Date:   4/8/2013 2:13:27 PM ( 11 y ago)
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URL:   https://www.curezone.org/forums/fm.asp?i=2053160

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Jesse at Cafe Americain recently commented on bitcoin as well:

"As an aside, people ask me now and then to comment on Bitcoin. I did look into it quite intensively over the Christmas holiday and was aware of it before then.

The good news for Bitcoin is that is does have 'a flywheel' in the fairly transparent algorithm that expands the money supply in a reasonable predictive manner. And from a technology standpoint it does have a coolness factor.

The Achilles heel is its inherent instability because of the manner in which it is sustained and exchanged. The exchanges are a serious weakness because they are unregulated, opaque, and privately owned. They rely heavily on the efficient markets hypothesis and on a few other articles of faith.

Liquidity and stability is the name of the game for money: use and store of value.

It is almost predictable that the Bitcoin currency will have speculative booms and busts, because it has the nature of a Ponzi scheme with the greatest gains going to early adopters and promoters.

It does have its good points, but I am afraid I would defer on it unless a number of sovereigns were to adopt it and guarantee liquidity and exchangeability. Starting a new currency is not easily done. It must be based on something widely accepted and easily exchanged for a broad range of goods and services with a easily recognized unit of value.

But for now the early adopters and adherents do not wish to hear this, very much in the manner of an early stage Ponzi scheme. You'll miss out, better get aboard, you're losing money!

Money is a funny thing. So few people understand it. It often takes on the nature of a belief system, a religion. I recall the very heated and passionate inflation/deflation debates of not so long ago.

Welcome to the fog of currency war."

http://jessescrossroadscafe.blogspot.com/2013/03/currency-wars-global-sustain...


in other words, a potential theives' playground...
 

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