The “creation story” of Bitcoin is that a bunch of crooks created a fake “asset” for crooked purposes. Is it any wonder that the only use for it has ever been to facilitate the purchase of illegal things, and that a lot of the people associated with it are themselves crooked.
In 2013 the government of Cyprus executed a one-off levy of 10% of all its citizens’ savings. A fair amount of those savings went quickly into Bitcoin before the state got its hands on them. Were the people trying to hang on to their savings crooked?
It wasn’t a tax, it was a levy to help bailout Cypriot banks in a deal with Brussels. Capital flight might be a better term. One way or another, it demonstrated a practical utility for Bitcoin.
So, it would be ok if I told my clients to pay some of my fees using Bitcoin, so I don’t have to include them in my tax return?
UnHerd Reader
1 month ago
Bitcoin’s value primarily lies in its scarcity, its resistance to confiscation, and its ease of transfer. Furthermore, unlike gold today, it is difficult to counterfeit. For example, a person can flee an authoritarian country, taking their wealth with them simply by memorizing 12 simple English words. Try doing that with gold or a bank transfer… The author is clearly writing about something he dislikes and has not studied in the slightest (for example: a satoshi is simply one hundred-millionth of a Bitcoin, its smallest unit). Bitcoin is certainly open to criticism, as is Trump’s intention to establish a national reserve. But to do so, you need to have thoroughly researched the topic. The author has not done this.
Agree. I don’t think the author did their homework at all. The argument against Bitcoin and Trump’s backing of it is rather rudimentary. People have been talking about the crypto currency’s imminent bust for years. That being said, there still isn’t complete evidence to say that Bitcoin is above board.
UnHerd Reader
1 month ago
Bitcoin’s value primarily lies in its scarcity, its resistance to confiscation, and its ease of transfer. Furthermore, unlike gold today, it is difficult to counterfeit. For example, a person can flee an authoritarian country, taking their wealth with them simply by memorizing 12 simple English words.
Try doing that with gold or a bank transfer… The author is clearly writing about something they dislike and have not studied in the slightest (for example: a satoshi is simply one hundred-millionth of a Bitcoin, the smallest unit).
Bitcoin is certainly open to criticism, as is Trump’s intention to establish a national reserve. But to do so, you need to have thoroughly researched the topic. The author has not done that.
The author has not done that. I’d be fairly sure Trump hasn’t either.
Ernesto Candelabra
1 month ago
What is Trump’s ‘atavistic chauvinism’? If it isn’t just more lazy journalism….
Neal Attermann
1 month ago
More of a Thanksgiving dinner rant than a thoughtful piece re crypto or the blockchain. Would be really interested in a thoughtful essay about blockchain technology and how real Web3 is.
Here is my thoughtful essay about blockchain technology: Blockchain technology is cumbersome, inefficient, and energy hungry. This is why it has never been used for anything that is useful in a “real world” sense.
My recollection is that it was once useful for buying drugs on the (now defunct) Silk Road website. I can’t recall it being useful for anything else since then.
Dave Canuck
1 month ago
Trump and crypto go hand in hand, they are both con jobs. A president undermining his own country’s currency, there is no bigger betrayal . Let the 4 year billionaire con job begin, drain the swamp and milk the country, people will be so disappointed and they will pay dearly for the coming shitshow
Bitcoin’s current or future role as a currency or alternative payment system is the sideshow that is often the focus of critics. We don’t need a new payment system in the U.S. We have plenty that work just fine.
Bitcoin is more like a decentralized central bank than an alternative currency. It has the same primary characteristics of a central bank, with custody being the most important one. As such, it has become an alternative form of custody for cash. Its volatility to date has made this less obvious, but I suspect that volatility to soon settle within a more acceptable range.
I agree with other comments regarding the lack of knowledge on the part of the author. But I don’t have the time nor patience to help him gain a better understanding, or to explain why his comparisons to previous forms of currency make little sense.
If Bitcoin is a “decentralised central bank”, it is a woefully inefficient one. Its cumbersome structure means it cannot ever be used as a general medium of exchange, and it is too volatile to be an effective one anyway.
Matthew Book
1 month ago
I don’t own any crypto and have only a rudimentary knowledge. It’s too bad the writer couldn’t argue clearly why fiat currency is still a better system than one based on a scarce resource such as gold or engineered-scarce bitcoin. I was open to being informed but the sarcasm-laden rhetoric and name-calling means the writer is more emotionally invested than rationally committed. I wish Unherd would get some better writers.
Benedict Waterson
1 month ago
Trump’s presidency will be terrible for “trans people”
Ramon Bloomberg
1 month ago
Bitcoin and Satoshi’s white paper solve the double spend problem for digital currencies. All currencies including fiat currencies are currently digital currencies. Non-cryptocurrencies get around the double spent problem by way of a third-party middleman who takes on power and authority et cetera. Bitcoin style crypto does away with the middleman. The value of a bitcoin derives both from the blockchain network which is not immaterial and from the proof of work operations which require a good amount of energy to complete.
It’s really hard to say if the author of this piece knows anything about crypto. Clearly the editors of UnHerd don’t either or else they might consider getting a real interesting article written about the stuff..
The “creation story” of Bitcoin is that a bunch of crooks created a fake “asset” for crooked purposes. Is it any wonder that the only use for it has ever been to facilitate the purchase of illegal things, and that a lot of the people associated with it are themselves crooked.
Sounds like politician to me.
In 2013 the government of Cyprus executed a one-off levy of 10% of all its citizens’ savings. A fair amount of those savings went quickly into Bitcoin before the state got its hands on them. Were the people trying to hang on to their savings crooked?
A fascinating tale.
Yes. They are “tax avoiders”.
It wasn’t a tax, it was a levy to help bailout Cypriot banks in a deal with Brussels. Capital flight might be a better term. One way or another, it demonstrated a practical utility for Bitcoin.
So, it would be ok if I told my clients to pay some of my fees using Bitcoin, so I don’t have to include them in my tax return?
Bitcoin’s value primarily lies in its scarcity, its resistance to confiscation, and its ease of transfer. Furthermore, unlike gold today, it is difficult to counterfeit. For example, a person can flee an authoritarian country, taking their wealth with them simply by memorizing 12 simple English words. Try doing that with gold or a bank transfer… The author is clearly writing about something he dislikes and has not studied in the slightest (for example: a satoshi is simply one hundred-millionth of a Bitcoin, its smallest unit). Bitcoin is certainly open to criticism, as is Trump’s intention to establish a national reserve. But to do so, you need to have thoroughly researched the topic. The author has not done this.
Was that really so good it warranted saying twice?
Agree. I don’t think the author did their homework at all. The argument against Bitcoin and Trump’s backing of it is rather rudimentary. People have been talking about the crypto currency’s imminent bust for years. That being said, there still isn’t complete evidence to say that Bitcoin is above board.
Bitcoin’s value primarily lies in its scarcity, its resistance to confiscation, and its ease of transfer. Furthermore, unlike gold today, it is difficult to counterfeit. For example, a person can flee an authoritarian country, taking their wealth with them simply by memorizing 12 simple English words.
Try doing that with gold or a bank transfer… The author is clearly writing about something they dislike and have not studied in the slightest (for example: a satoshi is simply one hundred-millionth of a Bitcoin, the smallest unit).
Bitcoin is certainly open to criticism, as is Trump’s intention to establish a national reserve. But to do so, you need to have thoroughly researched the topic. The author has not done that.
The author has not done that. I’d be fairly sure Trump hasn’t either.
What is Trump’s ‘atavistic chauvinism’? If it isn’t just more lazy journalism….
More of a Thanksgiving dinner rant than a thoughtful piece re crypto or the blockchain. Would be really interested in a thoughtful essay about blockchain technology and how real Web3 is.
Here is my thoughtful essay about blockchain technology: Blockchain technology is cumbersome, inefficient, and energy hungry. This is why it has never been used for anything that is useful in a “real world” sense.
Wrong again
Truly remarkable
My recollection is that it was once useful for buying drugs on the (now defunct) Silk Road website. I can’t recall it being useful for anything else since then.
Trump and crypto go hand in hand, they are both con jobs. A president undermining his own country’s currency, there is no bigger betrayal . Let the 4 year billionaire con job begin, drain the swamp and milk the country, people will be so disappointed and they will pay dearly for the coming shitshow
Bitcoin’s current or future role as a currency or alternative payment system is the sideshow that is often the focus of critics. We don’t need a new payment system in the U.S. We have plenty that work just fine.
Bitcoin is more like a decentralized central bank than an alternative currency. It has the same primary characteristics of a central bank, with custody being the most important one. As such, it has become an alternative form of custody for cash. Its volatility to date has made this less obvious, but I suspect that volatility to soon settle within a more acceptable range.
I agree with other comments regarding the lack of knowledge on the part of the author. But I don’t have the time nor patience to help him gain a better understanding, or to explain why his comparisons to previous forms of currency make little sense.
If Bitcoin is a “decentralised central bank”, it is a woefully inefficient one. Its cumbersome structure means it cannot ever be used as a general medium of exchange, and it is too volatile to be an effective one anyway.
I don’t own any crypto and have only a rudimentary knowledge. It’s too bad the writer couldn’t argue clearly why fiat currency is still a better system than one based on a scarce resource such as gold or engineered-scarce bitcoin. I was open to being informed but the sarcasm-laden rhetoric and name-calling means the writer is more emotionally invested than rationally committed. I wish Unherd would get some better writers.
Trump’s presidency will be terrible for “trans people”
Bitcoin and Satoshi’s white paper solve the double spend problem for digital currencies. All currencies including fiat currencies are currently digital currencies. Non-cryptocurrencies get around the double spent problem by way of a third-party middleman who takes on power and authority et cetera. Bitcoin style crypto does away with the middleman. The value of a bitcoin derives both from the blockchain network which is not immaterial and from the proof of work operations which require a good amount of energy to complete.
It’s really hard to say if the author of this piece knows anything about crypto. Clearly the editors of UnHerd don’t either or else they might consider getting a real interesting article written about the stuff..
Bitter writings