Why Michael Pento Should Just Keep His Mouth Shut

Posted 02 Apr 2013

[pullquote]One aspect of technology is that it takes intellectual capacity along with consistent and diligent effort to become competent.[/pullquote]Michael Pento, a fairly prominent gold bug, recently appeared on CNBC for a discussion on Bitcoin. Based on his performance the only thing I could think of was, 'This has to be an April Fools joke. Then my mind shifted to the phrase that it is better to remain quiet and be thought a fool than to open one's mouth and remove all doubt.'

Mr. Pento really should have read Murray Rothbard who, in The Death Wish of Anarcho-Communists, wrote:

It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a 'dismal science.' But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.


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Whenever I hear someone who is negative towards Bitcoin it makes me wonder if they have even made a single transaction.

Based on the sheer numbers of mistakes, logical fallacies and other foolish things in this interview I have to conclude it was an April Fools joke. Surely Michael Pento is smarter than that.

Really, appealing to the authority of his IT department? That is too funny. After all, if his IT department had any monetary sense then they would have been involved in Bitcoin a lot sooner and have plenty of resources where they would not need to be working for Mr. Pento.

[pullquote]Cyprus has been a wake-up call for people about their money, currency and banking relationships.[/pullquote]TECHNOLOGICAL PREPARATION

In 1994 I had already been using the Internet for several years so I was ahead of the curve. One aspect of technology is that it takes intellectual capacity along with consistent and diligent effort to become competent. Those who have failed to engage in technological preparation are at a severe disadvantage to those who have.

Mastering Information Age tools, like Bitcoin, gives one a huge advantage over those merely using Industrial Age tools just like the Steel and Bronze Ages. And the longer one procrastinates adopting the new technology the further and further they fall behind those who do. Bitcoin merely monetizes the individual's success or failure with adopting a new technology.

This morning I received an email from a friend who wrote:

Well, I kinda wish I had not gotten discouraged with the computer problem I had when we were looking at Bitcoin a few short months ago [NOTE: November 2012] when it was $10 [Current price around $108].  Where do you think this thing is going from here?

I responded:

Yes, it does have some learning curve to it. But I suppose that is why luck is when preparation meets opportunity.

As far as a pullback, you should just read all the bitcoin articles I have written on both RunToGold and HowToVanish. The wealth transfer is really starting to pick up steam and it is getting fun. And check out this inforgraphic:
potential bitcoin prices
I suppose that there are many in this person's position who have heard about Bitcoins but have failed to prepare themselves by (1) understanding the technology and how to safely secure their bitcoins, (2) establishing the relationships where they can buy bitcoins such as having accounts at the exchanges, etc. and (3) having put in the hard work of experimenting with this new currency by actually using it in transactions.


Do not laugh too hard at Bryant Gumbel and Katie Couric. It is easy to forget how relatively recent a phenomenon the Internet is for most persons who use it today!

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Just like the @ symbol in email, based on the Simple Mail Transfer Protocol, SMTP, so likewise Bitcoin is a new phenomenon on the Internet and understanding what a bitcoin address is in the Money Over Internet Protocol, MOIP, as implemented in Bitcoin is going to become common knowledge.

After all, BitPay added 1,300 merchants in March and processed over $5.2m in transactions which is up significantly from their previously highest month of about $700k. Over 243,000 copies of the Bitcoin client were downloaded in March. And that does not count easier to use options like Blockchain.info.

Cyprus has been a wake-up call for people about their money, currency and banking relationships. With the Bank of Canada and Bank of England floating similar 'bail-in' schemes, which poses a grave threat to businesses, depositors should get increasingly cautious about where they keep their capital.

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This new technology of Money Over Internet Protocol is going to continue getting easier to use and more widely spread. This is going to greatly increase transactional demand. And that means higher prices. So the wealth transfer continues from people like Michael Pento and his clients to holders of bitcoins.

If you plan on protecting, preserving and growing your wealth then you need to get with the times and not listen to ignorant fools. So get a copy of the Free Bitcoin Guide to learn how to get started.

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