According to Eric Posner of Slate, the ever popular e-currency Bitcoin, a "secure, private, decentralized type of money that makes possible anonymous and virtually costless transactions across borders," is bound to fail as it is nothing more than an elaborate Ponzi scheme that contains "the seeds of its own destruction."
Bitcoin may be useful for certain types of transactions, especially illegal ones. But bitcoin?s defenders argue that the experiment has proved that a currency can come into existence and function without any government role, so designed as to make inflation impossible and bank transfer fees unnecessary. These features are supposed to make bitcoins irresistible for consumers. Meanwhile, stripped of the power to manipulate currencies to advance nefarious ends, governments will collapse, and we will live in an anarcho-utopia.
This is wrong, both theory and experience tell us. Bitcoin is not the first unregulated or private currency. Until central banks were invented in the 17th century, the money supply was unregulated even if governments did stamp coins. Other unregulated or private currencies have emerged from time to time?think of cigarettes in prison camps. Gold, silver, bank notes, and all kinds of other things have played similar roles.
|Forget Partisan Politics, Rejecting That $700 Billion Wall Street Bailout Was Smart|
|Income Inequality Seen From Space|
|Growthism: Capitalism for the Poor, Socialism for the Rich|
|Girl Sells Her Virginity for $780,000, Proceeds to go to Charity|
|In an Era of Mass Surveillance, Technology Companies are Responding to the Demands of their Customers|
|Connecting to a Public WiFi Makes Your Phone Vulnerable to Attack|
|Apple's Siri, an Autistic Boy's Best Friend|
|"Spouses now have easy access to an array of sophisticated spy software that would give Edward Snowden night sweats."|
|The Hobbit, in 72 Seconds, Done with LEGOs|
|U.S. Law Enforcement Does Not Want New Encryption Features on Apple's and Google's Smartphones|
|"As Ebola enters a deepening relationship with the human species, the question of how it is mutating has significance for every person on earth."|
|Crops Fed by Diluted Sea Water|
|"Why does consciousness, in any form, exist at all?"|
|How Million-Dollar Drones Land|
|"The people we elect aren’t the ones calling the shots."|
|Mexican Drug Cartels Are Far More Violent than ISIS|
|Picobrew Zymatic: Computer-Controlled Home-Brewery|
|Ebola Themed Etsy Products|
|Scientists Sceptical of Lockheed Martin's Promised Fusion Reactor|