[LINK] BitCoin DDoS and/or Wallet-Hack

[Karl Auer]

On Thu, 2013-04-18 at 23:07 +0930, Glen Turner wrote:
> If you think about it from a monetary economist's point of view, it is
> inability to readily create new bitcoins which prevents effective
> management of the money supply. Since bitcoins only work if they are
> difficult to create then they can't be managed like a currency is, and
> thus they'll always be prone to rapid inflation and deflation.

The parallels with gold as a currency are unavoidable.

Why did Governments dissociate from gold? All the same reasons they will
not like bitcoins. Gold is untraceable, in limited supply, takes hard
work and time to extract, is unforgeable (well, pretty much), is easily
transported, globally the same.... OK, there are some obvious
differences, but the similarities are far greater than the
dissimilarities.

> In short: bitcoins aren't a currency, they are a barter good. Calling them "coins" is misleading.

Only in the same way that gold isn't a currency - and we have cold
coins :-)

And what do people turn to, even today, in times of crisis or distrust?
Gold.

I think the critical, overwhelming disadvantage of bitcoins is that they
require an enormous pyramid of high-tech to use. Come the crash - gone.

Regards, K.

-- 
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Karl Auer (kauer at biplane.com.au)
http://www.biplane.com.au/kauer
http://twitter.com/kauer389

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