|
Wow. So many smart people posting here. Yes, plenty of know-it-alls, but many are know somethings, so I got a lot of value out of this thread.
First, regarding the value of US and other currencies. It is backed by the credit of the US Government. Until the government collapses dollars will be a stable currency. They are still the world's standard, though that could change. Anyway, the value of dollars is not a fantasy just because they are no longer tied to the price of gold. That libertarian argument has been thoroughly debunked. Give it a rest.
Second, bitcoins are valuable because there are a limited number of them (I actually question this) and people are willing to buy them, like they buy real estate, or art, or tulips. These assets are valued exclusively by willing buyers in the market. So the more salient question is: who is buying bitcoins, and why. To me, watching from the outside, it seems to be speculators selling to speculators, who are taking outsize risks for outsized profits. If you like to gamble, seems like a better bet than Vegas, where you also have no control or way of knowing if and how you will win.
Third, there is the issue of security. If our credit cards can easily be stolen by sophisticated hackers, you can bet your ass your bitcoins are at risk, and who's going to help you? Interpol? The bank of bitcoin?
Finally, until real businesses are taking bitcoins for real items, like real estate, cars, and toasters, we're talking about funny money, valuable to other speculators, on the internet, which is part of real life, but really not.
I'm tempted, but my appetite for gambling is pretty well sated by being an entrepreneur.
__________________
"Gonna scare you up and shoot you
Cause Mister Charlie told me so"
|