This article is about how money interacts with the rest of the economy after it has matured and about how mismanagement by an issuer can cause it to fail.
If it became easier for people to trade different forks of the same currency, then investors could get direct experience with different ideas without endangering the network.
If someone says “blockchain tech” to you, you might as well walk away right there. They’re just trying to sell you on their new decentralized crowdfunded blockchain tech internet of bitthings appscam.
I fully support the attacker’s actions, and I wish I had thought of it first.
Bitcoin upgrades must be a clear improvement to Bitcoin as an investment or else they face a sharp uphill battle to adoption.
Bitcoin has the right properties for the world’s money, and the more the world comes to terms with this, the more stable it will become.
Bitcoin makes conspiratorial group cohesion more difficult. If the Fappening took place as I described, then this effect is right at the center. The possibility of getting bitcoins by releasing secrets caused the group to fall apart.
The difference between Bitcoin and a Ponzi scheme is that in a Ponzi scheme, the early adopters benefit by cashing out. With Bitcoin, there is no reason ever to cash out.
Krugman’s article and Gobry’s follow-up are confused, do not establish their case, and say nothing about Bitcoin.
Working in the Bitcoin world is like working for a drug addict with bipolar disorder.
There are two ideologies in the Bitcoin world. They are not political ideologies; they are different visions of Bitcoin’s place in the world and how adoption will happen.
All Bitcoin entrepreneurs today build on top of the success of the Silk Road. Their work was made possible by his.
Potential Bitcoin attackers are in a Prisoner's Dilemma. In the same way that the people cannot easily rebel against the king owing to a lack of coordination on their part, governments cannot rebel against Bitcoin for the same reason. The government puts the people in a Prisoner's Dilemma against one another, and Bitcoin does the same to government agents.
There is a fundamental agency problem with Bitcoin: agents can disappear or simulate a heist upon themselves. They cannot rationally be trusted without extreme costs being imposed on them which are more stringent than traditional banks.
Appcoins are a terrible idea.
Don't be a venture capitalist—be a speculative philanthropist.
Someone still lost in the dollar world looks at Bitcoin and sees wild and extreme volatility, whereas someone in Bitcoin looking back at the dollar sees the worst and longest economic crash in history.
The difference between money and a bubble is that a commodity whose price is a bubble actually has some underlying value.
Does Bitcoin need to be sanitized and separated from its anarchist, black-market roots in order to become acceptable to the general population? Absolutely not!
Government currencies will rapidly lose value as Bitcoin supplants it. What will such an event be like and how can it be understood economically?
What falleth, that shall one also push!
The best way to improve Bitcoin’s image is simply to improve the Bitcoin economy.
The real hero is the hoarder.
For now at least, Bitcoin’s present trend is self-reinforcing with no equilibrium in sight.
Those who worry about Bitcoin’s volatility fail to understand what it actually means for Bitcoin.
No one should ever use Mastercoin under any circumstances or appraise their value as anything above zero.
In short, the altcoin phenomenon is the product of greed and bounded rationality.
Once it was known that bitcoin could be sold, even for a pittance, new possibilities opened up.
Proof-of-work should not be seen as a mysterious or wasteful system, but as something functional, natural, and potentially of value for the design of any communication protocol.
Stay one step ahead of the government and don’t get embroiled in politics.
If Bitcoin becomes money, the government’s control of money will have ended.
Public-key cryptography is the greatest tool of liberty ever devised.
With cryptography, one libertarian inventor can create an entire libertarian society.