Keiser Report: Bitcoin Millionaires vs Paper Billionaires (E416). VIDEO

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss both the Dow and bitcoin hitting an all time high as the Fed continues to print $85 billion per month for Wall Street handouts whilst the sequester cuts $85 billion from services to the poor, the elderly and soldiers.

They also talk about house prices tripling to all time highs in Hong Kong (thanks to quantitative easing) whilst 'surreal' ghost cities are built in mainland China but which nobody can afford and about how incomes in America are collapsing - thanks to quantitative easing.

In the second half of the show, Max Keiser talks to Charles Hugh Smith of OfTwoMinds.com about both socialism and capitalism leading to debtism.



　

Bitcoin (sign: BTC) is a decentralized digital currency based on an open-source, peer-to-peer internet protocol. It was introduced by a pseudonymous developer named Satoshi Nakamoto in 2009.

Internationally, bitcoins can be exchanged by personal computer directly through a wallet file or a website without an intermediate financial institution.
In trade, one bitcoin is subdivided into 100-million smaller units called satoshis, defined by eight decimal places.

Bitcoin does not operate like typical currencies: It has no central bank and it solely relies on an internet-based peer-to-peer network. The money supply is automated, limited, divided and scheduled (bitcoins are generated every 10 minutes) and given to servers or "bitcoin miners" that verify bitcoin transactions and add them to an archived transaction log. The log is authenticated by ECDSA digital signatures and verified by the intense process of bruteforcing SHA256 hash functions of varying difficulty. Transaction fees may apply to new transactions depending on the strain put on the network's resources. Each 10-minute portion or "block" of the transaction log has an assigned money supply depending how long the network has been running. Currently, 25 bitcoins are generated every 10 minutes. This will be halved to 12.5 BTC within the year 2017 and halved continuously every 4 years after until a hard-limit of 21 million bitcoins is reached within the year 2140.

Bitcoin is the most widely used alternative currency:[11][3] As of March 2013, the monetary base of bitcoin is valued at over 400 million US dollars.[12][13] The fluctuation in the dollar value of a bitcoin has evoked criticism of bitcoin's economic suitability as a currency.[14] Some have claimed that the currency is a Ponzi scheme since early users and investors can profit from the declining supply of bitcoins.
http://en.wikipedia.org/wiki/Bitcoin