Ron Paul: Bitcoin Could Go Down in History as Destroyer of the U.S. Dollar

FRANCIS All right Bitcoin ░░░░░░░░ taking the market by ░░░░░░░░ and causing controversy and ░░░░░░░░ the world over Could ░░░░░░░░ be the death of ░░░░░░░░ dollar Former U S ░░░░░░░░ and presidential candidate Ron ░░░░░░░░ is here with his ░░░░░░░░ in a First On ░░░░░░░░ Business interview It is ░░░░░░░░ to have you back ░░░░░░░░ the show Congressman What ░░░░░░░░ you think of Bitcoin ░░░░░░░░ Well I think it ░░░░░░░░ a mystery to a ░░░░░░░░ of people and there ░░░░░░░░ a lot of mystery ░░░░░░░░ with it to me ░░░░░░░░ well because I can ░░░░░░░░ quite describe to you ░░░░░░░░ what a Bitcoin looks ░░░░░░░░ or what it s ░░░░░░░░ about but it s ░░░░░░░░ interesting phenomenon and it ░░░░░░░░ very attractive to libertarians ░░░░░░░░ it sort of fits ░░░░░░░░ category of competing currencies ░░░░░░░░ you know if we ░░░░░░░░ a replacement for the ░░░░░░░░ it will be because ░░░░░░░░ at the Federal Reserve ░░░░░░░░ the value of the ░░░░░░░░ and therefore something has ░░░░░░░░ take its place And ░░░░░░░░ know if you look ░░░░░░░░ the last 100 years ░░░░░░░░ Fed has been working ░░░░░░░░ it 90 eight percent ░░░░░░░░ the value of the ░░░░░░░░ is gone FRANCIS Especially ░░░░░░░░ they have been working ░░░░░░░░ on it You were ░░░░░░░░ as saying that you ░░░░░░░░ the Bitcoin could be ░░░░░░░░ destroyer of dollar Did ░░░░░░░░ say that and what ░░░░░░░░ you mean by that ░░░░░░░░ I think there was ░░░░░░░░ little bit lost in ░░░░░░░░ translation there because there ░░░░░░░░ a lot of ifs ░░░░░░░░ buts and maybes in ░░░░░░░░ But if the dollar ░░░░░░░░ down if the Fed ░░░░░░░░ causes a panic of ░░░░░░░░ dollar which we had ░░░░░░░░ 1979 but it required ░░░░░░░░ rates up to 21 ░░░░░░░░ to save the dollar ░░░░░░░░ if you have a ░░░░░░░░ out of the dollar ░░░░░░░░ I anticipate will happen ░░░░░░░░ what degree and how ░░░░░░░░ will happen we don ░░░░░░░░ know FRANCIS Yeah Paul ░░░░░░░░ if Bitcoin is out ░░░░░░░░ and gold is out ░░░░░░░░ it can be a ░░░░░░░░ in bringing down the ░░░░░░░░ You know there will ░░░░░░░░ a momentum in a ░░░░░░░░ direction So but we ░░░░░░░░ t even know about ░░░░░░░░ That doesn t have ░░░░░░░░ very long history I ░░░░░░░░ the history of gold ░░░░░░░░ course because it s ░░░░░░░░ little bit longer FRANCIS ░░░░░░░░ Paul But if the ░░░░░░░░ fits the bill and ░░░░░░░░ is no fraud involved ░░░░░░░░ think yes it can ░░░░░░░░ a participant and there ░░░░░░░░ be other currencies similar ░░░░░░░░ this I think as ░░░░░░░░ goes on The thing ░░░░░░░░ surprised me the most ░░░░░░░░ the sort of the ░░░░░░░░ by Bernanke not saying ░░░░░░░░ know that this was ░░░░░░░░ terrible thing He said ░░░░░░░░ this sounds pretty good ░░░░░░░░ have to consider this ░░░░░░░░ a possibility He was ░░░░░░░░ more adamant when I ░░░░░░░░ him about gold He ░░░░░░░░ absolutely not Gold is ░░░░░░░░ money but maybe Bitcoin ░░░░░░░░ And I just wonder ░░░░░░░░ it s less threatening ░░░░░░░░ the Central Bank and ░░░░░░░░ makes me think about ░░░░░░░░ s going on at ░░░░░░░░ point FRANCIS Do you ░░░░░░░░ it s really less ░░░░░░░░ Bitcoin though Because what ░░░░░░░░ really interesting about it ░░░░░░░░ that the government has ░░░░░░░░ more or less over ░░░░░░░░ dollar I mean like ░░░░░░░░ re saying they could ░░░░░░░░ control through their own ░░░░░░░░ but for now you ░░░░░░░░ they re trying to ░░░░░░░░ the value They seem ░░░░░░░░ have no control over ░░░░░░░░ so far And I ░░░░░░░░ t imagine they re ░░░░░░░░ to let it remain ░░░░░░░░ way Paul Yeah And ░░░░░░░░ is why you know ░░░░░░░░ are notorious in demanding ░░░░░░░░ monopoly over money and ░░░░░░░░ So it raises a ░░░░░░░░ of questions on what ░░░░░░░░ going on here We ░░░░░░░░ know that these block ░░░░░░░░ that are recorded tells ░░░░░░░░ this money goes and ░░░░░░░░ much money it is ░░░░░░░░ the Fed s didn ░░░░░░░░ have any trouble tracking ░░░░░░░░ the drug dealers that ░░░░░░░░ dealing in Bitcoin So ░░░░░░░░ think there s a ░░░░░░░░ to be learned about ░░░░░░░░ But in my own ░░░░░░░░ I just have trouble ░░░░░░░░ that this will be ░░░░░░░░ money of the future ░░░░░░░░ may be an interim ░░░░░░░░ It may work better ░░░░░░░░ I think and who ░░░░░░░░ what will happen But ░░░░░░░░ some reason the history ░░░░░░░░ money shows that people ░░░░░░░░ to see something and ░░░░░░░░ something and understand something ░░░░░░░░ s pretty hard FRANCIS ░░░░░░░░ do but if you ░░░░░░░░ about the origin of ░░░░░░░░ money you know I ░░░░░░░░ in the beginning it ░░░░░░░░ ridiculous Rather than trading ░░░░░░░░ that was of actual ░░░░░░░░ you ve got something ░░░░░░░░ s just a symbol ░░░░░░░░ s not that big ░░░░░░░░ a leap I mean ░░░░░░░░ like you say it ░░░░░░░░ digitally in your digital ░░░░░░░░ account Paul Yeah but ░░░░░░░░ you skipped one step ░░░░░░░░ they didn t go ░░░░░░░░ barter to fiat money ░░░░░░░░ No gold Paul This ░░░░░░░░ one thing about Austrian ░░░░░░░░ it always says that ░░░░░░░░ has to originate in ░░░░░░░░ marketplace as a commodity ░░░░░░░░ work its way through ░░░░░░░░ the commodity money became ░░░░░░░░ money But you don ░░░░░░░░ have any currency that ░░░░░░░░ comes up and is ░░░░░░░░ fiat currency It has ░░░░░░░░ have something behind it ░░░░░░░░ the question is will ░░░░░░░░ limitation on the number ░░░░░░░░ Bitcoins out there give ░░░░░░░░ type of stability to ░░░░░░░░ currency And I don ░░░░░░░░ think the evidence is ░░░░░░░░ yet which way it ░░░░░░░░ going to go But ░░░░░░░░ m a strong believer ░░░░░░░░ competing currencies I ve ░░░░░░░░ about it I ve ░░░░░░░░ you know proposed laws ░░░░░░░░ allow competing currency And ░░░░░░░░ now this might fit ░░░░░░░░ bill but I m ░░░░░░░░ predicting that Bitcoin will ░░░░░░░░ out on top but ░░░░░░░░ may be a major ░░░░░░░░ and it s getting ░░░░░░░░ lot of attention and ░░░░░░░░ sort of enjoy the ░░░░░░░░ FRANCIS You used a ░░░░░░░░ that is Bitcoin s ░░░░░░░░ problem which is stability ░░░░░░░░ mean is there something ░░░░░░░░ they could do is ░░░░░░░░ the key to making ░░░░░░░░ more reliable more acceptable ░░░░░░░░ more people Because while ░░░░░░░░ think it s interesting ░░░░░░░░ believe in the concept ░░░░░░░░ would not personally want ░░░░░░░░ put any money that ░░░░░░░░ wasn t you know ░░░░░░░░ comfortable with losing into ░░░░░░░░ Could they make it ░░░░░░░░ stable or would that ░░░░░░░░ the underlying premise Paul ░░░░░░░░ think they face a ░░░░░░░░ problem because you know ░░░░░░░░ are a little bit ░░░░░░░░ than this but it ░░░░░░░░ t so stable the ░░░░░░░░ day you know when ░░░░░░░░ Chinese announced that they ░░░░░░░░ t going to allow ░░░░░░░░ Chinese to use Bitcoins ░░░░░░░░ what did it do ░░░░░░░░ down 200 or 300 ░░░░░░░░ was a big percentage ░░░░░░░░ stability is very difficult ░░░░░░░░ fiat money it s ░░░░░░░░ going to be stable ░░░░░░░░ s always going to ░░░░░░░░ A Bitcoin is quite ░░░░░░░░ bit different It s ░░░░░░░░ that s come about ░░░░░░░░ the modern age It ░░░░░░░░ wait and see but ░░░░░░░░ m like you I ░░░░░░░░ not buying any Bitcoins ░░░░░░░░ putting them in my ░░░░░░░░ FRANCIS Congressman before we ░░░░░░░░ out of time I ░░░░░░░░ to ask you real ░░░░░░░░ how do you think ░░░░░░░░ this is all going ░░░░░░░░ end with the Fed ░░░░░░░░ have brought in unusual ░░░░░░░░ that we ve never ░░░░░░░░ before A lot of ░░░░░░░░ think inflation is around ░░░░░░░░ corner and when it ░░░░░░░░ it will be runaway ░░░░░░░░ you think that How ░░░░░░░░ you think this all ░░░░░░░░ out everything that s ░░░░░░░░ with quantitative easing Paul ░░░░░░░░ from an Austrian Economic ░░░░░░░░ viewpoint you already have ░░░░░░░░ inflation Inflation means when ░░░░░░░░ supply of money is ░░░░░░░░ increased and it s ░░░░░░░░ there Now the velocity ░░░░░░░░ subjectively determined it hasn ░░░░░░░░ started to circulate FRANCIS ░░░░░░░░ Paul They have no ░░░░░░░░ over that So even ░░░░░░░░ they quit let s ░░░░░░░░ the conditions are such ░░░░░░░░ think they could quit ░░░░░░░░ quantitative easing there is ░░░░░░░░ so much out there ░░░░░░░░ can t predict what ░░░░░░░░ happen So the price ░░░░░░░░ which is a secondary ░░░░░░░░ of monetary inflation is ░░░░░░░░ to come No I ░░░░░░░░ there s we re ░░░░░░░░ for big trouble because ░░░░░░░░ if they give a ░░░░░░░░ little cutback on quantitative ░░░░░░░░ it s going to ░░░░░░░░ the markets and if ░░░░░░░░ get somebody like Yellen ░░░░░░░░ office and they re ░░░░░░░░ to do that she ░░░░░░░░ bolder than the rest ░░░░░░░░ them have ever been ░░░░░░░░ she will not hesitate ░░░░░░░░ that s the only ░░░░░░░░ left for stability in ░░░░░░░░ economy and economic growth ░░░░░░░░ you print more money ░░░░░░░░ you print more money ░░░░░░░░ with government spending more ░░░░░░░░ and there is a ░░░░░░░░ to that and that ░░░░░░░░ what I ve been ░░░░░░░░ and I m sure ░░░░░░░░ can not solve our ░░░░░░░░ by doing the same ░░░░░░░░ that created our problem ░░░░░░░░ Congressman we re out ░░░░░░░░ time Will you come ░░░░░░░░ because I want to ░░░░░░░░ to you more about ░░░░░░░░ topic We didn t ░░░░░░░░ enough time on the ░░░░░░░░ Will you come back ░░░░░░░░ do more with me ░░░░░░░░ I will be glad ░░░░░░░░ FRANCIS All right thank ░░░░░░░░ so much.”