Tuesday, October 27, 2015


Today, In EU Rules Bitcoin is a Currency, US Says Bitcoin is a Commodity; Which Side is Correct? What About Gold and BitGold?, wildly popular "financial" blogger, Mike Shedlock, a guy who once confessed that he has no background in economics outside of reading books from the likes of huckster, cult-like Mises.org, idiotically claimed "bitcoin is both money and a commodity"Shedlock then pushed his mini-cult members to read a flawed work by Murray Rothbard, a long dead college professor associated with Mises.org.

Bitcoin is not money. Anyone who claims that Bitcoin is money simply doesn't know anything about money and is merely spreading stupidity. 

Money is coined metal by weight and fineness. Money were it to exist could exist without bankers and without lawgivers. 

Cash, which is evidence of bank credit in circulation, requires banking. Legal tender cash, which is what all of us have, requires bankers' cash, lawgivers and their enforcers.

Never in the history of banking has any smart banker ever considered cash as money. No jurist every thought of cash as money.

The U.S. Congress requires the Federal Reserve to collateralize every dollar in circulation precisely because cash isn't money and never has been money.

Money hasn't existed legally in the USA since 1933. As a matter of practicality, the bulk of the economy of Americans has not relied on money since the Civil War.

Bitcoins are like Beanie Babies or DVDs. They're collectibles and nothing more.
Without doubt Bitcoins are not currency. You must prove title before you can trade Bitcoins. That is what the blockchain is all about.

Anything that requires title proof isn't currency by jurisprudence. Currency means the property (right of ownership) goes with the possession.

A liquor store robber can spend his ill-gotten cash in a supermarket for milk in a purchase and sale of cash for milk, milk for cash. By law, the supermarket can keep the cash because the sale was an honest exchange, even if the cash was ill-gotten.

Postage stamps circulate goods. So too do supermarket coupons. No one would be foolish enough to say that either postage stamps or store coupons are currency.

Bitcoins are useless without cash of various banking systems. Drug dealers accept bitcoins for their heroin because they know they can sell their bitcoins to future druggies for cash, through the surrogacy of Bitcoin exchanges.

Bitcoin exchanges are little more than financial launders, so-called "money" launderers for drug dealers, prostitutes and murderers-for-hire.

Murray Rothbard was a hack, so stupid about all things money, credit and banking, that he believed, wrongly, there is a double claim of ownership on deposits. For the entire history of banking and law, a banker owns what gets deposited, buying such in a purchase and sale. The depositor sells cash, other bank credit or debts. In the days of money, depositors sold money.

Read the definitive works on Bitcoin right here:

And to read more about Mike Shedlock and his rather questionable background, check out:

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