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‘Paradigm shift’: Surging bitcoin to replace ‘broken’ government currencies

Published time: November 18, 2013 13:07
Edited time: November 19, 2013 04:21
Reuters / Jim Urquhart

Reuters / Jim Urquhart

The bitcoin virtual currency has hit a new record value of US$900. The surge is “the beginning of something spectacular,” with bitcoin potentially soon displacing the dollar, Jeffrey Tucker of the Foundation for Economic Education told RT.

“I think, that’s not a bubble, it represents a substantial paradigm shift,” Tucker said, commenting on the latest boom of the anonymous crypto currency.

“In fact $600 per bitcoin might be a thing of history, we might get it much –much higher,” the expert added.

“The important thing is that bitcoin I believe has a potential of becoming a new international monetary standard, something like gold standard in the 19th century had this real potential. So, I think, it could displace the dollar, and we are talking about maybe five, ten  or fifteen years from now, but the bottom line is that the government currencies are broken at the moment, they don’t meet the modern needs of an internet age and Bitcoin does,”  Jeffrey Tucker explained.

Later on Monday the US Senate Homeland Security & Governmental Affairs Committee held a hearing entitled “Beyond Silk Road: Potential Risks, Threats and Promises of Virtual Currencies” to take a close look at the existing virtual currencies, including bitcoin.

But since bitcoin is out of state control, “it doesn’t really matter what the government say or don’t say about bitcoin.” “It’s purely a product of global international market of traders and users,” Tucker said.

On top of that, the government would rather protect bitcoins than attack the currency, as “bitcoin is a great option for government bureaucratic theft or bribes.”

While bitcoin has recently been involved in the attack by the US Federal Bureau of Investigation when it shut down the Silk Road online market place that largely used the virtual currency, it hasn’t suffered at all, Tucker says.

“You know, the Silk Road, which is an on-line narcotics market, was taken down by the Federal Government and that didn’t harm bitcoin at all actually, bitcoin was up in value after it happened,” the expert said.