Since I have an interest in money and credit and so on with a biz blog, I've been commenting on bitcoins. Today a central source of bitcoins has gone haywire, mtgox.com Mish spotted it early, and offers sober assessments.
I think people who approach business as investors, business as a means to rent-seeking, tend to fall for these scams. Certainly with the equities bubble in play right now, countless of "investors" (seeking rents) are about to experience condign punishment.
I was reading a comprehensive summary on theories of entrepreneurship, risks and profit (opens as a .pdf) which is an excellent review of the thinking of many leading lights. What is mystifying is how those very leading lights get some aspect of it so wrong:
Where some writers believe entrepreneurs ignore risk, almost all assume risk is central.
All writers assume profits are the motivation in entrepreneurship, and the,
They disagree on the definition of profits.
Now it is all Austrian economics, so it is all pretty good, but if you are actually in the trenches, not an economist studying or someone rent-seeking by speculative investment, one better not take these writers too much to heart.
By sticking to the radical (root) definitions, one can avoid the problems, and sidestep popular scams. Bitcoins is shakey today, and who knows when it will go down, but down it will go, because it is not what it claims to be, but it is what people want it to be, money for nothing.
(Start at the 2 min mark)
Feel free to forward this by email to three of your friends.
I think people who approach business as investors, business as a means to rent-seeking, tend to fall for these scams. Certainly with the equities bubble in play right now, countless of "investors" (seeking rents) are about to experience condign punishment.
I was reading a comprehensive summary on theories of entrepreneurship, risks and profit (opens as a .pdf) which is an excellent review of the thinking of many leading lights. What is mystifying is how those very leading lights get some aspect of it so wrong:
Where some writers believe entrepreneurs ignore risk, almost all assume risk is central.
All writers assume profits are the motivation in entrepreneurship, and the,
They disagree on the definition of profits.
Now it is all Austrian economics, so it is all pretty good, but if you are actually in the trenches, not an economist studying or someone rent-seeking by speculative investment, one better not take these writers too much to heart.
By sticking to the radical (root) definitions, one can avoid the problems, and sidestep popular scams. Bitcoins is shakey today, and who knows when it will go down, but down it will go, because it is not what it claims to be, but it is what people want it to be, money for nothing.
(Start at the 2 min mark)
Feel free to forward this by email to three of your friends.
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