An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Monday, April 22, 2013
Zero Hedge — BitCoin, Or BetaCoin? What The Venture Capitalists Are Thinking
I don't think that we should jump to conclusions and either see Bitcoin as the beginning of the end of state currency or as just a blip on the screen. I think that this post is making that point. There have been and are successful complimentary currencies, and PayPal has changed the game for small retailers and cross border money exchange even though it uses state currencies.
I continue to maintain that digital currencies, including alternatives, are the future, and it is uncertain as yet how this will manifest. Entrepreneurs are already interested in Bitcoin because they see potential for gain, although entry risk is high.
Our payment systems are already highly digitized, and will surely continue to evolve in that direction. But that is completely unrelated to the question of the medium of payment.
But that is completely unrelated to the question of the medium of payment.
Not completely. I don't think we yet grasp the implications of digital currency in a digitized world.
It took eons for agriculture to replace hunting and gathering and millennia for the industrial society to replace the agricultural society. Now the knowledge society is beginning to replace the industrial society after only a few centuries. What this has in store for humanity can only be hypothesized at present.
Since money broadly speaking is so integral to society and economies, the shift to chiefly digital money is going to have a profound effect in shaping the information or digital age and the knowledge society.
Interestingly in this respect, Bitcoin is modeled on gold and one of its purposes is to act as a substitute and eventual replacement for physical gold.
"Interestingly in this respect, Bitcoin is modeled on gold and one of its purposes is to act as a substitute and eventual replacement for physical gold."
As a currency substitute, Bitcoin strikes me as somewhat more deflationary than gold given the ultimate cap on its supply.
That's true, Ed, but unlike gold there can be competing alternative currencies and will be, I suspect. Although it is possible to think of other PM's as alternatives to gold, too.
Disturbing to watch zero-hedgers gush about this neat little experiment in peer to peer networking.
ReplyDeleteThe only really interested parties in this bitcoin thing are speculators who hope to get something for nothing. Same thing with gold bugs.
ReplyDelete"The only really interested parties in this bitcoin thing are speculators who hope to get something for nothing. Same thing with gold bugs."
ReplyDeleteKristjan - If I offered to give you 100 ounces of gold for free...... would you take it?
I don't think that we should jump to conclusions and either see Bitcoin as the beginning of the end of state currency or as just a blip on the screen. I think that this post is making that point. There have been and are successful complimentary currencies, and PayPal has changed the game for small retailers and cross border money exchange even though it uses state currencies.
ReplyDeleteI continue to maintain that digital currencies, including alternatives, are the future, and it is uncertain as yet how this will manifest. Entrepreneurs are already interested in Bitcoin because they see potential for gain, although entry risk is high.
Our payment systems are already highly digitized, and will surely continue to evolve in that direction. But that is completely unrelated to the question of the medium of payment.
ReplyDeleteBut that is completely unrelated to the question of the medium of payment.
ReplyDeleteNot completely. I don't think we yet grasp the implications of digital currency in a digitized world.
It took eons for agriculture to replace hunting and gathering and millennia for the industrial society to replace the agricultural society. Now the knowledge society is beginning to replace the industrial society after only a few centuries. What this has in store for humanity can only be hypothesized at present.
Since money broadly speaking is so integral to society and economies, the shift to chiefly digital money is going to have a profound effect in shaping the information or digital age and the knowledge society.
Interestingly in this respect, Bitcoin is modeled on gold and one of its purposes is to act as a substitute and eventual replacement for physical gold.
"Interestingly in this respect, Bitcoin is modeled on gold and one of its purposes is to act as a substitute and eventual replacement for physical gold."
ReplyDeleteAs a currency substitute, Bitcoin strikes me as somewhat more deflationary than gold given the ultimate cap on its supply.
That's true, Ed, but unlike gold there can be competing alternative currencies and will be, I suspect. Although it is possible to think of other PM's as alternatives to gold, too.
ReplyDeleteHm, http://betacoin.org - ?
ReplyDelete