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Sorry, Bitcoin Isn’t a 'Currency'

1 pointsby pkhamreabout 12 years ago

1 comment

mtgxabout 12 years ago
I welcome good criticism of Bitcoin, but that one seemed like a poorly written article.<p>His main arguments were that "nobody buys anything except drugs with Bitcoin". Well that's just completely false.<p>And the second was that Bitcoin is used mainly for speculation. Could be true, but I don't think that will always be true. Probably just an early life "feature" of a currency made from scratch. When it's so "little" of it (value wise), it's easy to increase its value hundreds of percentages overnight, just like when we saw Android grow 900% in a year back in 2010 I think. But then it levels off, when the rule of numbers goes into effect. I'm pretty sure that's what will happen to Bitcoin, too.<p>When a country creates a new currency, the speculation might not be that high because all of the sudden that currency is worth <i>a lot</i>, backed by all the assets of that country. So it starts off at a pretty high value level. Bitcoin couldn't have afforded to do that, unless there were some billionaires putting all their money into Bitcoin from day one.