You can never be sure that there's no flaw in a system - if you are: it's already flawed. And there's no such thing as a "perfect monetary" system. If you don't want wealthy people to buy your currency you basically need to find them and kill them, but that costs too much…

What a complete load of nonsense from someone who only believes in zero sum games.

The economy doesn't work like that in reality.

The core problem I see here is that it assumes that suddenly everyone is using bitcoins exclusively, and that gives 'the cartels' a control over how people spend their money.

However, the future isn't going to be like that.  Its all about a little bit of whatever is best for those circumstances.  This means that we will never be in a position where only one form of wealth transfer is available.

Bitcoin has got a number of faults in it, but all that means is that another crypto coin will be created and the early adopters start again.  Its not difficult - 3 years ago, hardly anyone had heard of bitcoin.  These days, only most people have hardly heard of bitcoin!

However, trying to guess the political control structure of something that currently doesn't have financial statues is just nonsense.  Its like trying to predict in 1993 that Linux was going to be the main software OS of mobile phones 20 years later when everyone was predicting it would take over on the desktop - which it never did!

Anyway, that's my 0.0005 BTC!

OP, you seem upset that the bitcoin people didn't listen to you at the start.

These types of super geniuses who have their bruised ego dragging along behind them, are still relevant, though it is tedious to listen to it, because it's all about "Oh they should have listened to me!"  ...This reminds me of the shuttle accident with the O-rings, obviously they shouldn't have launched that shuttle, because it blew up.  HOWEVER, there is always one grumpy pants engineer, who will say afterwards "See!  I told you!"

OP seems to be trying to say "I am a techno prophet and can see 30 years into the future"  ...But you cannot.

Granted: Your idea is probably superior, just like the guy saying "No, o rings will fail when they get too cold!" yeah, he's right, but if we listen to him every time, there will be ZERO shuttles launched, because his job is to be a cranky ass.  His ego, in a way, has decided that by nitpicking something ad naseum, he can always say "told ya so!"...  And hey, like I said, he was right that fateful cold morning when the Challenger shuttle blew up.  And yes OP, you may be right here as well, bitcoin and litecoin may be chulthu'd over time, by cartels.  But please step outside your superior intellect to maybe see what I am saying.  Even if you are right, good luck getting anyone to agree with you based on your communication skills.

Let's break down some of the terms you are using:

Tax:  ...Okay, many Americans see taxation as theft.  So we have to go back to the essence of what money is, in order to use these weasel words (as Ayn Rand would call them) like "tax" which even now is being applied to bank deposit theft.  They'll use terms like "tax", "haircut", "forced loan", etc.  ...But the progressive income tax is a Marxist plank, and the 16th Amendment may be abolished before 2030, so using this word and drawing your airtight solutions based on concepts like this, tht will be probably destroyed by 2030, is a symptom of the ego-genius as I described above.  The word "tax" will have to be clarified based on utterly new paradigms which you or I are powerless to know for sure, as to what forms those new paradigms will take.  Admit it:  These words are relics, and nobody likes the IRS of the Federal Reserve Bank (debt issuers and thieves) so the impetus of humanity, will be to abolish these concepts, if humans are given the power.

Work:  ...Again, this is a word which has been watered down and destroyed in the sense that it has a dozen definitions.  Is sitting around babysitting some miner-PCs, "work" the same as digging a ditch for the local utility company as a pensioned s worker, wrecking your back with labor?  What is the meaning of the word "labor" once pensions are stolen?  Oh sure, you can reply at length, but I am simply knocking your premises around, because again, as with the term "tax", the words "work" and "labor" are going to be modified according to the new paradigm, which neither you or I can predict, though you may be x factorially smarter than me (and I work in IT but have a lot of contempt for so called 'developers' who are usually quite stupid as to practicality), neither of us can know what the future paradigm will be as to work, labor, and taxation.

So those are just two words, which are diverse in their meaning, and you can't pinion your whole super-genius-ness on them.  Yeah you're smart, but to knock bitcoin on the idea that miners will give their power to a cartel, is to diminsih the power of humans in general.  No, I do not agree with your shoddy estimation of the general mining pool.  Let me clarify along the lines of your argument.  You are saying for example, that Wackenhut, can use 1 million prisoners with each of them watching 100 servers, to produce a massive amount of hashing power, at pennies-per-watt...  TRUE, prisoners are very cheap employees, and yes, the prison industry is the best cartel there is!  Yes, your logic is sound.  HOWEVER, you are assuming that mankind will allow cartels to exist!  I am suggesting (sorry if my tone is a bit rough), that cartels are horrible institutions, and price does not drive all humans, and many many millions of workers/potential-prisoners will spend every ounce of their power and electricity, to DESTROY CARTELISM AND MERCANTILISM AS SUCH.

I understand you fear cartels.  Not every man does.  In essence, you underestimate the sheer political destructive power of bitcoin and all the clones that will come.  For example, during the civil war (which preceded the cartels you mention above, and the 16th taxation amendment), there were many many types of 'scrip' or paper currency.  Some were debt notes (like our federal reserve notes of today), some were exchange notes which could be traded easily for gold/silver if you were near a branch, point is, there were MANY types of 'money' during the horrific war called "US Civil War"  ...Therefore, one can easily plan for total mayhem between 2013 and 2030, and also with that mayhem will come many types of digital hash-based currency, but this will be a time of not just war, and competing currency, but of destruction of CARTELS AS SUCH.

After the US Civil War, the Constitution (which is a debt document, see the legal definition of "Constitutor" in Bouvier's law dictionary as: "One who agrees to pay the debt of another") was modified as to the 13th and 14th amendments, and this totally remakes the character of debt, work, and taxation (with the 16th amendment), so in the future paradigm, which neither of us can predict, I can safely say that if I am right about human nature (that humans will fight to be free), then I am right about the death of cartels, but if you are right about human nature (your tone is very poor as to the less-smart humans) then sure, you could be right.

In the end, prisoners make the cheapest workers, and thats the war that needs to be fought.  Bitcoin and its brother and sisters hash-based currencies are just the first of this type of weapon, but the point is that these weapons will be used to fight the money mercantile investment bank powers, not to give them more power.  War is fought by attrition of the enemy, and bitcoin gives a definite power to deny the enemy (cartels) of their debt power.  Bitcoin is not debt, but its not capital either, but that makes it in a way, more powerful for the common man, than either debt or capital.

Source? (being paranoid is not a reliable source btw.)

There could be no proof of this. But we shouldn't naively believe that Satoshi launched Bitcoin coz he was a good guy.

I identified a threat inherent in the design. If identifying threats is paranoia, then please tell all the anti-malware activity to stop. And lets us be filled up with viruses and trojans.

You are correct, I can not be sure what was Satoshi's intent, and it doesn't matter any way. Let's just fix the threat.

(we don't need to assume Satoshi was a good guy, he got rich, so he got his reward already)

If you want continuous debasement of Bitcoin, how do you distribute new coins? (not to the cartel miner I assume)

1: Okay we will see your articles, and the discussion will continue.  Cool.

2: Probably bitcoin will not be fixed, but you have failed to explain how cartels will trump the human spirit which strives for less assholes in the world, controlling the workers. (see below)

3: Very cute how you frame it "Are you saying tax will disappear?"  In a way, yes, along the lines of the colonists who dressed up as Indians and threw biritsh tea into the sea to protest taxation and gun confiscation, as a prelude to full on warfare.  I am saying war will probably kill you and me and 50% of those reading this forum.  What our children build after that, cannot be predicted, not by you and certainly not by Martin Armstrong.


I am very familiar with Martin's work, I have printed all of it and studied it at length.  Is he still in jail?  Like I said, prisoners make the best employees, yet you think humans will still remain imprisoned in the future?  I am not so sure.  But Martin's ability to predict the future is not yet proven, his idea that gold may go to 30,000 USD per ounce is interesting, and his knowledge of Japanese money manipulation is deep, but he is not too different from Leo Wanta and his cronies, who crashed the Russian ruble, from a practical perspective.  Neither of these men, are now bitcoin billionaires and so I am saying if you are describing a curve which will meet some point in 2030, you are giving your vector-analysis too much credit.  But don't get all hurt about it, I look forward to your articles, and respect your desire to defeat evil, though you seem to see taxation as like food?  Something humans will never live without?  That's silly.

Martin Armstrong is a knowledgable guy, a Princeton U. genius, and the enemy of Goldman Sachs.  But his idea about cycles can be compared to any other prophet.  An example would be "The Bible Code" type modality where people take words from a page of the bible, and read "Hitler will take over Germany" from it.  They do their bible code ticks, in hindsight 20/20, and that's fine, but indeed many messages can be gathered from any book even Moby Dick has pages that spell out "Hitler will take over Germany" if you look close enough.  But analyzing the past is slipshod brainwork when applied to the future.  The very existence of bitcoin shows that to be true.  The street level geeks, mined the early coins and got rich or spent them, but all the experts like Martin, were nowhere to be found.  Similar to that idiot Bill Gates who said that the Internet wouldn't amount to much.  So I guess I am just knocking you around, and seeing if you bruise easily.  Genius often do.  I look forward to your articles and worldwide fame.  

itsunderstood, the human spirit will prevail. How else would you characterize my attempt to make a fix or better bitcoin?

Let's keep progressing, that is the way to win.

Martin is out of jail (7 years held in jail without a trial) and he writes much more sensibly now. I couldn't understand him when he was writing from jail. Now that he gets daily email questions, he is able to explain his stuff better.

Now I realize he is not nonsense. Before I thought he was.

OP I am pasting this portion from the link you provided above:


So to discuss your concept, most people would see debasing of coins, gold and silver specie type coins, as being a lessening of the metals content, meaning a 99% pure gold coin would be debased such that it becomes a 50% gold coin, i.e. debased by half.

As I understand the words above (correct me if I am wrong), you identify that bitcoin does not ever debase its coins, but indeed, aims to have the final block, even if it is worth a billion US dollars, be the same as to its nature, as the first bitcoin block.  Am I explaining this right?  So in essence, bitcoins can never be clipped or debased, and you're saying that's a problem because the people who mine those final blocks, won't get "paid"?  Is that right?

And so your explanation of debasement as good, is somewhat obverse as to what people associate that word with (myself included) because, I suppose, the debasing is done by assholes who want to enrich themselves.  But you are saying, I think, that debasing the coins as they move forward (the final blocks produce more coins than the first blocks) is a GOOD thing, because it makes for a consistent flow of coins?  Is that right?

Just trying to allow you to clarify your points.  But again, since we won't approach the final bitcoin blocks before total global warfare (means: death of half of all humans on Earth), I stick to my claims that long term predictions are essentially just so much guessing.  Bitcoin here in Q1 of 2013 has crossed the rubicon, and within a few more years, I believe it will cause massive changes politically before your cartels can grab miners as your theory describes.  Chaos will be increasing from here out.  Hmm but perhaps that chaos will cause the miners (be they prisoners or just weakling in their basement) to adhere to the cartels.  Hmm...