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By anonimouse (Wed Sep 13, 2017 at 05:03:56 AM EST) money, bitcoin, fiat (all tags)


 I can't say I agree with him:
The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.

 
The same can be said of most currencies today really as they are fiat currencies and not exchangeable for gold or anything else. Currencies are mostly just an agreement to have a medium of exchange, and BitCoin is just such a medium. IHis disapproval really seems purely that this particular bit of financial magical handwaving isn't done by a Government

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BitCoin | 12 comments (12 topical, 0 hidden) | Trackback
I don't know. by dark nowhere (4.00 / 2) #1 Wed Sep 13, 2017 at 06:01:40 AM EST
Bitcoin itself is certainly not a fraud. I don't think anyone truly expected it to get anywhere until it did. It was just a possibly great idea, and a proof of concept. But these also-ran cryptocurrencies are increasingly more suspicious.

As for the value in bitcoin, it lacks state backing and so-called inherent value. I say so-called because it is a technical term which technically applies in this way. It's theoretically an exceptional currency (if you can wait 10-40 minutes), but a poor store of value, in almost exactly the way that is a poor store of energy. You'll never get all of it out, but that's okay in physics and, I suspect, in economics too.

Bitcoin is strange to economics. It certainly defies traditional analysis. I don't know if it's viable. But should it fail there's more to it than simply being deflationary and lacking inherent value. If nothing else, it's far more interesting than that and we ought to study it regardless of how we feel about it. We have an opportunity with all of this publicly-available data, a rare one should the venture fail.

Are the buyers smart? Many are doing it profitably, and not just by speculation, but by avoiding local economic disasters or by purchasing ~cough~ goods not otherwise available to them. I think the vast majority of the losers are speculators, and that's fine by me. They surely help inflate the value, but I don't believe they're responsible for its viability.

Whoops, sorry for the essay.

Chill out, snowflake.

Oops by dark nowhere (2.00 / 0) #2 Wed Sep 13, 2017 at 06:04:46 AM EST
"in almost exactly the way that heat is a poor store of energy."

Chill out, snowflake.

[ Parent ]
More comment essays! by Scrymarch (4.00 / 1) #3 Wed Sep 13, 2017 at 08:08:57 AM EST


Iambic Web Certified

[ Parent ]
Lacking inherent value by Herring (4.00 / 1) #5 Wed Sep 13, 2017 at 02:09:26 PM EST
The value (in "real" currencies) does seem rather volatile, but this could just be because it's more susceptible to speculation. That's not to say that traditional currencies aren't - far from it.

It also doesn't have any levers that can be pulled to control the supply (e.g. interest rates, quantitative easing). It's interesting though.

You can't inspire people with facts
- Small Gods

[ Parent ]
Presumably from experience by wumpus (4.00 / 2) #4 Wed Sep 13, 2017 at 09:26:09 AM EST
How many securities with iffy backing has J.P.Morgan made? I doubt the CDOs (happy mortgage fraud bonds) were the only time they created funds out of nothing.

Note that the whole point of government control is likely control by Morgan and Sachs.

Wumpus

It's an absolute bust by Dr Thrustgood (4.00 / 2) #6 Wed Sep 13, 2017 at 03:25:42 PM EST
The current price is fuelled by one exchange that is literally making money out of thin air (USD tethers - you can google for details). Combine that with this ICO nonsense that is, in turn, fuelled by Bitcoin payments - when this bubble bursts it is not going to be pretty.

I do enjoy seeing people criticise a guy that represents an industry that routinely invests in Peruvian farming supplies (and I do mean that literally). Barclays in particular were notorious for their South American investment portfolios.

And yet - apparently this dude is too goody two shoes for Bitcoin? Well bless their cotton socks.



On a more technical level by Dr Thrustgood (4.00 / 2) #7 Wed Sep 13, 2017 at 03:28:12 PM EST
Bitcoin is a very poorly implemented distributed DRM to stop people copying and pasting values.

The tech is outdated, the implementation banal, and the end result? God dammit, this is not the future we were promised!



God dammit, this is not the future we were promise by clover kicker (2.00 / 0) #8 Wed Sep 13, 2017 at 07:11:00 PM EST
I say that a lot lately.

[ Parent ]
Very interesting topic. by gmd (2.00 / 0) #9 Wed Sep 13, 2017 at 09:47:31 PM EST
There is an interesting article on this at zerohedge. Basically non sovereign issued crypto will be forced underground, and governments will come up with their own "digital fiat". Essentially we are fucked by the illuminati, as always.

--
gmd - HuSi's second most dimwitted overprivileged user.
Me by ucblockhead (4.00 / 2) #10 Thu Sep 14, 2017 at 04:56:06 AM EST
I've got my money in tulips.
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[ucblockhead is] useless and subhuman
So 1890s by dev trash (2.00 / 0) #11 Fri Sep 15, 2017 at 11:38:42 PM EST
Flooz is where it's at

--
I DON'T CARE ABOUT YOUR BALLS! ->clock
[ Parent ]
The root reason bitcoin has value.... by ObviousTroll (2.00 / 0) #12 Mon Sep 18, 2017 at 12:15:56 PM EST
is because there are people who depend on it to make anonymous transactions for presumably illegal reasons. These people create a base level of demand for bitcoins which creates a market that is open to others who don't have to use bitcoins but might if it was convenient. At some level this is similar to the dollar in that people hold dollars because there exist people who have to use dollars to pay their taxes. 

So, yeah, in the sense that bitcoin's value is based on criminal activities (with vast amounts of speculation piled on top...) pretending that it doesn't constitutes some sort of fraud.

What I'm really curious about, though, is what happens when the last bitcoin is minted and all those bitcoin miners are suddenly out of work...

An Angry and Flatulent Pig, Trying to Tie Balloon Animals
BitCoin | 12 comments (12 topical, 0 hidden) | Trackback