The Risk of Private Money in the Virtual World

Andreas Antonopoulos recently told his audience that Bitcoin will never be truly private. On his blog he continues to explain his position and assure us that he is not lying to us. He does not explain why he has the view that Bitcoin will never be truly private but rather a tool that may allow the rich and powerful to access private money. This will eventually bring Bitcoin down as more people with far less wealth try to access their private wealth through Bitcoin.

But what exactly is Andreas referring to? Is this why he is not telling us the truth? Do we really need to be told that Bitcoin will never be truly private? Does he really think it is a bad thing for the wealthy and powerful to own and control the currency? In his defense, he does not mean what he is saying and is telling us an impossible idea.

We must remember that Andreas was hired by the Federal Reserve to help them in helping the entire world move away from the gold standard. As a result, the very reason why Bitcoin was created became irrelevant. Yes, there are many good things about Bitcoin including its privacy which makes it one of the best technologies to create a currency outside of a central government. However, we must also consider that no matter how private Bitcoin might be, there is nothing that can guarantee that private money will exist or will be trustworthy or accountable.

If private money is created and it becomes too popular then it will no longer be private. It will become a commodity that you can purchase and sell for its value. Eventually the Federal Reserve could come up with some new scheme where you are going to have to pay a bit more in order to purchase your private money.

This is true because governments never know when they will run out of the money needed to print their own money. They always have and never want to have to use their own currency.

By having the price for each Bitcoin be set at just a few cents, those with money to invest in private money can place it in a digital wallet and when the value increases so will the profits. Then the people can choose to buy more private money as they see fit and keep the profits for themselves.

This way there will never be a news story that would make the person who owns the private money to reveal itself. So it is not really private, because it is already public information. This is why the technology behind Bitcoin, when it grows beyond a certain point, will be really dangerous.

In fact, the more this happens, the more governments will use it to misdirect the economy in order to force us to use their currency. We will all end up losing out because we have been led down the wrong path in the past.