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.
|Robinhood: $0 Commission Stock Brokerage|
|18 Brilliant Inventions Suppressed in the Name of Corporate Profiteering|
|Where Did YOUR Tax Dollars Go?|
|Can you get swine flu from a dollar bill?|
|Why Nobody Went to Jail During the Credit Crisis|
|IBM's Watson Saves the Life of Patient by Correctly Indentifying Her Disease|
|The Value of the Venezuelan Currency Depends All on One Man, in Alabama, Who Works at Home Depot|
|Be Seen and Unseen With Privacy Glasses|
|"Research suggests we aren’t ready to send astronauts to Mars for a visit, much less to live there."|
|"Imagine if you cut a person in half at the waist, the bottom half would grow a new head and the top half would grow new legs."|
|The Presence of Drones Becomes an Increasingly Pervasive Reality in the Skies of Tomorrow|
|Diamond Batteries Are Forever #diamondbattery|
|"Just like diseases, the symptoms of aging all have a solution."|
|"The very act of creating an environment fit for our survival will transform us into hyper-aware custodians." #TeamELON|
|"The way you use the phone is a proxy for the way you live."|
|"Twitter is way more important than you might realize."|
|The 2001 Authorization for the Use of Military Force, Explained|