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Bitcoin Media Attention

At a time when much of the media is saying Bitcoin’s best days are in the past, Barry Randall, a contributor for MarketWatch, presents a few arguments why Bitcoin will succeed.

Bitcoin screw-ups have resulted in fewer Bitcoins but never more of them

Despite huge profit motives (both legal and otherwise) the supply of Bitcoins is stable, growing in accordance with the algorithms that define the currency, and outside the control or influence of third parties.

The opportunity cost of Bitcoin is negative

Bitcoin only costs roughly the price of the transaction necessary to convert existing currency and which has appreciated considerably in the four years of its existence. In other words, instead of being penalized for being an early adopter, you’ve thus far been rewarded.

Some observers have complained that this anti-inflationary dynamic encourages hoarding, which in turn reduces Bitcoin’s ability to serve as a “medium of exchange,” one of the necessary attributes of any form of money. But this same dynamic cuts in both directions: in our new world where even the ultra-conservative Japanese feel the need to debase their own currency, there is huge utility in adopting a currency that by design can’t be debased.

Read the full commentary at MarketWatch.

CC image by zcopley.

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Ashton Kutcher and Bitcoin

At the TechCrunch Disrupt NY Conference, celebrity tech investor Ashton Kutcher raised Bitcoin as an example of technology disruption for potential mass good.

“I think bitcoins are obviously becoming more and more relevant,” said the actor, who is also founder of the A-Grade venture firm.

“The fact that people are hacking bitcoins really hard, it almost hearkens back to when banks first started and they didn’t have safe safes and people were going into the banks and just robbing money out of the safe. It actually validates the value of the money itself,” he said. “I think the fact that you can buy drugs and ammo with it is actually (a) validator of the currency itself.”

“The bigger thing with bitcoin is not bitcoin itself, but what does that decentralized technology really do?” Kutcher said. “The same infrastructure that built out bitcoin could be used in the security industry for mass good.”

Via CNBC.

CC Image by jdlasica.

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