Pethokoukis

Why Bitcoin isn’t libertarian

Ouch! Martin Hutchinson:

The Mt. Gox fiasco indicated both the economic and philosophical disadvantages of Bitcoin. Economically, it must be an iron law of computer programming that any program which can be written can be hacked, and hence there is no completely secure store of value in cyberspace. Furthermore the barriers to entry for new cryptocurrencies are laughably low, so there are now more than 60 such items, each sucking up some of the potential support for Bitcoin. In spite of the best endeavors of Bitcoin’s creators, the supply of Bitcoin is not truly limited, holdings of Bitcoin are not truly secure and since the currency is as attractive to scam artists as to anyone, it will inevitably attract scams, at least so long as it appears to represent substantial value.

Bad luck, Millennials. Your new and clever scheme to replicate the old-fashioned virtues of gold in the cybersphere appears to have fallen apart. Like other Millennial enthusiasms, such as Edward Snowden and Wikileaks, your “libertarian” creation has turned out not to increase liberty and well-being at all, but simply to destabilize a gimcrack Baby-Boom-designed system that was already in deep trouble because old-fashioned virtues had been ignored for too long.

Follow James Pethokoukis on Twitter at @JimPethokoukis, and AEIdeas at @AEIdeas.

2 thoughts on “Why Bitcoin isn’t libertarian

  1. Bitcoin is not a currency. It is the Emperor’s New Clothes of currencies. It is the internet version of monopoly money. I can’t understand how people would put real money into a fake “currency.” Trading in Bitcoins is more like commodity trading, but with something that doesn’t exist. It is the Dungeons and Dragons of currencies.

    If I printed out 21MM sheet of paper call BM Notes, why would anyone think they should be worth $500 each.

    If you put money in this you are a moron.

    BTW making any comparison between Bitcoin and Edward Snowden or Wikileaks is also moronic.

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