Max Keiser & Alex Jones: Bitcoin as a central bank slayer and a privacy commodity

Selected transcript highlights from the Alex Jones Radio Show broadcast from March 11th, 2013 with guest Max Keiser. Video courtesy of TheAlexJonesChannel.


Alex Jones:  The first guy I ever heard talk about Bitcoin years ago, I forget when, he was the first guy. Probably secretly invented it for all I know. There’s a rumor for ya. He invented other stuff. Max Keiser was the first guy I ever heard talk about Bitcoin, and everywhere I go, it’s definitely the big buzz, “Bitcoin, Bitcoin, Bitcoin!” So, we’re going to get to that. It’s growing exponentially. My concern is, if we don’t know who created it, anonymity for the individual is fine, but if we don’t know who created it, they could be creating an alternative fiat currency to destroy it, and then try to discredit the entire movement that I think is a great idea. I want competing currencies. Max, I know you’re chomping to talk about how you invented Bitcoin, because I’ve got a sneaking suspicion that you might be involved. And, I know some folks in Austria too that might be involved, but I’m just going to leave it at that. I know that there’s a certain crowd that might be involved. OK, I think I’ve said too much. Max, seriously here, I’m just concerned that they could crash it and come after everybody  But, let’s not go there first. What is happening with your big predictions? Some developments I saw you tweet over at @MaxKeiser over to @RealAlexJones, following us over there at Twitter. I’m excited to hear your analysis on this implosion because I hope you’re wrong about it, because I think that they’ll just get more power out of it. Max Keiser of

Max Keiser: Hey Alex, great to be with you. No, I did not invent Bitcoin. I think the reason people say that is because I did invent the virtual currencies and virtual trading back in 1996. I have four U.S. patents covering virtual currencies and virtual trading. So, people say “oh, Max Keiser must be involved in the creation of Bitcoin.” That’s not the case. I am very excited and very happy that a hacker, or a group of hackers, did launch Bitcoin in 2009. It’s now a 500 million dollar, you know, in circulation, and it is taking the globe by storm. This is the Fed killer. When Rand Paul says “we need to kill the Fed,” when Ron Paul says “we need to kill the Fed,” when I say “we need to kill the Fed,” Bitcoin, potentially, is the Fed killer. Now, getting to my prediction. I said on your show 8 months ago that within 9 months we’d have a major financial catastrophe. It could most likely be a bond bubble burst, and there could be a number of triggers. I’m going to claim victory right here, right now, because since I was on your show at that time, Bitcoin has made a move from the $5 to $6 per Bitcoin range to now it’s at $46, heading a lot higher. It’s up 200% this year. There are many Bitcoin millionaires now, myself included, that have become Bitcoin millionaires based on this historic move from $5 or $6, to now $46, up 200% this year.

Alex Jones: In fact, I remember it was ’09 you told me to get into Bitcoin, I probably should have. My problem is the speculative bubble. What about it as a bubble?

Max Keiser: It’s volatile, it’s gonna be volatile, but it doesn’t qualify as a bubble. A bubble would be over-saturation, and people owning across the spectrum, like Nasdaq stock in 2000 were a bubble. The bonds are in a bubble. The stock market in ’87 was a bubble. Bitcoin is not owned, yet, by anywere near the penetration it could get to Alex. Let me explain the potential for Bitcoin. It could, conceivable, capture 1% to 10% of the global Forex transactions. That would mean an implied price for Bitcoin moving from $46 to $100,000, potentially $1,000,000 per Bitcoin. There’s only going to be 21 million ever created, in existence, and that’ll be it. They’ve already had 10 million created. 25 new Bitcoins are created every 10 minutes, and that’s that rate at which these are entering the economy. The Federal Reserve system hates it! They would love to kill it. They’re attacking it any way they can, but they will fail. This is what we’ve been waiting for! This is the “Cyber Christ” moment. This is when the activists that having been pushing against the Fed are gonna win with Bitcoin.

Alex Jones: Did you just say that Bitcoin is the “Cyber Christ?”

Max Keiser: Satoshi Nakamoto is the name of the developer who released Bitcoin in 2009. I call them the “Cyber Christ” because he, potentially, is so much of a game change at this point. It’s such a quantum leap away from the Federal Reserve system that is killing economies around the world, the we are going to have a massive, global, coming-to, an understanding, a revelation, that finally we’re going to escape the nightmare that is the central bank system. This thing is a sky rocket. The price, yes, is going to be very volatile, so keep that in mind. You’re going to see a lot of price action, but the trajectory is up, and has potential to go to $100,000, or $1,000,000 per Bitcoin from the current price of $46. I suggest you get Rick Falkvinge from Stockholm on your show. He’s part of the Pirate Party is Sweden. He’s a great guy. He put his entire net worth into Bitcoin two years ago. There was a lot of volatility, but he’s got a very down to earth analysis of it. He’s a great, great guy. You should have him on your show.

Alex Jones: But, again, I know about who supposedly released it, but then it’s all very foggy who actually designed it. Talking to all the insiders, I mean, what you’re saying is a group of “hackers” or “IT developers,” I mean, as best we know.

Max Keiser: This is the response. These are activists. Look at the politics in America. Look at what Ron Paul’s been saying for years, “we gotta get rid of the Fed.” There hasn’t been any traction or movement whatsoever. Hackers understand that privacy is a big issue going forward. The privacy is something that is at the heart of what Kim Dotcom in New Zealand is talking about with Mega. Mega has got now over 50,000,000 users, it’s becoming a billion dollar company. He calls himself the “privacy company,” everything is encrypted. Just like Bitcoin is entirely encrypted. Privacy is the new scarcest resource in the world today, and that’s what backs Bitcoin. It’s privacy. It guarantees privacy. In this day and age, that’s a very scarce commodity, with every single one of our emails being spied on, with millions of CCTV cameras installed everywhere we go, privacy is one of the rarest commodities in the world. That’s what collateralizes, essentially, Bitcoin, and that’s why it’s such a valuable currency. So, the activists behind it, this creation, are making that statement against the invasivness of the state. I also noticed that the Austrian school of economists, guys like Tom Woods, who you have on your show. At first they were very hesitant about Bitcoin. Now they’re embracing Bitcoin. The libertarians are now embracing Bitcoin. Lew Rockwell, and his crowd, are now embracing Bitcoin, because the realize, now, what it is. It’s a reaction the criminality of the Federal Reserve.

Alex Jones: Sure, I understand. But, Nakamoto is, admittedly, a fake cutout. Are you Nakamoto? Stop dodging!

Max Keiser: Right, it’s a pseudonym for either one, or a group of, hackers. I’m not involved, but I know this (inaudible) very well having been involved in virtual currencies going back to 1996. So, I’m very familiar with the need for this. I’m very familiar, also, that my patents were seized by Wall Street, by a bank on Wall Street. Cantor Fitzgerald, they took those patents out of the public domain.

Alex Jones: This is your way of getting back at them.

Max Keiser: I’m just giving you what’s going on in history. They took those patents out of the public domain. They, in turn, moved the company, Cantor Fitzgerad, to the top floor of the World Trade Center, and then they had to deal with their own karmic reality. That’s their gig. That’s just their fate. In the meantime, other people who looked at the virtual currency space have said “you know, there is something here that can be done.” The Bitcoin protocol, this encrypted that’s now on the web, and it’s becoming a huge industry. There are lots of companies that now support Bitcoin. For exmaple, there’s a company now called BitPay that is becoming the PayPal of Bitcoin. They guarantee transactions in Bitcoin. WordPress, which is one of the biggest templates for running blogs on the internet now accepts Bitcoin. You have stores opening up around the web.

Alex Jones: We’re trying to figure out how to accept it as well.

Max Keiser: Encrypted currency, there’s nowhere in the world you could send $1,000 from Alex Jones to anyone in the world for virtually free. It doesn’t cost you anything. It’s instantaneous and you get 100 cents on the dollar. The banks hate this because it cuts into their profit margin. This is what’s needed to battle against the banking terrorists like JP Morgan, Goldman Sachs, Wells Fargo, Warren Buffet, the Federal Reserve. These guys are going down! Bitcoin is the spear to take them down!

Alex Jones: Amazing. Now, I went to get into the largest geopolitical issues, but I agree. True fiat currencies that are open source are what we need to go to.