Is Bitcoin a Fraud?

By Barry Ferguson. 

 

Is bitcoin a fraud? Jamie Dimon, CEO of JP Morgan Bank thinks so. That’s what he called bitcoin at a bankster meeting yesterday. Funny, if anyone should know fraud when they see it, it is Mr. Dimon.

Mr. Dimon’s bank deals in possibly the biggest fraud paper ever known – Federal Reserve Notes. Let’s compare federal reserve notes with bitcoin.

Federal reserve notes are printed at the whim of the Federal Reserve Bank. Of course, the Federal Reserve Bank is neither ‘federal’ nor a ‘reserve’ nor a ‘bank’. They are a banker cartel that robs money in the form of debt, interest and inflation from uninformed citizens, drains economic power from sovereign states, and disburses loans and cash (bailouts) to their bankster partners. The federal reserve notes they print are used as currency. This is the paper printed at the whim of the Federal Reserve Bank with infinite powers of unlimited printing. There is nothing behind the paper. Nothing. And, due to the Fed’s ceaseless printing, the currency continues to lose purchasing power due to the accompanying inflation. Mr. Dimon likes this form of currency.

Bitcoin is a concept and does not actually exist. Well, only in cyber-space. Bitcoin is known as a ‘cryptocurrency’ because it can be used a medium of exchange. That is, at least for now. I’m sure that most banksters would like to see any competition for their central bankster money outlawed. Yes, that includes gold and silver if defined as money.

Bitcoin can be purchased, or exchanged, for any other currency including US dollars. Bitcoin has several advantages over central bank currency.

One, bitcoin is not issued by central banks and its value is not directly controlled by those banks. Traded via the Internet, Bitcoin prices move with buyers and sellers.

Two, bitcoin is meant to be, and is theoretically, finite in supply. Therefore, its intrinsic value cannot be deflated due to constant supply increases.

Thus, we have common sense reasons to buy bitcoin. Even if we don’t view it as currency, it can be like anything that is finite in supply – a collector’s asset. Therefore, bitcoin will have a value and that value will be set by a market of buyers and sellers. What an incredible concept this is!!

So, can we answer our question, ‘Is bitcoin a fraud’? Mr. Dimon thinks so. He also went on to say that he would fire any of his traders if he caught them dabbling in bitcoin for being stupid. Keep in mind that JP Morgan was bankrupt ten years ago and only exists today due to the biggest fraud ever perpetrated – the Federal Reserve Bank coup de etat of the US and the subsequent bank bailouts of 2008.

In my opinion, nothing could be more fraudulent than federal reserve notes. Not even bitcoin. I don’t think Mr. Dimon should even go there.

But for fairness, let’s go to the charts. Charts tell us what people actually do with their money. Below is a one-year chart of JP Morgan Bank in red and a bitcoin ETF (GBTC) in black. The GBTC seems to track the value of bitcoin pretty well.

1-year JPM in red, GBTC in black

Chart courtesy Stockcharts.com

Yes, the red line shows us that JP Morgan stock price has appreciated some 40% in the last year. Great, Mr. Dimon! But had your traders been, well…, stupid and put money in the GBTC (bitcoin), their trade would so far have appreciated some 520%. Now, I’m not a smart bankster like Mr. Dimon but the black line is still beating the red line by a lot! Maybe Mr. Dimon is just a bit jealous?

The steep drop in GBTC leaving it only up 520% in the last year is likely due to one, the Chinese attempting to limit bitcoin trading in China and two, Mr. Dimon himself calling bitcoin a ‘fraud’.

Where will bitcoin go from here? It’s really anybody’s guess as banksters bad-mouth bitcoin and central banksters conspire to constipate bitcoin trading exchanges. But, like anything finite in supply, it will likely retain some kind of value.

On the other hand, the paper that Mr. Dimon likes and peddles will undoubtedly continue to lose value over time as long as there is a central bank creating supply out of thin air.

The bottom line is this. Whether or not bitcoin is fraud matters not. Our global economy is based on fraud. Fraud is all we have. So go with it!

 

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 

 

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