Dan Kaminsky: Let’s Cut Through the Bitcoin Hype

http://www.wired.com/opinion/2013/05/lets-cut-through-the-bitcoin-hype/

> An unregulated resource is behaving wildly. This is what unregulated 
> resources do, in every network imaginable. With Bitcoin, the supply of this 
> awesome thing completely ignores the demand for it.
> 
> And yet it’s not going away. It could have. There have been a couple of major 
> crashes. But the value has never hit zero, because as William Gibson wrote 
> decades ago, the street finds a use for things.
> 
> People keep trying to describe bitcoin as an amazing store of value. Perhaps 
> it is. But its real value proposition is as a medium for  transfer.

....

> At least, that’s the theory. Reality is more complicated. Of all the millions 
> of dollars of purloined bitcoin that’s floating around out there, not one 
> Satoshi of it has been spent. That’s because while most other stolen property 
> becomes relatively indistinguishable from its legitimate brethren, everybody 
> knows the identity of this particular stolen wealth, and can track it until 
> the end of time.

.....

> Nothing made by humans is ever free of politics or even error.
> 
> Not even math, and certainly not Bitcoin. It’s not merely that Bitcoin must 
> interact with the messy real world, and absorb its faults  and foibles. 
> Currencies do not naturally maintain fairly stable valuations. Their rate of 
> change is absolutely manipulated over time.

.....

> The euro is a much bigger deal than bitcoin is going to be on any reasonable 
> timescale. But governments are keeping an eye on it, because you know, that 
> internet thing eventually did become significant.




-- 
Kim Holburn
IT Network & Security Consultant
T: +61 2 61402408  M: +61 404072753
mailto:[email protected]  aim://kimholburn
skype://kholburn - PGP Public Key on request 




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