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FSN: Bitcoin: Money of the Future or Old-Fashioned Bubble?
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
[Ed. Note: Quote: "Let us not become so enamored of an innovative stateless solution that we forget Austrian economics and hitch libertarianism’s wagon to something heading for a crash. "]
by Patrik Korda
Mises.org
Bitcoin has been all the rage lately. The stuff, or lack thereof, runs on peer-to-peer technology, is fully decentralized, has no patents, and is open source. Currently, there are almost 11 million bitcoin units in existence and the maximum amount of bitcoin units that will ever be created by the logic of its design are 21 million. For more details on how they work, see the recent Mises Daily “The Money-Ness of Bitcoins” by economist Nikolay Gertchev.
The Issue
While bitcoins are designed so that they cannot be hyperinflated in name, they certainly can be hyperinflated in substance. Already, there are numerous knockoffs such as litecoin, namecoin, and freicoin in place. This is a particularly valid point because bitcoin is a starfish, i.e., it is fully decentralized. As stated by Ori Brafman and Rod A. Beckstrom,
Continue Reading at Mises.org…
2013-04-09 00:33:03
Source: http://silveristhenew.com/2013/04/08/bitcoin-money-of-the-future-or-old-fashioned-bubble/
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