4 Bitcoin Conspiracy Theories And Why They're Wrong

It was only a few short years ago that I was being called insane for thinking bitcoin was anything but the new Beanie Babies and tulips. In fact, I still get a few of those comments here and there, but they’re starting to die out as the true potential of cryptocurrencies is becoming clear to all those but the willfully blind, ignorant, and those whose job it is to shill for the central banking system and keep humanity enslaved.

But now that most people see the obvious potential of crypto, a whole new crowd of naysayers and conspiracy theorists have come up with all kinds of off-the-wall theories, from “Bitcoin was created by the CIA---it’s an inside job to make us all lose money!” to “Jeff Berwick is a government shill!”

I don’t know many people who are bigger skeptics or “conspiracy theorists” than me… so I get it. And, compared to how the world was a few decades ago when no one really questioned anything, I’m quite happy to see that a growing number of people seem to be questioning everything now.

Yet, still many of these theories are way off base. Let us debunk.

Conspiracy #1 — Was Cryptocurrency Created By The CIA?

A few years ago it was hard to convince people that two planes couldn’t knock down three skyscrapers in New York City… but now it seems that most people who are even mildly awake have realized the official story of 9/11 is untrue.

These days, though, it seems the scales have tipped a bit too far in the other direction (in my humble opinion). Now, many people assume every single thing is a government or CIA or bankster inside job.

While many scandals are indeed covert operations orchestrated by the Powers That Shouldn’t Be… there is no sufficient evidence, whatsoever, that bitcoin was a government-backed project---quite the contrary.

First, bitcoin had its genesis in the cypherpunk subculture which was a group of mostly anonymous, privacy-focused anarchists who were working on encryption systems to subvert government control for decades… even before the internet was created.

Many of the people in this group knew that the real key to reducing the power of government and central banks was to break their monopoly on money.

A few attempts, pre-bitcoin, such as E-Gold, failed because they were centralized in nature.

Finally, someone under the pseudonym, Satoshi Nakamoto, was able to devise a completely decentralized digital currency.

His writings on various forums are fully public and went on over a period of years. It was very clear that whoever Satoshi was, he was an anarchist. His writings were quite eloquent and always had the principles of libertarianism as a strong thread throughout.

You can read his most important writings in The Book of Satoshi, which I call the “autobiography of bitcoin.” It’s available for purchase on Amazon, but TDV members get the E-book in PDF format for free (subscribe HERE ).

Phil Champagne did an excellent job of taking Satoshi’s most relevant writings and putting them into a chronological format that shows how bitcoin developed and evolved. I wrote the foreword for the book and it is clear to me that Satoshi was not a government plant.

The world-controllers are very savvy when it comes to creating false flags, propaganda, internal wars and controlled opposition.

Still, it goes beyond the level of believability that they would devise a currency with the potential to destroy their entire power structure AND do so under the guise of a crypto-anarchist… and write for years about how to take down the system.

Bitcoin didn’t even land on the radar of governments and central banks until about four years after its creation in 2009, and mostly seemed to come as a surprise to the power structure. Politicians and central bankers, even to this day, appear stunned and confused with how to deal with the threat of cryptocurrency.

This is very similar to the internet. It took years… decades really… for the power structure to realize the internet was a major threat to their mind control system.

It wasn’t until nearly 20 years after the creation of the internet when people like John Kerry finally realized it was a force to be reckoned with. He said in 2013, "This Little Thing Called the Internet ... Makes It Much Harder to Govern.”

A case can be made that the internet was “created” by CERN, the CIA and Department of Offense due to some of the early protocols having been designed there.

But is anyone who says “bitcoin is a CIA inside job” also trying to convince people not to use the internet because of some early government involvement?

It’d be ridiculous to do so.

Yes, the power structure is such a massive octopus of global control, with trillions of dollars in funding from extortion rackets across the world, that they do seem to have their hand in almost everything.

But, there is no evidence that they were involved in the design of bitcoin.

Conspiracy #2 — Is Bitcoin A Trap To Steal All Our Money?

This is a theory that was new to me until the last few weeks when I began to see many people posting about it.

The theory posits that bitcoin was created by the government (see point #1) AND the government has a way to "crack" bitcoin using quantum computers. The plot, apparently, is to get as many people as possible to convert their fiat currency into bitcoin and then, at the right time, use quantum computing to hack everyone’s wallets and steal all their bitcoin.

As mentioned in point #1, the idea that government created bitcoin has no evidence and is highly unlikely. But, to think that they not only planned it but then had this nefarious scheme in mind for years later seems even more implausible.

One important thing that most of these conspiracy theorists seem to be missing is that no fiat currency actually gets turned into bitcoin. When someone buys bitcoin for fiat scrip (dollars) someone else is selling bitcoin and taking the dollars.

On a net basis, no fiat currency disappears. So, even if this was the plan, it is really kind of stupid.

Besides, the biggest holder of bitcoin is Satoshi Nakamoto himself. Those who have culled through some of the earliest bitcoin addresses assume that Satoshi holds nearly 1 million bitcoin.

To date, not one of these addresses have ever transacted. Which means, if Satoshi is the CIA and the whole plot is to sell the bitcoin for dollars and then destroy bitcoin then they still haven’t done it. Not once.

Feds did however, miss out on a big payday after selling bitcoin seized from the Silk Road---too soon. The government sold the crypto for $48 million, but could've netted $600 million.

Most of the other largest holders of bitcoin are crypto-anarchists who were mining in 2009 and 2010. So, even they, did not put much money into bitcoin. They just mined in the very early days with not much computing power (possibly even just on one computer).

Suffice it to say, this theory makes no sense. Nice try though!

Conspiracy #3 — Was Crypto Invented To Install a Trackable And Taxable World Currency?

This theory usually comes along with a lot of religious “mark of the beast” talk.

While it is true that, undoubtedly, if they haven’t already, the governments and central banks will create their own digital currencies to phase out cash as we have covered for years under the War On Cash meme. They would be foolish to launch bitcoin.

First, bitcoin transactions can be quite easily hidden using things like coin mixers and other means.

As well, bitcoin originally did have a lot of privacy features that were to be implemented. With the attempted takeover of bitcoin by the banksters last year, they have been somewhat successful in stamping that out.

However, bitcoin is moving towards Lightning Network (LN) which a lot of privacy experts say will increase the ability to keep transactions private by staying in the LN.

Plus, numerous other cryptos, such as Monero, have powerful privacy features.

So, to think the government would create a new form of money that can so easily hide transactions is also quite absurd.

If you were the government and wanted to track every transaction to extort (tax) all of humanity for eternity, the last thing you would create would be a cryptocurrency.

Those who think cryptos were meant for this purpose don’t understand crypto.

That’s what is so valuable about blockchain technology. If truly decentralized, it’s outside the system and transactions can be easily kept anonymous.

Plus, the main reason why central banks have so much power is their ability to inflate the currency. This is how they control so much in the world.

Would central banks ever willingly risk giving up their ability to create and control new currency?

Bitcoin is inherently limited to 21 million full tokens that will ever be created. This makes it a finite resource, like gold, and is largely why it is such a threat to the system.

So, those who think bitcoin is a tool of the state and the central banks not only don’t understand how it works… they also don’t understand money.

Bitcoin is innately anti-state and anti-central bank.

Conspiracy #4 — Is Jeff Berwick A Joo Who Works For The Government?

I’ve spent my entire life working outside the system and dedicated the last 10 years to destroying governments and central banks. I am Chief Editor of the Austrian economics-based financial newsletter, The Dollar Vigilante.

I’m the host of the world’s largest anarcho-capitalist podcast, Anarchast.

And I am the founder of the most popular anarchist/voluntaryist event, Anarchapulco.

Plus, I’ve publically written or spoken on the internet daily since 2010 about how we need to get rid of governments and central banks.

Yet, I work for the government? Does that make any sense?!

About as much sense as me, with a Scottish last name, being a Joo.

But, believe whatever you want! I know people will no matter what I say.

Still, cryptocurrency is not a government inside job. You can take that to the bank.