You asked me to comment on “The Logic Problems That Will Eventually Pop the Bitcoin Bubble,” as published by Vanity Fair on 31 March 2013.
My critique is that it is VERY old news. 2013. I was just getting into Bitcoins by then, and loosing my ability to walk. Can I counter the piece? No, not really. The writer has the same problem everyone else has. They think Bitcoin is supposed to ACT like money. Then they go on a tirade of comparisons to other Monetary events. Bitcoin is not a Monetary event. No one, I repeat, NO ONE, save for space aliens, has seen anything like this on this planet as far as we know. EVER! Bitcoin is just the first Killer App out of the Blockchain.
It’s not about making Money on an investment. It’s about protecting Assets. Were the Greek’s Monetary Assets protected recently?
Were the depositors in MF Global, were their Assets protected? WHO has the control over the Dollar, and the Assets that are supposed to be on deposit? Jannet Yellen?
The distributed ledger, acting as a Trusted Third Party “Auditor,” now protects my assets from any number of issues that are bound to happen to the US Dollar system. The distributed ledger now allows me to convert, out of Fiat, any amount I have access to. As of right now, my NET worth, less than $5 thousand dollars, is on the Blockchain.
Sad as that may sound, I would rather be penniless in the Dawn of a new era in Anarchist Capitalism. The horrific reality behind the Current Monetary system is that it is backed ONLY by Debt. The blood of children yet to be born as Stephan Molyneux likes to say. The exciting reality of the coming VALUE Exchange system is that it will organically follow the principles of Natural Capital and real cost economics now that enough eyeballs are on it.
Remember gentlemen, the current banking system in the world is an invention of Jeckel Island from 100 years ago. Just because it is adopted and used widely doesn’t mean that it properly evolved to that. It was Violently and Coercively CRAMMED down the throats of this world. Modern Fiat Debt Banking is an anathema. It WILL die a horrible and prolonged death. 30 or so Banker suicides tell me all I need to know about that. As the old system falls away, more people wake up to realize that we are borrowing money from our future selves to keep the current ponzi scheme going…aka the Federal Reserve.
Once you see the error, you can correct it. Blockchain just obsoleted The Fed, the World Bank, the IMF and the BIS. The poorest 5 billion on the planet now have peer to peer access to cashless banking, through SMS. BLOG THAT! ; )
ROBERT STEELE: I have also discussed with Ty and Neal Rauhauser the concept of “mining” the blockchain that some consider a form of exploitation, a negative. They both assure me that the term “mining” is inappropriate, that the term “auditing” should be used instead so that conventional mind-sets can see the role being played by those who are investing processing power in the maintenance of the blockchain, and while doing so, protecting, validating, and enabling the larger process to retain its integrity.