The story that Bitcoin victims are being sold is that, because we cannot trust government-issued currencies.
This is complete nonsense. Yes, the price of Bitcoin may yet double or even quadruple — because its price is based on pure speculation, and these stories are feeding such speculation. But Bitcoin’s market price is almost certain at some point to crash and burn, just as the dot-coms did, and for the same reason: because it is all hype. And there will be no one to turn to when it does, because no government or bank is backing it up; and the people who are hyping Bitcoin will have cashed out and be long gone.
Bitcoin was invented by an unknown person or group to be a digital currency…Such a system makes it difficult for governments to know the identities of people exchanging money, so it has become a haven for money laundering, drug dealing, and corruption. Beyond its usability for crime, Bitcoin has major design flaws.
With Bitcoin supply constrained and increasingly falling short of demand, instead of functioning as a currency, Bitcoin is a speculative empty asset.
First, anyone who has access to a Bitcoin password (or private key) has the authority to spend the Bitcoins it unlocks; loss of the password means loss of all of the associated Bitcoins, with no recourse. Second, linear growth in the chain of blocks that make up Bitcoin is resulting in exponential growth in the computation necessary to process and verify transactions: transactions that used to take 10 minutes now take hours. Third, with Bitcoin transactions fees hovering above $25, a $5 payment now costs $30. This obviously is not a workable digital currency.
Eulogy made by Vivek Wadhwa
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