I’m fascinated by Bitcoin, but not as a currency. I enjoy it’s mathematical underpinnings, its algorithms, its self-enforcing decentralization (I like torrents for the same reason). It is pretty ingenious with its block chain record of transactions and its use of cryptography, which I love.
As a currency, though? It’s absurd. Ignoring the fact that every major exchange eventually seems to go under, as a currency it has a lot of limitations. It’s incredibly volatile: any merchant that accepts Bitcoin for payment for something like a TV has to contend with the fact that in a week that Bitcoin may be two TVs, and a week later just half of one. Foreign currency exchange risk is a huge factor for even the most languorous of currencies, such as the USD/EUR exchange rate; I can’t imagine keeping the books on something as insane as Bitcoin.
Also, I find it hilarious that it seems the most avid haters of fiat currency such as the U.S. Dollar are most in love with Bitcoin, which is the ultimate in fiat currency. Maybe it’s the anarchic rejection of any centralization, or maybe because Bitcoin’s inherent deflation is in line with what contemporary goldbugs want. In any case, seeing people cling to Bitcoin and reject the major reserve currency that can be used in nearly every country on Earth is pretty funny.
I have no idea what the future of Bitcoin will be, but I think it’s much more likely to be a fundamental case study in a math or crypto class than a fundamental part of our economy in the future.
- Currently Listening To: "Idioteque", Radiohead