Even though a bank, my money in a bank, or it s Schwab, Charles Schwab, it s also digital. Talk a little bit about Brazil if you d like. So, underlying Bitcoin is the Blockchain technology. They like the idea of a monetary system not controlled by a government that doesn t have a Fed that can choose to print money when it wants to. At least there is the idea that you ll be compensated; it s not always done fairly, of course, and the outcomes are not always healthy. It does have the advantage, though, that the U. The same kind of thing that people in the United States use to speak negatively about Bitcoin. At this point, it seems mainly as a way, driven by the Police, to sort of set up this extortion racket. Obviously, not every country has price controls and empty shelves and therefore people are importing food from Miami. And in my piece I talk about one--there s a woman who is sending money home to her family in Venezuela; she was literally having a family member walk cash across the border. Now, you might say, Well, why doesn t the Brazilian--this is happening out in the open.
Jim Epstein: They are interested in this group. For all I know, places that I think of as a war zone, like Beirut--maybe life is normal there, too. So, there s an enormous amount of protectionism, sort of. And nobody can stop you; nobody can control it. There s a little bit--if you cross the Colombian border, you can use cash; and there is to some degree a free market, a free exchange rate. And the legal system is one way--and often the cheapest way--to solve that problem, of getting rid of the ambiguity or the lack of trust that I might have when you represent yourself as a legitimate buyer with credit. – – How Do Bitcoin Transactions Work things similar to bitcoin mining. Jim Epstein: Well, Bitcoin is the first successful digital currency that runs on the Internet things similar to bitcoin mining. It just is--as a microeconomist it just utterly fascinates me that price controls, in Venezuela, on food, means there s not much food, or none in many cases on the shelves. So, the idea there is if instead of checking a signature, you can upload a document, a representation of a document, to the blockchain. But, what s really driving it in Venezuela and causing such a rapid increase in uptake is that electricity in Venezuela is virtually free.
When I left 1 BTC = 1 USD; 1 tank of gas == 35 BTC. Jim Epstein: Um, well, they are not--they are cracking down in part. Bitcoin is beginning to show signs of a solution to this--that it is a solution to this problem.NEM.. Jim Epstein: You know, I m staying in touch with these people; I ve heard some worrying reports recently about a few more crackdowns in miners. And this is true throughout Latin America. Its applications wonât be immediately obvious, especially to ordinary users. Iâve never seen so many people actually using QR codes. Many more people might be interested in bidding on that property; the price would go up significantly. The Treasury Department told Bitcoin exchanges in March that they need to do due diligence to prevent money laundering. But it s not to the--you know, it s still an incredibly profitable venture, if you can learn about it and start doing it. .