Stossel: Is Bitcoin Better Money?

Stossel: Is Bitcoin Better Money?

Regulators hate Facebook’s proposed “Libra” currency. They may kill it. But they can’t kill Bitcoin so easily.

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Facebook proposed a new digital currency called “Libra.” It would be backed by several different existing currencies.

The Libra might be better than the dollar, tech reporter Naomi Brockwell and investor Peter Schiff tell John Stossel. It’s easy to send online. If a government currency has a lot of inflation, Libra holders will be largely protected from that.

But politicians oppose Libra. “Why, with all of your problems, should we trust you?” one congressman asked Mark Zuckerberg in a hearing.

“They’re threatened by it,” Brockwell tells Stossel.

Politicians may succeed in killing Libra. Paypal, Mastercard, and other companies were going to work with Facebook on the project, but they’ve bailed because they’re scared of regulation.

That’s why it’s good that Bitcoin exists, says Brockwell. Bitcoin, unlike Libra, can’t be stopped so easily.

“It is the first currency we’ve ever seen that is decentralized,” Brockwell tells Stossel.

“They can’t shut it down,” Stossel responds.

“Exactly. That’s why it’s still around, because they haven’t been able to have these hearings. They haven’t been able to call on the CEO of Bitcoin and say, ‘You’d better cease and desist.’…There is no server to unplug. There is no company to shut down, no CEO to throw in jail, so it persists. That’s really exciting.”

Bitcoin is mostly safe from government because it “lives” on thousands of individuals’ computers, so no government can stop it by pressuring any one company.

But investor Peter Schiff says Bitcoin is a “bubble.” He recommends investing in gold.

“Gold has worked for thousands of years. Bitcoin’s only been around for ten,” Schiff argues. “Gold has actual value. There’s a huge industry that needs gold. Jewelry…you have it in consumer electronics and aerospace and medicine.”

Stossel says: “I don’t presume to know which way prices will move. But I do know that it’s good to have alternatives to dollars.”

The views expressed in this video are solely those of John Stossel; his independent production company, Stossel Productions; and the people he interviews. The claims and opinions set forth in the video and accompanying text are not necessarily those of Reason.

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Comments

Danny Brooks says:

Peter is dead wrong!

Banshee88TK says:

Peter Schiff is a broken clock.

freesk8 says:

Gold, silver, Bitcoin and Federal Reserve Notes. It pays to be diversified.

Zion says:

Oh do the elite class not enjoy Wikileak's existence? Wouldn't have thought.

Santos Vázquez says:

I wanted to invest my birthday money when I was 7, but my parents didn’t understand it and that’s how I missed out on millions.

Steinhauer says:

All for the better concerning Libra. The last thing we need is a wretched company like Facebook facilitating our transactions. If you think govt-manipulated currency is bad, whoo boy. And before you say "So don't use it," it's not that simple. Facebook is a massively popular company, increasingly so over time. The masses find it more and more convenient to let them facilitate more and more aspects of their lives at the low, low cost of privacy and being manipulated. If the governments didn't get so jealous, it would surely catch on, and would become increasingly difficult to avoid using. Likely, Facebook would agree to get into bed with the most powerful governments regarding currency manipulation and transaction data the same way they already have with everything else. So good riddance, Libra. Hold onto whatever you find relatively stable, transact in crypto as needed. Chances are crypto will calm down in due time anyway, with the exception of oppression creating spikes in demand.

Steve D says:

"If a government currency has a lot of inflation, Libra holders will be largely protected from that." Inflation is caused by shortages of goods/services, never by money printing. Backed by a basket of currencies would NEVER prevent potential shortages or geopolitical strife. Computer hidden only reason Bitcoin is still around? Wow, that's a game keeper. Full faith and credit with Bitcoin or other cc's? No, not in the least. Cc's are total bullshit. First time EVER I've agreed with Schiff. Yikes! Don't trust govt? Fuck off Stossel, you use govt every fucking day.

Brendo says:

Lucky shitcoin is deflationary and encourages hording becuse the blockchain is slower than Halflife 3's development and can't handle more the a couple of chinese scammers at a time.

Bill Rhoasts says:

Digital currency may look like a good idea, but beware. Once all currency has been "digitized", then anybody's assets can simply be erased if they refuse to tow line. Think about it, people. The only kind of money that is worth anything is the kind you can hold in your hands and trade for other goods and services. Digital currency is just one more step towards living in a dystopian society.

Bro. Vin says:

Go ahead and dwarf libra, an app from China will rise to the occasion, stupid Americans, fck heads

Wildboy789789 says:

literally everytime a person says dark web, they have no idea what they are saying lol… the government deals in the real world, ordering a rocket launcher or stealing bitcoin cant be traced by government, but as soon as the rocket shows in the mail or bitcoin is turned into cash thru a regulated company like coinbase, the government can see you… its all hidden, untill it physically benefits you

Daniel Reiner says:

Gold in the past has been confiscated or made illegal to own by the USA, UK, Italy, and Australia. Bitcoin could never be confiscated. Some countries have tried to ban Bitcoin without success. Bitcoin is like a huge asteroid entering the earth's atmosphere, while central banks are like dinosaurs watching it light up the skies before mass extension.

Big G says:

All my research suggests the Federal Reserve is a private company that controls the US government not the other way around. Since the introduction of the Petro-dollar after the Second World War every country that's tried to move away from American paper dollars back to the Gold standard (for oil etc) have been 'pacified'.
The Fed aren't going to allow any company to compete against the perceived value of the USD.

Zlipster Royals says:

it is gona work its MARK CMON! HE WILL MAKE IT WORK.

Philip Kennedy says:

Peter is wrong.

csmemarketing says:

For me Bitcoin is still worthless. I live in a 3rd-world country. We can't buy or sell Bitcoin where I am. No online exchanges list my country even if I want to buy and sell. No company here uses bitcoin. Our currency need $7 to buy $1 USD.
So, I would have loved to get into bitcoin, but I just can't.

David says:

Schiff's company sells gold. I'm sure he thinks bitcoin is bad for his business.

AK says:

I am all for, digital currency and I think that will be the future despite what the government tries to do, however after investigating how Bitcoin came about and how the blockchain system works, I don't think it can withstand the test of time. Bitcoin is not designed to work well the larger it gets, with transactions already slowing down more and more, it will only get slower until one day it crumbles. But I do think in the future there will be a digital currency that comes about that is not based on blockchain that will have much greater success.

st Chambers says:

Lead and copper. Two good medals.

Lex Steers says:

Technical analysis on why Libra is structurally unsound just as a crypto http://www.stephendiehl.com/posts/libra.html

Bitcoin = good tech, still looking for a equilibrium point
Libra = Marketing bunk with incredibly risky tech that has no real purpose other than to make facebook a central point of failure

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