2013-10-17 Pymnts: Bitcoin Is A Remarkable Innovation, Here’s Why It Will Fail

[Arvicco]

http://www.pymnts.com/briefing-room/issuers/virtual-currency/2013/Bitcoin-Is-A-Remarkable-Innovation-Here-s-Why-It-Will-Fail/

Yet another "The All-powerful Government will surely squash this pathetic little pest!" article. Excerpts:

Governments will—and I think sooner rather than later—realize that bitcoin is to cash what crack is to marijuana – a more potent and addictive drug. Exactly because bitcoin has done such an exceptional job of replicating the critical features of cash—anonymity and irrevocability—it has become a much more potent method for engaging in tax evasion, various illegal activities and terrorism than cash ever was. Bitcoins have all those exceptional features of cash but can also be zapped instantaneously across the globe from criminal to criminal...

Governments aren’t going to allow this to happen. Nor should they. While the libertarian streak in me makes me sympathetic to bitcoin’s objectives, the fact of the matter is that bitcoin, if it is allowed to continue and grow, will promote a massive global expansion of very bad stuff: from child pornography to hard drugs to terrorism to contract killings. We may be willing to wink and nod about people that shave their taxes by taking their pay in cash. But there’s no reason we should countenance an “innovation” that sharply reduces the transactions costs of engaging in activities that virtually all of us agree are bad if not horrible...

In theory, bitcoin could become a lawful virtual currency if the bitcoin community gave up anonymity and therefore incorporated the identities of bitcoin senders and receivers as part of the currency. But that would eliminate the cash-like feature that makes bitcoin attractive and vastly decrease the demand for bitcoin. That does not seem like a viable path forward...

While I praise the sheer ingenuity of bitcoin and its payments innovation, it should be buried.

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[Birdy]

TL;DR: Bitcoin is cash 2.0 and great, but it will fail, because government doesn't like cash anymore (terrorism, drugs, yadda yadda) and will ban it.

[aigeezer]

From the article: "While I praise the sheer ingenuity of bitcoin and its payments innovation, it should be buried."

What's his agenda, I wondered. A quick search yields: "PYMNTS.com is brought to you by 1st in Media, LCC, a joint venture between two leaders in the online media and payments space: Business Wire and Market Platform Dynamics. Business Wire, a wholly owned subsidiary of Berkshire Hathaway, is the global market leader in commercial news and disclosure distribution. Thousands of member companies and organizations depend on Business Wire's comprehensive network to transmit their full-text press releases, regulatory filings, photos, and other multimedia content to journalists, professionals, investor services, regulatory authorities, and the general public worldwide."

http://www.pymnts.com/home/about-us/

Gotta go shower, brb.

[Arvicco]

...Business Wire, a wholly owned subsidiary of Berkshire Hathaway

Hmm, Charlie Munger acting on his now famous "Bitcoin is Rat poison!" pronouncement? In a way it is, for certain kind of rats burdening world economy with their ridiculous intermediary fees. Just wait till smart property contracts in Bitcoin protocol are unlocked. Suddenly, not just banks but a whole bunch of finance-related industries, including Munger's beloved (re-)insurance, will be at risk.

[prophetx]

http://www.marketplatforms.com/experts/david-s-evans/

Smart guy, but I dont think he understands the technology and the cost implications of trying to regulate p2p communications or transactions...

[Akka]

Wow! There is some Guy pissed about Bitcoin in the comments:

Bitcoin is dazzlingly brilliant, yet fatally flawed at its cryptographic core (never mind use issues). The ‘state of the art’ crypto primitives it relies on have not been publicly compromised (although Edward Snowden said the NSA cracked them already, and keeps it very quite). True, or not -- these primitives have zero mathematical proof of utility, and it is a matter of how fast we discover the now hidden math insight to crack them. And when it happens -- all the money held by them is going ‘poof’ -- instantly. And no, the FDIC will not help you out. The NSA should treat Bitcoin like the FDA treats tobacco, mandating that every Bitcoin coin will be stamped with a: WARNING: This Money Form is Dangerous to Your Wealth -- its cryptographic structure is subject to a sudden collapse. The success of Bitcoin shows the hunger for its features, which are all wholesomely and safely delivered by BitMint, as I explain in my YouTube video: “Bitcoin to BitMint -- Alchemy to Chemistry”.

But hillarious. I saw this Bitmint already ~1 1/2 Years ago, due to a typo when I want access Bitmit.

Amazing it still exists: http://www.bitmint.com/

[NewLiberty]

They are just trying to talk it down so they can buy more.
Move along, nothing to see here.

[RodeoX]

Look at the website. A "payments" website? I wonder who funds that? 



No I don't.   

[alex_bronco]

He is not a fool, but it looks like he doesn't understand the technology and the cost implications of trying to regulate communications or transactions.