Message between a Mongrel in NZ and a Hybrid in Hong Kong - both traders, hoarders and hopers. Here is a financial relativity theory report for this year. Mobile Cyberspace aka QCOM, which is the aether for bitcoin, Google, Facebook, eBay, Twitter, Yahoo!, compared with the GLD Aztec temporal realm of atavistic Au "In Gold We Trust". au.finance.yahoo.com
Here is a graph of bitcoin over the last year, and some commentary about bitcoin compared with Segway.
theatlantic.com Bitcoin does seem to be designed inefficiently in that like gold, it's made of oil. That is, it takes more and more energy to mine a bitcoin. The only economic producers of bitcoins are now people with cheap electricity supplies and super-duper computers which can beat others to the right strings of 0s and 1s.
If the hot air those computers generate can be used somewhere useful, such as Finland in winter, then it could be worthwhile producing that heat. But even in Finland, a heat pump might be more economic to provide heat than using the electricity as a resistor heater.
I don't buy the criticism of bitcoin as being a ponzi scheme, though it does reward those who get in early, thereby creating the network effect which is the fundamental value of bitcoin as per Metcalfe's law. en.wikipedia.org Perhaps the rewards are skewed too greatly to the early adopters for bitcoin to be acceptable in the long run, but anyone can get in the game any time they like, so it's a free choice to back it or not. Those who take the risks get the rewards. Those who don't, don't.
Mqurice |
