Coins by Joe Shlabotnik
In the past, I have described my tendency to like distributed and decentralized systems. Recently, I cam across this new virtual currency called Bitcoin.
Bitcoin is a peer-to-peer electronic currency. It cannot be controlled by anyone. I believe this is its main strength. Most currencies available and used today are controlled by a small group of people that can create money at will. With such a great power, it is bound to be abused. It is abused. This is why Bitcoin has the potential to be a disruptive innovation.
Bitcoin also have many other interesting properties. You can make anonymous transactions between two parties without any third party involved. There is a theoretical maximum amount of bitcoins available on the market. Anyone can currently generate new bitcoins with a computer, energy and some patience. In a sense, it simulates the hard currencies like gold and silver. No single person can control gold. You can trade gold anonymously. There is a physical maximum amount of gold available on the market. Anyone can dig up gold with a shovel, energy and some patience.
When I started using Bitcoin, I was wondering how I could get some coins to spend. I found a person who gives bitcoins for free. I generated a few bitcoins with my CPU/GPU. I am now considering buying and selling bitcoins on various open bitcoin exchange systems. There is already a good and wide community surrounding it.
One of Bitcoin’s current weakness is its popularity. A currency is strong only when it is used by many people to engage in trade. Bitcoin is accepted by only a few companies. It is also only asked for by a few people as a mean to pay for their labour. In order to promote it, I have decided to accept donations in bitcoins and only in bitcoins. If you like this blog post, other content or product I created, please consider donating a few bitcoins to: 1BBhiGu5xX1qSHbHPcnw5UB3hMo9DcCmav . I hope you will get interested by Bitcoin.
Comments 11
Hmmm… perhaps Bitcoin will become as popular as Forex currency pairs and widely traded. After all, its all theoretical value anyway!
Posted 01 Feb 2011 at 9:24 am ¶Such currency can only create havoc, because it has no “real” value like say, gold, land, etc.
Peace,
Posted 02 Feb 2011 at 9:31 am ¶Rick
I agree. I am also concerned about the lack of real intrinsic value. However, the ease with which you can make a transaction with Bitcoin might compensate for that.
Posted 02 Feb 2011 at 7:43 pm ¶The few people who holds the massive power has abused the true purpose of currency. That’s true.
Posted 23 Feb 2011 at 6:40 am ¶Likewise, these people will never allow their “power” to be touched as well.
Human nature is pretty sad sometimes.
Digital as well as physical currencies are potentially unstable as they do not hold any true value. It is money based on faith in the government authority - fiat currencies or currencies of faith. The only true money that exists is precious metals - physical silver and gold coins.
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Posted 08 Mar 2011 at 12:30 pm ¶Very interesting post!
Posted 09 Mar 2011 at 2:04 pm ¶omg
Posted 13 Jun 2011 at 5:13 am ¶HHIS I shulod have thought of that!
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Posted 21 Jul 2011 at 6:35 am ¶sp8C1M jualpraeluoz
Posted 22 Jul 2011 at 6:23 am ¶Post a Comment