Wednesday, June 5, 2013

Michel Bauwens — Is Bitcoin a system designed to create bitcoin billionaires?

Bitcoin can be described as a deflationary currency, or even a mere (virtual) commodity. Like gold, bitcoins are valuable because of their scarcity — Bitcoin’s money supply is limited to 21 million of units. A feature, according to libertarians and gold standard advocates, yet a bug for many.
P2P Foundation Blog
Is Bitcoin a system designed to create bitcoin billionaires?
Michel Bauwens

4 comments:

Dan Kervick said...

Bitcoin is one of the many silly and crackpot fads of our time - like quantitative easing.

Bill said...

Of course Bitcoin was designed to create bitcoin billionaires. It paid off for the original designer(s), didn't it? Where do you think that he/she/they are? Basking on the beach, eh?

Bill said...

The article misses a point about a deflationary fiat currency with no backing. Because it is deflationary, it is naturally hoarded. But here comes the point that is missed. If it is hoarded, who is going to redeem it? It could crash at any time. Maybe money laundering will keep it afloat, maybe not.

Magpie said...

Actually, seen as a social experiment, Bitcoin is very interesting.

I truly regret having ignored it for so long (so, yes, I can be a bit of a jackass).

A system whose natural outcome is to provide additional wealth to those already wealthy, in exchange for doing nothing.

Any guesses what this little experiment looks like?

And a system where one can find all sorts of handy statistics...

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Where's Roddis? Right now, I'd be glad to buy him a silver milkshake. ;-)