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Why Bitcoin Is Doomed To Fail, In One Economist's Eyes 537

Posted by timothy
from the wish-I-had-some-to-whine-about dept.
Hugh Pickens DOT Com writes "Economist Edward Hadas writes in the NYT that developers of bitcoin are trying to show that money can be successfully privatized but money that is not issued by governments is always doomed to failure because money is inevitably a tool of the state. 'Bitcoin exemplifies some of the problems of private money,' says Hadas. 'Its value is uncertain, its legal status is unclear, and it could easily become valueless if users lose faith.' Besides, if bitcoin ever really started to take off, governments would either ban it or take over the system says Hadas. The authorities might be motivated by a genuine concern about the stability of a shadow monetary system or they might act out of self-preservation because tax evasion would be too easy in a parallel economy. 'Part of the interest in virtual currencies like bitcoin is that their anonymity can provide a convenient cloak for criminal activity. Part is technological — this is a cool idea. And part is speculative — gamblers bet that bitcoin's value will increase,' concludes Hadas. 'Truly private money is an inferior alternative to the money that comes with the backing of a political authority. After all, no bank or bitcoin-emitter can be as public-minded as a government, and no private power can raise taxes or pass laws to unwind monetary excesses.'" Could be there's something good about money that can't be manipulated by law. Some people at least think there's plenty of value in Bitcoin and similar currencies, despite the risks. And those risks at present probably aren't enough to comfort the unfortunate Welsh fellow who (HT to reader judgecorp) "has realised he threw out a hard drive containing 7500 bitcoins, worth £4 million at today's prices. It is now under four feet of garbage in a landfill site the size of a football pitch."

Comment: Re:If you don't like it (Score 1) 127

by supertrooper (#45205985) Attached to: Bell Canada To Collect User Data For Advertising
I have cable internet with Distributel (over Rogers network) and last year I had an outage that lasted around 2 weeks. It was exactly like that. Rogers didn't give a crap about fixing the problem. They do this on purpose, which actually makes me hate them even more. Same with Bell Canada. I hate these companies. They received government subsidies from our sweet tax dollars to build their infrastructure. Now they are simply robbing Canadians with their high service fees and crappy service. As long as I have the choice I will never give them money.

Comment: Re:Elon Musk... (Score 5, Insightful) 253

by supertrooper (#44509949) Attached to: Elon Musk Admits He Is Too Busy To Build Hyperloop

Not really, being a douche is a full time job. Hence why he's so busy.

Why is he a douche? Because he's successful and he actually got there by not screwing over millions of people? You can say anything about PayPal but it's a service you can choose not to use. I wish he found a time to do this thing. Safe and fast travel, and I think cheaper too. It would be a great competition for aviation industry. In any case, nothing but respect for this guy.

Comment: Re:When do we return to real tech? (Score 1) 138

by supertrooper (#43362661) Attached to: Facebook Launches "Home" For Android
To be honest I like what Google has done in the last 15 years: 1. Google search: there were search engines before Google, but how caching and indexing works, and relevance of the results is pretty amazing to me 2. Maps: there were other map products but Google has done a great job to make maps more responsive and easier to use 3. Email: remember when hotmail was giving you about 10 MB of space, and then Google gave you 1 GB This is just to mention a few. I am aware that Google might be the next big threat to everyone's privacy but the technology they came up with is just incredible.

Life is difficult because it is non-linear.