2 votes

Questions about bitcoins. Thanks for taking the time to answer.

I'm a little late when it comes to Bitcoins but how does the community feel? What are the recommendations from notable Austrian Economists – is there a general consensus among them? Is using and investing in bitcoin safer than other fiat currencies like the dollar, yet still inferior to a commodity backed currency? Would it be possible to tie ones actual gold/silver supply to their supply of bit coins so that that their bitcoins not only increase in purchasing power but remain more stable (kind of like a bitcoin 2.0 if you back it with gold or silver). Ron Paul in the past has always supported a decentralized, free market currency which bitcoin appears to be, but at the same time bitcoin isn't backed by anything (like metals) so I am left confused.

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They were almost $96 today

They were almost $96 today and they've since tanked to less than $78.

Please come join my forum if you're not a trendy and agree with my points of view.

Bob Wenzel

In answer to whether Austrians recommend Bitcoins, Bob Wenzel has now recommended putting 1% into Bitcoins purely as an upside play. If they do ever become considered money (they are not now, not until every day people price things in Bitcoins without double listing with a $ price) and become widely used, the price could skyrocket into the thousands per Bitcoin

*Advancing the Ideas of Liberty Daily*

Not too late

Disclaimer: I used to be very excited about Bitcoins, but the current prices are way too high, IMO.

I'm a little late when it comes to Bitcoins...

Too late to buy them for one penny each, but you can buy a few and/or start a Bitcoin related website.

Is using and investing in bitcoin safer...

The economy is growing and you can buy many things with Bitcoins.

Used to be extreme high risk/also offering extreme high reward.
IMO, unless they back off to around $30 or $40 (or less) then they are currently a terrible investment*
*Unless you are thinking long-term and/or have deep pockets and can buy now, more at ~$50, much more at $40, serious money** at $35 and below (for exapmle)

**Serious money LOL?
The largest exchange still suffers reputation problems from a horrendous hack over 2 years ago, and now through a partnership all the USA funds are being moved to American banks.

More convenient for some users, but now the USA Gov can attack the way they did Liberty Dollar (against the King Kong/centralized exchange not Bitcoin itself)

bitcoin isn't backed by anything...

Finally I can turn more positive. :)
Bitcoin is backed by the strongest (known) computer network in the world. Also, low transaction fees*** and ease of sending money Globally are a type of value which gold and silver cannot offer.

***low transaction fees: For sending and receiving BTC. Other transaction fees USD<>BTC are slowly getting better.

ps. Bitcoin is not literally a Ponzi scheme, but has some amazing similarities.

I'm still pro Bitcoin, but this year it is up from $13 to $79, so be careful!

Yikes it appears that there

Yikes it appears that there may be a bitcoin bubble. I know Lewrockwell seems pretty positive about bitcoins but other Austrians, not so much. I dunno the entire concept of digital currency is consfusing to me. I need to do more research.

My other post forgot to

My other post forgot to mention that Bitcoin is an amazing story, which is not going away soon. You might want to buy just one (?)

"I need to do more research."

Caution is good, even though there is a chance it will rocket higher.

"...the entire concept of digital currency is consfusing to me."

The security side of Bitcoin is very technical, but virtual currency is simple. WOW Gold and Second Life (Linden Dollars) are examples of centralized digital currency.

It's all play money (even paper USD) until people accept it as payment.

Not confusing when it's actually backed by a commodity

Thankfully, specie ain't bitwise.