Bitcoin is a Bitcon by Karl DenningerSubmitted by SteveMT on Sun, 03/31/2013 - 14:04
A large article, but worth reading if you are considering Bitcoin and are interested in an alternative perspective.
by Karl Denninger - Posted: 2013-03-30 17:44
Ok, I've been asked enough times, here it is -- my view and analysis of "Bitcoin", which I have taken to calling "Bitcon." That probably deserves an explanation....
Let's first define what an ideal currency would be. Currency serves two purposes; it allows me to express a preference for one good or service over another, and it allows me to express time preference (that is, when I acquire or consume a good or service.)
Unfortunately Bitcoin, as I will explain in detail, also does a*****-poor job of satisfying either of these requirements.
But before I get to that, I want to first demolish the argument for using it that is going around in various circles and media these days -- the idea that it is stateless (that is, without a State Sponsor) and this is somehow good, in that it allows the user to evade the tentacles of the State.
This is utterly false and, if you're foolish enough to believe it and are big enough to be worth making an example of you will eventually wind up in prison -- with certainty.