Bitcoin, the City traders' anarchic new toy

Comments (14)

To be clear, I would say the same thing about Dollars, Yen, Won, Crowns, Rands…

Apr 01, 2012 8:30pm EDT  --  Report as abuse
JonathanOwens wrote:

This is an excellent and well balanced article on the emerging Bitcoin economy. Bravo.

Apr 01, 2012 9:48pm EDT  --  Report as abuse
JoeDuncko wrote:

The most fair Bitcoin article I’ve ever read.

Apr 01, 2012 11:22pm EDT  --  Report as abuse
evoorhees wrote:

Bitcoin’s value does not exist merely because “people believe in it” like with fiat currencies. Rather, it’s value derives from its usefulness. Bitcoins are valuable because their properties make them effective in the transfer, protection, and storage of value in an age increasingly digitized.

Monies are valuable because governments force them upon you (fiat USD and EUR, etc) or because they’re useful (gold and bitcoin). Bitcoin is by far the most exciting (and important) technology since the internet.

Apr 01, 2012 11:47pm EDT  --  Report as abuse
Coinabul wrote:

Very nice article! I’m a little sad that you didn’t even mention our website (http://www.coinabul.com) where you can buy gold, silver, and other precious metals with Bitcoin. But… no, fantastic article! I won’t pout. I promise!

I hope you keep interested in Bitcoin!
-Jon

Apr 01, 2012 12:28am EDT  --  Report as abuse
GeoRW wrote:

Bitcoin is not backed up by some fund but it’s backed up by investments of all miners who put their work, hardware and electricity costs into mining(creating) bitcoins. That’s why bitcoins HAVE some initial value. It’s not based only on trust, though trust is important, as is in any kind of money, government-issued or not.

Apr 02, 2012 4:11am EDT  --  Report as abuse
genuise wrote:

Hi, very well written article.

I think Bitcoin is not only a currency but also a very potential economic experiment which allows new business models and even new unregulated markets to emergy.

thank you!!!

Apr 02, 2012 9:14am EDT  --  Report as abuse
0noggin wrote:

The premises underlying the arguments for why this “won’t work” sound very similar to the arguments why Linux would never work. For that reason, and because of the tenacity and idealism of the geeks and nerds who support the concept, I give Bitcoin a 50/50 chance of making it.

Apr 02, 2012 11:22am EDT  --  Report as abuse
mwhitlock wrote:

This persistent myth that people won’t spend money in a deflationary environment has got to die. Did you all put off buying the latest and greatest iPhone because you knew it would be cheaper in a year? Of course not. To assume that consumers will only buy a good if its price is trending upward is a total fallacy.

Apr 02, 2012 12:54pm EDT  --  Report as abuse
hazek wrote:

Another great thing about Bitcoin is that is regulated by market participants as opposed to a central authority. Finally we have a real experiment of what we call a free market, which can’t be centrally planed that will show us once and for all that freedom is the best way for a society to govern itself and that all the retarded economic theories out there about how we need a government to regulate or tax and provide certain services, how we need a central bank to monitor the fiat currencies, how we need the bankers to facilitate trade will be put to rest. And good riddance, I will happily dance on these theory’s graves.

Apr 02, 2012 1:40pm EDT  --  Report as abuse
BrillGalt wrote:

Gold is not backed by anything either. Golds MONETARY value is due to demand and scarcity — it’s difficult to get. If gold were as available as, say, dirt…it would not be as monetarily valuable.

Bitcoin is “backed” by the simple fact that it is VERY VERY VERY difficult to acquire…just like gold. The demand will come simply when people realize its advantages compared to their current currency.

Nothing can stop an idea whose time has come.

Apr 02, 2012 11:30pm EDT  --  Report as abuse
DanielleEber wrote:

Bitcoin has value because they are scarce, much as gold and art masterpieces are. You cannot arbitrarily make more coins at will. Since they are easy to trade, they have value as a trading commodity.

Fiat currencies are a different matter. They have value because laws require their use to pay debts or taxes. However the quantity of fiat currencies is arbitrarily determined by central banks.

Apr 03, 2012 8:00am EDT  --  Report as abuse
CDanielOL wrote:

Really nice article.

Apr 03, 2012 11:38am EDT  --  Report as abuse

The Article forgets to mention some of the great financial intelligence tools such as the Bitcoin Sentikator Index that professional investors already use to enhance their trading and gain deeper insights into the bitcoin market.

Apr 04, 2012 3:15am EDT  --  Report as abuse
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