4 Comments

  1. Ed K

    Bitcoins are Comrade Lenin’s way…

    Lenin’s Take On Bitcoins
    By John Chapman

    “For gold to be fully divorced from monetary and trade arrangements
    for the first time in 2,500 years of human civilization would be a sure
    sign of the end of capitalism: Lenin knew that a fiat currency was a
    necessary and sufficient tool for eventual political control of any
    economy.”

    http://www.realclearmarkets.com/articles/2009/09/11/lenins_take_on_current_events_97403.html

    Reply
  2. Ed K

    In a fire gold will melt but remain.
    The underlying value is still there by weight of metal.

    So how do you get your value if your computer burns?

    Bitcoins are artificial, not real value? Maybe not under
    Government control, but what prevents crooks from
    conniving a scheme? What prevents a computer
    lizard Burney Madoff? Have you ever heard of hackers?

    What are universal safeguards? Bitcoins “defy government
    control even more effectively than gold.”

    Melted gold still has the value of that weight of gold…
    Standard coins or bars just makes totting easier…
    How do you tote Bitcoins without electronic device?

    Gold coins can be carried by camel, canoe or anybody,
    how do you carry Bitcoins? How do you carry Bitcoins in
    an emergency without electricity?

    What is underlying value? What is value that cannot
    be manipulated by another man? or by government?

    An algorithm is man made. Another man can make
    another algorithm just to prove he can. Many hackers
    hack for that reason alone.

    Others might hack just to steal your Bitcoins, yes?

    Reply
    1. Roman

      > So how do you get your value if your computer burns?

      You keep backups of your keys.

      > Bitcoins are artificial, not real value?

      I understand people’s skepticism. I shared it, once. But the market decides what is valuable, and the market seems to be choosing bitcoin. I will be elaborating on this point next month at the 2013 Property and Freedom Society Conference.

      > Government control, but what prevents crooks from conniving a scheme?

      It’s still possible, I suppose, but unlikely. The code is ‘open source’. That means the instructions are readable to any programmer in the world. There are no secrets. Updates to the software are heavily debated and voluntarily adopted.

      > What prevents a computer lizard Burney Madoff? Have you ever heard of hackers?

      Coins have been stolen by people who stole private keys from another person’s computer. So it is a concern, but the protocol itself hasn’t been compromised.

      > What are universal safeguards? Bitcoins “defy government
      control even more effectively than gold.”

      Math. (It’s much more reliable than government.)

      > How do you tote Bitcoins without electronic device?

      You can keep your private keys stored on a piece of paper, but you’ll eventually need an electronic device to use those keys to recover your bitcoins.

      > how do you carry Bitcoins?

      Most people keep them on their computer or on their phone. You can also keep them on a piece of paper and recover them at a later date.

      > How do you carry Bitcoins in an emergency without electricity?

      You can’t use them without electricity. I’d add two things 1) without electricity, the banking system would also shut down. 2) In parts of Africa, including Kenya, most banking happens via mobile phone.

      > What is underlying value?

      I think its value lies in the sevice it provides. It’s both a money and a payment system. You can send your money to anyone without permission.

      > What is value that cannot be manipulated by another man? or by government?

      Bitcoin cannot be manipulted in the way that everything else is. You can’t really sell imaginary bitcoins the way imaginary gold seems to get sold every now and then to spike the price.

      > Others might hack just to steal your Bitcoins, yes?

      Yes. It’d be similar to stealing a file from your computer.

      Reply

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