Why not BitCoin?

BitCoins are cryptographically allocated and tracked via a profoundly energy-expensive process that favors the creation of new money only to those who have the technological skills to manage large compute farms. BitCoin is the money of a technocracy that denies the ability to create new money to the majority of the economy’s participants. If you’re poor, you don’t get to participate.

However, their value has no basis in reality, only via their perception.  BitCoin-bugs are fascinated with deflation and believe that the currency’s limited supply (about 21-million coins) will have to be subdivided into ever smaller quantities to make it a workable money.  The early adopters mined thousands of BitCoins before it was hyped—and since the system is designed to make all mining progressively harder the more people try to mine them, they’re essentially hoping that you’ll be foolish enough to trade them fiat-money for BitCoins and cash out before the bubble bursts.

 

 

2 thoughts on “Why not BitCoin?

  1. Nobody knows yet. I would be interested what you think about Freicoin, the Bitcoin clone with a built-in demurrage. Could it work? What do you consider the mayor flaws (maybe besides the waste of energy).

    Best regards, John Dego

    • Really don’t like demurrage as a concept as it feels too much like a kind of systemic property tax for people who are savers.

      Who’s to say what the Freicoin organization does 80% of the total money supply of Freicoins? That seems like a lot of power to concentrate in one place and will attract the wrong people to the organization should it be successful.

      YACoin ( http://www.yacoin.org/ ) is the latest alt-coin once I’ve seen so far that has made strides into fixing the distribution problem. It dynamically adjusts the sCrypt difficulty to really make it hard to mine with GPUs/ASICs. There was only one possible “mining bubble” at the lower difficulties which has already passed. It also incorporates proof-of-stake which seems to be a better long-term strategy for a crypto-coin—I expect that BitCoin will collapse when mining profitability ends and transaction fees skyrocket for all users, or it will merely become the preferred choice of large value transfers only, which unfortunately simplifies traffic analysis.

      When YAcoin + ZeroCoin ( http://zerocoin.org/ ) mate and make a YAZCoin, the market should jump on that as being one of the better solutions for a long-term daily use crypto-currency.

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