Friday, 7 March 2014

Bitcoin has theory and history on its side

A bit of Austrian economics for a Friday afternoon. Can anything stop bitcoin? Who is wearing no clothes? The central bankers or the bitcoin miners and buyers of very expensive code that disappears from hotwallets at a ferocious speed.

A good read in full.

 Bitcoin has theory and history on its side [Cobden]

The Bitcoin phenomenon has now reached the mainstream media where it met with a reception that ranged from sceptical to outright hostile. The recent volatility in the price of bitcoins and the issues surrounding Bitcoin-exchange Mt. Gox have led to additional negative publicity. In my view, Bitcoin as a monetary concept is potentially a work of genius, and even if Bitcoin were to fail in its present incarnation – a scenario that I cannot exclude but that I consider exceedingly unlikely – the concept itself is too powerful to be ignored or even suppressed in the long run. While scepticism towards anything so fundamentally new is maybe understandable, most of the tirades against Bitcoin as a form of money are ill-conceived, terribly confused, and frequently factually wrong. Central bankers of the world, be afraid, be very afraid!

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