Keiser Report: Bankstatocracy - Max Keiser

Keiser Report: Big Brother Kleptocracy, Bitcoin, Gold & Silver - via @maxkeiser & @stacyhe

@BankingThiefs, The only way you can get inflation (as in the goods you can buy with bitcoin) is through an oversupply or a shrinking user base. Sure it costs money in energy and hardware but the amount of bitcoins is limited by it’s mathematical model which means it will become progressively harder to mine them as more are produced. It’s a bit like a real mine. At first you mine at high grade and then the grade goes down meaning it takes more energy to produce the same amount of bitcoins. This causes the price of the bitcoins to rise which means they buy more goods and services then they did before. (Deflation) The inflation/deflation issue in bitcoin is simply that the volume of trade in bitcoins matches the new supply coming onto the bitcoin supply side. This means no inflation. In reality the bitcoin volume is rising slightly faster meaning gradual deflation. This will...

Full article: http://maxkeiser.com/2012/09/25/keiser-report-bankstatocr...