

Bitcoin: Whatever It Is, It's Not Money - caffeinewriter
http://www.forbes.com/sites/steveforbes/2013/04/16/bitcoin-whatever-it-is-its-not-money/

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ryanthejuggler
I think a point that the authors of a lot of these "Bitcoin is doomed/not a
currency/etc." articles miss is that they're trying to compare a brand-new
thing that's still trying to find its place in the world to the dollar, for
example, which has been around for hundreds of years. Plus, don't forget, the
dollar has undergone fluctuations in value; these fluctuations though are the
results of the decisions of a central body. Finally, Forbes seems to be
sidestepping the fact that the term "currency speculation" exists for a
reason.

Ultimately, Bitcoin's utility rests on whether its value settles down at some
point, which I think it will[1]. Then people can actually use it as a currency
instead of an investment, as it was intended.

[1] please note that I have no background in economics!

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zck
>Money is most optimal when it is fixed in value just as commerce is
facilitated when we have fixed weights and measures. When you buy a pound of
hamburger you expect to get 16 ounces of meat.

But you don't pay for a pound of hamburger with 16 ounces of meat; you pay for
a pound of hamburger with _dollars_. The dollars/hamburger ratio floats.

And unless I misunderstand something^0, money isn't fixed in value; its value
just happens to not change all that much, under normal circumstances. Most
money is inflating; it's worth slightly less each year. This isn't a fixed
value.

And I agree that, yes, Bitcoin's volatility does make it less attractive to
users. But that volatility isn't an inherent property of Bitcoin, but merely
an effect of it being small and growing. If, in five years, the Bitcoin
economy continues to grow, and there's less volatility^1, will that make Steve
Forbes happy?

[0] Which is a near certainty.

[1] The Bitcoin economy growing might be a direct result of decreased
volatility; that isn't the point under discussion here.

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midnitewarrior
"We don’t really know how this coin is created."

It's easier to understand than how a dollar is created under the fractional
reserve banking system.

Oh look! The capitalist establishment is spreading FUD about Bitcoin -- didn't
see that one coming!

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michaelwww
"We don’t really know how this coin is created."

"I don't really understand how this coin is created"

\- FTFY

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evv
Exactly. One of the biggest advantages of BitCoin is that the consumers of the
currency can understand exactly how and when new money enters the system. That
would be a significant improvement over existing currencies.

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jjs
Given the dollar's recent volatility in terms of Bitcoins, I hardly see how
Forbes can argue that it has a fixed value...

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michaelwww
And he likes gold, which just crashed "After Gold Crash, Experts Point to
Central Bank Manipulation - The New American"

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caffeinewriter
Hehe, I find it interesting that Steven Forbes himself decided to comment on
Bitcoin. Albeit, he only has a shallow understanding of it. The whole point of
it being open source, is so that everyone has a say in it, not just one
central entity, which he either doesn't get, or doesn't want.

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chadlpowell
"So it is no surprise that as the Fed readies another round of money printing,
more and more Amercians want to experiment with alternative currencies. Hence
the intense interest in the digital phenomenon called the Bitcoin."

Get real, Steven.

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generalseven
TL/DR: Chairman of Forbes gives his two cents on Bitcoin which boils down to
"It's new. I don't understand it."

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generalseven
Bitcoin is experimental and behaves in ways that money has never done before.

