

Bitcoin's Dystopian Future (April 2013) - kunle
http://lifeboat.com/blog/2013/04/bitcoins-dystopian-future

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minimax
To me the most impressive thing about bitcoin is its ability to turn otherwise
unassuming computer enthusiasts into genuine experts in macroeconomic
forecasting without having to pick up a single book. Is there anything crypto
currencies _can 't_ do?

~~~
annepaula
Thank you! I checked out this guy's credentials... he's just a run of the mill
programmer with no special skills or education. He thinks he can predict the
future of the world based on his amateur hour speculation.

I'm only ankle deep in subjects like macroeconomics, political science, and
sociology, and even I am groaning at the newbie mistakes he makes in his
analysis. This guy just flat out doesn't know what he's talking about. He has
an audience because his audience is other people who are equally as
uninformed.

There is a place where experts discuss these kinds of questions and it's not
on blogs. I don't have enough disrespect for my time to bother refuting him
(the supply of worthless bloggers is infinite--impossible to make a dent in
the endless ignorance) but if anyone wants to be informed on these questions
they should start with macroecon 101 and should be learning from specialists,
not hobbyists.

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melloclello
Have either of you considered that all the people who think bitcoin is
wonderful are those who stand to make the most from them?

~~~
minimax
I assume that most hardcore bitcoin enthusiasts are morons but I guess there's
a possibility that some legitimately evil early bitcoin adopters out there
pushing bitcoin so that they can sell out of their positions at favorable
prices.

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waps
That's actually what's making bitcoin successful. Never underestimate what
large amounts of morons can do.

There's a name for what happens if someone finds a way to use large amounts of
people to act in their interest but against the public interest. It's called a
"Nash equilibrium", and it's unstoppable.

This is the point the article seems to be making.

~~~
promptcritical
That's not a Nash equilibrium. What you're describing is called the "Tragedy
of the Commons."

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melloclello
> I don’t invest in bitcoin because I think it will bring about a happy
> utopian world. Quite the opposite. I invest in bitcoin because the rise of
> distributed currency is inevitable, and owning some bitcoins seems to be the
> best way to prepare for the chaos ahead.

When the ice caps are melting, walk uphill.

I also like the 'TorSlaver' scenario he paints, it's a good bit of
scaremongering[1]. It is probably not unwarranted however, as the more people
who respect the terrifying power bitcoin holds, the better.

> At some point, we collectively with our governments face a difficult choice
> between trying to survive this deadly storm or attempting to destroy all
> decentralized computer networks (including the internet). The former seems
> unthinkable, the latter, impossible.

I would say it's not impossible to shut down the existing internet, but you'd
have to replace it with something else[2] in order to avoid complete
socioeconomic collapse.

[1]
[http://www.youtube.com/watch?v=Qh2sWSVRrmo](http://www.youtube.com/watch?v=Qh2sWSVRrmo)

[2] [http://urbit.org/](http://urbit.org/)

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humbledrone
Why does this guy think that Bitcoin can't be taxed? It's not like the
government has magical dollar taxing beams. My employer would be in a terrible
legal situation if they did not withhold taxes from my income, and I would be
in a similarly bad situation if I knowingly did not pay my taxes. Really,
nothing should have to change if my income is in Bitcoins -- my employer will
withold, and I will file taxes every year.

~~~
ryanthejuggler
Agreed... back before electronic transactions were a thing, cash was about as
untraceable as bitcoin, and taxation was still effective.

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DennisP
There are several things government could still tax. One is real estate.
Another is carbon emissions, which you tax at major sources like coal mines,
which pass on the cost to everyone else.

Both these options have been advocated by various people for reasons unrelated
to bitcoin. The climate benefit is obvious (and may help make up for bitcoin's
energy expenditure). Georgists and geolibertarians argue that converting to
land taxes would have all sorts of benefits.

