[Chugalug] A comment on the Bitcoin .. fraud

Aaron Welch n2nightfall at gmail.com
Mon Apr 15 18:20:40 UTC 2013

+5 for the point on entropy.  Especially those folks who created the coins when they were easy and let hundreds if not thousands of them expire into the dark part of the interwebs.


On Apr 15, 2013, at 12:13 PM, Dan Lyke <danlyke at flutterby.com> wrote:

> On Mon, Apr 15, 2013 at 7:10 AM, Stephen Kraus <ub3ratl4sf00 at gmail.com> wrote:
>> I criticize it because numerous economics professors criticize it.
> I don't think you need to look to outside sources for reasons to be
> skeptical of bitcoin, on the other hand there are tremendous profits
> to be made from bubbles if you can figure out when to get off.
> Objects have value because people collectively  believe they have
> value, but currencies also have the property where too much rarity
> means they're no longer usable as a currency. Collector's items aren't
> fungible, which means they don't work as currency: You have to find a
> buyer for that specific item.
> I believe the overall concept is flawed for a simple reason: Currency
> supply is capped at at 21 million bitcoins. Over time bitcoins will be
> lost, people will die and not leave codes to their wallets, hardware
> will fail, entropy occurs.
> Which means that the currency supply will, inevitably, shrink. This,
> to a point, encourages hoarding, until people lose faith in the
> currency and it collapses entirely.
> The question is: how far off is that time?
> So, yeah, you won't find me playing in that bubble, but if you wanna
> soak some suckers on the rise up, no skin off my nose... And who
> knows, that rise may last for years and years.
> Dan
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