I’m drafting a post on bitcoin and my thoughts on it. However the recent crash and halt to trading on MtGox has forced me to comment before my post is complete.
First the links.
Natural News – Conclusion: Bitcoin is a failed currency experiment; not ready for prime time
Market-Ticker – Destruction of BitCon-Accepting Businesses
The Daily Bell – On Bitcoin and Bubbles
There are more however those three should be sufficient to see the point. The last one – On Bitcoin and Bubbles, I will take apart in my later post, suffice it to say that here is yet another person who has made no effort to actually understand bitcoin from a fundamental or technical perceptive. Let alone try to use it like myself. I opened a free bitcoin wallet and they gave me .01 bitcoin, which was perfect for me to test it out. No need for heavy investments here to get a deep understanding of how bitcoin operates. But I digress.
Since the crash and subsequent halting of trading on MtGox (MtGox is not Bitcoin!!!! Though at this time they are very important to the currency itself.) All the naysayers are coming out with there “See I told you so” fingers. To them I say, go stick that finger where the sun don’t shine!!!
First of all, the people who are bitching the most are the very ones who espouse to be either Libertarian, anti-Federal Reserve, anti-Wall Street, anti-Corporatists, anti-crony Capitalist, and pro Free Markets. Yet when given the single most important development in currency since the dawn of gold as money, instead of jumping in and trying to figure out how to 1) make it work 2) advance the idea, awareness, and knowledge of Bitcoin, and 3) take even the rudimentary steps that I did to personally understand it, they would rather cling to their rhetoric than live up to it.
I have a lot of respect for Karl Denninger, but for someone who espouses to be a libertarian to even make the arguments that taxes and regulation are really what legitimizes a currency (I’m paraphrasing) should be slapped upside the head with a hard bound copy of Atlas Shrugged, then hit again with the hard bound scholars edition of Human Action, followed by the hardbound volumes of the collective works of Rothbard who was a real Libertarian.
This is the free market at it’s finest. Bubbles happen. The question is, do you have balls enough to put your money where your mouth is? Or do you just want to sit around selling subscriptions to newsletters and hocking gold and silver sales, while looking like your doing something? There is going to be problems like DDoS attacks, and exploits in the protocol. But those are just the growing pains.
In fact it was because people’s gold and silver were not exactly safe tucked away under their mattress that gave rise to the fractional reserve banking system lo those hundreds of years ago. People are going to have their bitcoins stolen as exploits are introduced into the system. It’s a fact. If they had no value then there would be no risk. But unlike other monies, this one you will not need to take your money out of your control in order for it to be safe(er). Rather the protocol get’s patched as the problem is dealt with and everyone who uses the system benefits.
Damit I am tired of so many people out there who simply want to whine and complain and not actually do a dam thing about it. Bitcoin and other cryptocurrencies like litecoin, are not the problem, they are the solution. If you don’t think so, fine. Don’t use it. Critique it and make people aware of REAL problems with it. Not sophomoric, rationalizations that don’t even apply.
I’m going to repeat this one more time – THIS IS THE FREE MARKET! PUT YOUR BIG GIRL PANTIES ON!