Tuesday, May 17, 2011

Bitcoins “The Most Dangerous Project We've Ever Seen”

I have heard of Bitcoin.  Tyler Cowen at Marginal Revolution (who I ht a lot) has had some pieces on it.  In his case, he sees some of the potential problems, but at least at its current stage, seems to feel it works better as a transaction method then as an asset class.  That you might make the transfer in bitcoins but would then want to immediately convert them into something more tangible (gold, swiss bank account, diamonds, etcetera).

Jason Calacanis is a lot more concerned:

Jason Calacanis, Launch, 15 May 2011 (ht NC)

A month ago I heard folks talking online about a virtual currency called bitcoin that is untraceable and un-hackable. Folks were using it to buy and sell drugs online, support content they liked and worst of all -- gasp! -- play poker.

Bitcoin is a P2P currency that could topple governments, destabilize economies and create uncontrollable global bazaars for contraband.

1. Bitcoin is a technologically sound project.
2. Bitcoin is unstoppable without end-user prosecution.
3. Bitcoin is the most dangerous open-source project ever created.
4. Bitcoin may be the most dangerous technological project since the internet itself.
5. Bitcoin is a political statement by technotarians (technological libertarians).*
6. Bitcoins will change the world unless governments ban them with harsh penalties

To some degree they sound like an extreme libertarian - anarchists dream.

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