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The Daily Bell gets schooled by its own commentators on Bitcoin and fiat currencies

September 19, 2012

In their latest attack on Bitcoin and “UN LETS currencies”, the Daily Bell apparently forgot to check some basic definitions and got schooled by their own commentators.

According to the Daily Bell, both Bitcoin and interest-free currencies are elite promotions. In fact, the elves at the Bell suspect both to be nothing less than “backdoor government psyops”.

But their feedbackers would have none of it:

–          ‘ This article deals in a lot of FUD and zero facts. Bitcoin undermines the power of central banks and the Elite. Why would they create a tool like bitcoin that undermines their own power base, the creation of money.’

Good question, which the elves did not attempt to answer.

The article begins by denouncing Bitcoin as “a pure electronic, fiat currency with no metals backing at all”. However, another feedbacker notes:

–          ‘ The author also makes the fallacious argument that bitcoin is “not backed by anything”. I’ve got news for him, neither is gold. Commodities are valued for what they are and what they enable people to do.’

This time, the elves replied: “Now it is true that money does not need utility. It simply needs to be accepted.

Wait, did we read this correctly? So, if money “simply needs to be accepted”, why this constant harping about “pure electronic fiat currency”? The truth is that we do not need the means of exchange to be backed by precious metals. Even the Bell seems to be aware of it, although they never miss an opportunity to promote their “private gold-backed currencies”.

The Bell also attempted once again to justify the charging of interest on money created from nothing, using the worn-out “time-value of money” argument, which has been comprehensively debunked on Real Currencies.

Once again, a commentator called the Bell on it:

–          ‘ Usury is the central bank charging interest on money conjured from nothing, not pricing for the time preference of money. How can you have a time preference on something that doesn’t exist yet? ’

Very tellingly, there was no answer to this question.

Finally, another feedbacker noticed the Daily Bell’s tendency to label any currency that is not backed by metals, even a non-governmental currency such as Bitcoin, as “pure fiat”:

–          ‘ Um, “fiat currency” means that the money has value because a government says it has value – “you must pay taxes in X currency or we will kill you.” ’

Here, the elves attempted to defend themselves by citing an obscure academic article that mentions “private fiat money”, notwithstanding the fact that fiat money is almost universally defined as “money that derives its value from government regulation or law.”

One feedbacker summed it up magnanimously:

‘ The author needs to do more homework before writing an article like this.’

We would tend to agree.

Latest from the Daily Knell’s editors: Following our exposure of the Daily Bell’s business partnership with Shawn Perger, owner of Dicon Gold Inc., we noticed today that Perger’s bio on the Daily Bell had suddenly disappeared. We will let our readers make up their minds about this…

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2 Comments leave one →
  1. September 20, 2012 8:54 am

    Reblogged this on Recovering Austrians.

Trackbacks

  1. The Daily Bell Hoax? « Real Currencies

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