Wednesday, January 20, 2016

Bitcoin Titan Throws in the Towel

The reason this blog was never a fan of Bitcoin is because we know the difference between money and credit and tallies.  Bitcoins' hypesters called it money, when it was not even credit, but a tally of who may owe someone else.  But since the tallies were marked in sand (I like that image, given the silica nature of the media) it was a poor tally of putative credit.
Not long ago, venture capitalists were talking about how Bitcoin was going to transform the global currency system and render governments powerless to police monetary transactions. Now the cryptocurrency is fighting for survival. The reality came to light on Jan. 14, when its influential developer, Mike Hearn, declared Bitcoin a failure and disclosed that he had sold all of his Bitcoins. The price of Bitcoin fell 10 percent in a single day on the news, a sad result for those who are losing money on it.
If you go to Hearn's original post in the link, you'll read he insisting he always said it was an experiment, never invest more than you can lose.  No doubt!  But that is just the thing...  in the last decade or whatever of Bitcoin, one only hears breathless hype of gadflies and the Cheney-esque sonorous assurance of accomplished dotcommers.  Get in! Nonsense either way, and they should have known it.

So is there a underlying platform that might be salvaged?  Sure, but for what?  We do not need lightening speed and instant settlement of accounts.  We need human level bene-credit extension among communities.

Feel free to forward this by email to three of your friends.


Anonymous said...

China's central bank wants to launch its own digital currencies to cut the costs of circulating traditional paper money and boost policymakers' control of money supply, the People's Bank of China (PBOC) said on Wednesday.