DEBT. There is no underlying credit that must be relied upon. There are no central bankers determining the value of Bitcoin. It is a "decentralized" currency and that's what Hugo fails to understand. Bitcoin is revolutionary in this aspect because it has all the transportability aspects of our current electronic monetary system without the risk of debt default.

That's a BIG ONE and Hugo needs to understand this to support any comparison he wants to make about Bitcoin and our current electronic monetary system.

You own Bitcoins? Have fun! You will be crying, at some point down the road, but you will be able to cry secretly and privately, with no one the wiser, when your dreams of secret wealth prove to be just that - dreams.

But Hugo…there are millions of us already! We understand Bitcoin like we understand gold and silver. We are preparing for the collapse of the current system and we are building out the infrastructure to USE Bitcoin as an easy and secure means of exchange after the crash ALONG with gold and silver. We need no permission to prepare our "free markets" in Bitcoin. There is already enough of us to run commercial transactions safely and efficiently without anymore people joining the Bitcoin community. We are self sustaining and the fact that some people do not want to participate in Bitcoin is of no consequence to us users.

You see -- long after the banks fail, long after the economy collapses, long after our leaders are dragged from their chambers -- our Bitcoin assets will still be sitting there on those same "molecular magnetic fields" ready and able to take over when the old system dies. Bail-ins, bail-outs, nationalization, confiscation, failed currencies, failed banks, closed ATM's...none of this will effect the use and efficiency of Bitcoin.

Bitcoin provides Individual Sovereign Immunity to the old ways!

But don't worry Hugo -- I'll sell you one of my Bitcoins for A FEW TONS OF SILVER when you need one!

It is clear that Hugo has no clue as to what Bitcoin is, how it works or what it will be used for in the future but the SADDEST thing is that Mexico is once again being lead astray from saving their monetary future by misguided leaders.

Any student of the silver markets knows that had Mexico held onto all the physical silver that was mined and shipped out of the country over the past 100 years they would have been the richest nation on the face of the earth. But they didn't have the foresight to see the future. In the last century over 30% of all the silver produced in history has come out of Mexico. Even today, with all the information about silver price suppression, Mexico continues to be the largest supplier of ultra-cheap silver to the world - basically giving away their riches and helping the manipulators keep the price down.

THIS HAS GONE ON FOR OVER 100 YEARS WHILE THE MEXICAN PEOPLE SUFFER IN POVERTY, VIOLENCE AND CORRUPTION!

Let me leave those of you living and breathing in Mexico with one thought --

You can't undo the past and take back all the precious silver that has left your country but you CAN prepare for the future and beat the Banksters at their game. There will be CHOICES after the current system fails and with SILVER being your most precious resource you will obviously hold onto it much tighter for the next hundred years but silver won't be the only choice available.

Many of us will be transacting business in Bitcoin.

I suggest that you get AHEAD of the curve this time and load up on all the BITCOIN you can get your hands on. Tell your government officials to BUY BITCOIN for their people NOW -- before the rest of the world understands that Bitcoin will be one of the options to facilitate the exchange of goods and services after the crash. Yes, Bitcoin IS part of the future of money and if you act NOW it will go a long way in building the kind of stable monetary system your country deserves.

No matter what your leaders say.

May the Road you choose be the Right Road.

Bix Weir
www.RoadtoRoota.com

PS - Hey Hugo...and everyone that is still on the Bitcoin sidelines.

Here's my Coinbase share link where you can sign up and get $10 extra in bitcoin when you buy over $100 (and Roota gets $10 in BTC too.) That's a 10% discount on our first adventure into the FUTURE of MONEY!

Buy $100 in Bitcoin and Get 10% discount here:

https://www.coinbase.com/join/51ba254f89fd211643000035

You will do it sooner or later - why not start today?!