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.
|On That One Coin Worth a Trillion Dollars|
|How Much it Costs to Be Batman|
|Deficits of Mass Destruction|
|A Judge Stands up to Wall Street|
|How We Think About the Economy is What Made It Fail|
|There Are Plastic Islands in the Pacific Ocean You Can Walk On|
|Renouncing U.S. Citizenship Fees Quadrupled|
|Children Are Learning that Siri, Not Their Parents, Is Most Readily Available to Answer Their Questions|
|Toronto's Fan Expo Canada|
|For Back-to-School Teenagers, a New Phone Better Than New Clothes|
|The Psychological Impact on the Daily Exposure to Bad News Reported by the Media|
|Writing Ivy League Admission Essays for Wealthy Chinese|
|Somebody: Half-App, Half-Human|
|Russians Want to Know if They Are at War|
|"Why fertilising the ocean with iron is not such a crazy idea."|
|How Not to Buy a 3D Printer|
|Live Map of the War in Ukraine|
|"One thing sits at the heart of what many consider a surveillance state within the US today."|
|Why Guys Don't Call...|
|Graph Illustrates the Typical American Workday|