Bitcoin, anyone? No, I'll pass, thanks...I like a little more substance to my currency.

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Bitcoin
Image: money.cnn.com

Bitcoin? No thanks...

I haven't gotten into arguments with right-wingers for a long time and I don't miss them.  I got tired of them because they never seemed to use a single brain cell to back up their points.

Libertarians are the worst of the lot because they live in a pure fantasy world where Ayn Rand's fiction is, to them, serious economic theory.  They never appreciated my telling them that Howard Roark is just as real as Harry Potter.  In essence, they all saw 'the emperor's clothes' although he was butt naked.  They had no connection with reality and still do not.

That's what I feel about Bitcoin.

I found a great explanation of Bitcoin in this article by Kevin Roose on the New York Magazine site:  The Doomsday Cult of Bitcoin.

From the excellent article:

Today, another nail hit the coffin courtesy of Flexcoin, a so-called "Bitcoin bank" that announced that all its users' accounts had simply vanished.

For months now, Bitcoin soothsayers have proclaimed that the virtual currency is going to Change Everything. The mass adoption of Bitcoin, they told us, would utterly transform the way the world stores and exchanges value. Government-backed currency would become obsolete.

In other words, there's no there there!  Bitcoin is virtual slight-of-hand, legerdemain. 

These may seem like isolated incidents, but together, they add up to a massive, damning breach of trust. I don't doubt, as Nobel laureate Robert Shiller put it last week, that "something good can arise from [Bitcoin's] innovations." But Bitcoin itself will never recover from these initial pratfalls.

The nature of a speculative commodity like Bitcoin is that it essentially runs on hope – the more people who buy the hype, the higher the value goes, and the more firms like Andreessen Horowitz are willing to pump money into strengthening the Bitcoin ecosystem. Wish for the UFO hard enough, and it might actually arrive.

But the Bitcoin dream is all but dead. Now the true believers are trying to cope with their setbacks by increasing their numbers. And if history is any guide, they’ll keep telling you the bright future of Bitcoin is just ahead, long after they've ceased to believe it themselves.

Someone finally pointed out that the emperor is naked.

Oh, by the way, don't take any wooden nickels.

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  • Rev

    Facepalm.

  • paulej

    Clearly, somebody valued them. I've purchased and used bitcoins in the past, but don't hold any. I still see their value, though. They're great for online purchases or sending money over long distances. Yeah, some firms did not adequately address security, but you can't blame bitcoin for that. What they did was apparently like running a bank with a kids piggy bank as the security vault.

    Out of these early disasters will likely rise firms that handle security better.