bitcoin

Bitcoin Goes OWS

bitcoinRegular readers know I appreciate Grant Williams and his TTMYGH newsletter, his most recent, War Games prompts me to think out loud about Bitcoin.

Mr. Williams makes no reference to Bitcoin, but I’m sure it’s sitting in the back of his mind, much like OWS was sitting in the back of Lloyd Blankfein’s mind last year. Grant presses the dangers of global currency wars and presents an enlightening Asian example of currency influence on GDP, competitivity, even the rise and fall of corporate ‘empires’. He links central bank profligacy, inflation, gold repatriation, and paints an ominous picture of our financial future. As usual it’s worth a read!

Bitcoin hit the mainstream media again this week when Bloomberg published, “Bitcoin’s Gains May Fuel Central Bank Concerns“. Zerohedge dutifully reacted with “Is The ECB Responsible For The Second Coming Of BitCoin?

 

What is Bitcoin? (from bitcoin.org)

Bitcoin is one of the first implementations of a concept called crypto-currency, which was first described in 1998 by Wei Dai on the cypherpunks mailing list. Building upon the notion that money is any object, or any sort of record, accepted as payment for goods and services and repayment of debts in a given country or socio-economic context, Bitcoin is designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities.

Bitcoin can also be visualized in dollar terms. In other words 1 bitcoin is worth about 19$. Here’s the Chart.

bitcoin-chart

Bitcoin seems a natural reaction to everything Mr. Williams eloquently writes about and everything Zerohedge rants about. Bitcoin, on the surface, appears to be a natural evolution and a ‘technical’ solution to currency manipulation and global central bankers largess. Bitcoin is a creative solution dreamed up by open-source technologists, trying to find a solution for an all too obvious problem.

What really peaks my curiosity is that I can buy cupcakes with Bitcoin. (here)

cupcake

We’ve lived through 2 decades of euphoric internet innovation.

Should Governments and/or Central Banks be surprised that creative and intelligent people work to resolve the obvious weaknesses in our current monetary system?