Thoughts on Bitcoin

Exchange with JF:
JF: From Bloomberg - Why I Invested in Bitcoin...by Chamath Palihapitaya

WCV: I don't buy it, and strangely I find myself using the same arguments people make against gold.

JF: Ha, that’s kind of why I thought it was interesting

WCV: The thing is gold, silver, platinum, etc. are a very limited number of precious metals.

But what's to stop 100 or 1000 or 1,000,000 computer programmers from creating new electronic currencies out of thin air?

In that respect, Bitcoins are a lot more like fiat currencies.

JF: Right I agree. The matrix reference I didn’t think helped his argument. He could have started the Op ed off my saying “hi my name is XXXXXXX, and I have so much F U money I have decided to give Bitcoin a ride”
And that's all I have to say about that.

1 comment:

gabriel said...

Sure, one could create new currencies. But they would have to have features which make existing currencies obsolete in order to be adopted. Innovations like those Bitcoin introduced don't come around very often, so your argument doesn't hold much validity.

Happy Super Tuesday!