Bitcoin and the cryptos have had a wild ride in recent weeks, between the Chinese government outlawing ICOs (the crowdfunding of new altcoins) and subsequently banning Bitcoin exchanges on the Chinese Mainland.
Last Tuesday, Chinese news agencies reported that executives of crypto exchanges have been ordered to not leave the country, pending the government’s investigation of the exchanges there. On Wednesday, rumors began circulating in the Chinese press that the Communist Party of China is planning to ban Bitcoin nodes, isolating that country’s Bitcoin network from the rest of the world. If this happens, it will have the effect of raising the fees associated with Bitcoin, as miners scramble to set up operations in other parts of the world.
80% of all Bitcoin mining today takes place in China, with some miners taking advantage of the state-subsidized, ultra-cheap electricity available in certain regions. Electricity is the biggest expense in the manufacture of Bitcoin. Contrary to the uninformed perception of many, Bitcoin is expensive to produce. Joby Weeks, of BitClub Network, which currently finds 3.2% of new Bitcoin blocks says that today, each Bitcoin costs $800 to mine from his facility in Iceland.
In this interview with Luke Rudkowski, Jeff Berwick calls Bitcoin “The honey badger of money,” referring to this viral video with over 84 million views. “[Big banks and governments] can’t do anything to control Bitcoin. They can’t stop it, they can’t censor it, no government can do that. Bitcoin doesn’t exist anywhere. It’s the honey badger of money. China can say it’s illegal but ‘Bitcoin don’t care’. It’s just going to keep going.”
Jeff explains why governments and central bankers don’t want Bitcoin to become the global currency, contrary to the unfounded claims of some. He says, “They absolutely do not. The big benefit they get from central banking is they control the currency, they can give it to any of their friends…they can also inflate it as much as they want and that’s how most governments today exist, unfortunately – and have all these wars – because they can inflate the currency. It’s an extra tax on the people.
“But you can’t do that with Bitcoin. They can’t control it and…they can’t inflate it. So, there’s a zero percent chance that the globalists want Bitcoin to succeed.”
Jeff says, “This is the endgame, whether they realize it or not. We’re going to take down governments and central banks with cryptocurrencies and there’s nothing they can do about it. It’s beautiful.”
Jeff gets into the multiple uses of the blockchain and what he expects the New Economy will look like, which will re-establish what the Internet is. He likens the developments in cryptocurrencies today to the early days of the Internet, in 1994 and 1995 and how we should all be paying attention.
By the way, honey badgers are completely amazing animals, exhibiting a playful intelligence, putting the primates on notice and constituting a vast genre on the Internet. You can see more about a particularly awesome individual named Stossel, here