Bitcoin
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The decentralised nature attracts libertoonian idiots (go read the Bitcoin forums for more idiocy than you ever thought possible). There are Bitcoin advocates who are not annoying [[Ayn Rand|Randroid]] fools, but the ones who are tend to drown out all others. | The decentralised nature attracts libertoonian idiots (go read the Bitcoin forums for more idiocy than you ever thought possible). There are Bitcoin advocates who are not annoying [[Ayn Rand|Randroid]] fools, but the ones who are tend to drown out all others. | ||
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One of the otherwise-saner advocates is Rick Falkvinge, founder of the Swedish [[Pirate Party]], who has put all his savings into Bitcoins.<ref>http://falkvinge.net/2011/05/29/why-im-putting-all-my-savings-into-bitcoin/</ref> Though he also details its problems.<ref>http://falkvinge.net/2011/06/04/bitcoins-four-hurdles-part-one-usability/</ref><ref>http://falkvinge.net/2011/06/06/bitcoins-four-hurdles-part-two-transactions/</ref><ref>http://falkvinge.net/2011/06/08/bitcoins-four-hurdles-part-three-escrow/</ref><ref>http://falkvinge.net/2011/06/10/bitcoins-four-hurdles-part-four-exchanges/</ref> | One of the otherwise-saner advocates is Rick Falkvinge, founder of the Swedish [[Pirate Party]], who has put all his savings into Bitcoins.<ref>http://falkvinge.net/2011/05/29/why-im-putting-all-my-savings-into-bitcoin/</ref> Though he also details its problems.<ref>http://falkvinge.net/2011/06/04/bitcoins-four-hurdles-part-one-usability/</ref><ref>http://falkvinge.net/2011/06/06/bitcoins-four-hurdles-part-two-transactions/</ref><ref>http://falkvinge.net/2011/06/08/bitcoins-four-hurdles-part-three-escrow/</ref><ref>http://falkvinge.net/2011/06/10/bitcoins-four-hurdles-part-four-exchanges/</ref> | ||
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[[File:Bchistory.png|thumb|An example of a one-day plummet in price, a not infrequent occurrence that happens whenever someone dumps their coins.]] | [[File:Bchistory.png|thumb|An example of a one-day plummet in price, a not infrequent occurrence that happens whenever someone dumps their coins.]] | ||
Right now, Bitcoin's main function is as a [[pump-and-dump]] scheme wherein early adopters - who have more bitcoins than anyone else ever will - hype it up so they can offload their bitcoins onto fools who think they'll strike it rich as speculators. Thus, Bitcoin's creators have successfully mined a hitherto-unexploited resource: the vast reserves of unexamined privilege amongst computer programmers. Remember: ''the'' classic con is to get the mark to think they're putting one over on ''you''. | Right now, Bitcoin's main function is as a [[pump-and-dump]] scheme wherein early adopters - who have more bitcoins than anyone else ever will - hype it up so they can offload their bitcoins onto fools who think they'll strike it rich as speculators. Thus, Bitcoin's creators have successfully mined a hitherto-unexploited resource: the vast reserves of unexamined privilege amongst computer programmers. Remember: ''the'' classic con is to get the mark to think they're putting one over on ''you''. | ||
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==External links== | ==External links== | ||
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* [http://www.bitcoin.org/ Bitcoin.org] | * [http://www.bitcoin.org/ Bitcoin.org] | ||
* [http://forum.bitcoin.org/ Bitcoin forums, glorious home of the revolution] | * [http://forum.bitcoin.org/ Bitcoin forums, glorious home of the revolution] | ||
Revision as of 07:07, 1 November 2011
| The dismal "science" |
| Key concepts |
|
$ Economics |
| More about economics |
| Notable economists |
“”WHOA BITCOIN. ECONOMIC TOOL DESIGNED BY ENGINEERS COLLAPSE??? HULK SHOCKED
|
| —@SecurityHulk[1] |
Bitcoin is an Internet-based digital currency, authenticated using strong cryptography.
Contents |
The economics
The interesting bit about Bitcoin is that it is entirely decentralised - there is no central bank backing. Previous virtual currencies, such as E-Gold, Flooz, Beenz, Lindens or WoW gold, have always had an organisation behind them. This lack of central bank backing means that, were governments to try to do something about it, they would not have a central point of attack.[2]
Bitcoins are entirely imaginary fiat currency, but not particularly more so than US dollars, and could be a general currency if 300 million people similarly behaved as though it was one, i.e., would do work in exchange for it. Its biggest problem as an exchange medium is that it is not widely accepted, and that trading is thus very thin indeed.
The Economist takes it seriously (or at least refrains from just poking fun at it) and finds it quite interesting.[3] Other economists have criticized the idea (to the point of calling it a "scam"), citing inherent design problems.[4] Paul Krugman refrains from making fun of it, but considers it a reimplementation of the gold standard, with the economic problems that implies.[5]
You can buy actual stuff with bitcoins! Mostly internet services, geek toys, phone sex[6] and illegal drugs.[7]
The advocates
The mathematics is robust, so many internet libertarians think this is all that is needed, because they don't understand people and know very little about economics and apparently nothing of history. This then bites them in the arse when they discover that running a Magic: The Gathering card exchange site is insufficient experience to securely run a currency exchange.[8]
The decentralised nature attracts libertoonian idiots (go read the Bitcoin forums for more idiocy than you ever thought possible). There are Bitcoin advocates who are not annoying Randroid fools, but the ones who are tend to drown out all others.
One of the otherwise-saner advocates is Rick Falkvinge, founder of the Swedish Pirate Party, who has put all his savings into Bitcoins.[9] Though he also details its problems.[10][11][12][13]
Should you buy in?
Right now, Bitcoin's main function is as a pump-and-dump scheme wherein early adopters - who have more bitcoins than anyone else ever will - hype it up so they can offload their bitcoins onto fools who think they'll strike it rich as speculators. Thus, Bitcoin's creators have successfully mined a hitherto-unexploited resource: the vast reserves of unexamined privilege amongst computer programmers. Remember: the classic con is to get the mark to think they're putting one over on you.
External links
- Bitcoin.org
- Bitcoin forums, glorious home of the revolution
- Buttcoin.org, criticism by vicious statists who hate freedom
Footnotes
- ↑ http://twitter.com/#!/securityhulk/status/126380860864864257
- ↑ You would be picturing the Randgasms about now.
- ↑ Bits and bob ("Babbage", The Economist, 2011-06-13); print version
- ↑ http://www.quora.com/Bitcoin/Is-the-cryptocurrency-Bitcoin-a-good-idea?srid=pxt
- ↑ http://krugman.blogs.nytimes.com/2011/09/07/golden-cyberfetters/
- ↑ http://forum.bitcoin.org/?topic=3066.0
- ↑ The Underground Website Where You Can Buy Any Drug Imaginable (Adrian Chen, Gawker, 2011-06-01)
- ↑ Inside the Mega-Hack of Bitcoin: the Full Story (Jason Mick, Daily Tech, 2011-06-19)
- ↑ http://falkvinge.net/2011/05/29/why-im-putting-all-my-savings-into-bitcoin/
- ↑ http://falkvinge.net/2011/06/04/bitcoins-four-hurdles-part-one-usability/
- ↑ http://falkvinge.net/2011/06/06/bitcoins-four-hurdles-part-two-transactions/
- ↑ http://falkvinge.net/2011/06/08/bitcoins-four-hurdles-part-three-escrow/
- ↑ http://falkvinge.net/2011/06/10/bitcoins-four-hurdles-part-four-exchanges/