Post
Topic
Board Economics
Re: Why Bitcoin will collapse in price.
by
Peter Lambert
on 12/12/2013, 14:42:59 UTC
Is it you Anonymint?

No. porc and I argued recently on the anonymity point.


That does not prove you are different people. I have had arguments with my sock puppet before. Usually he agrees with me, but there was one time he was just being difficult and argumentative while playing the devil's advocate.

bitcoin is a shining thing.
Let's try to understand  why people like shining objects. I think is radically a form of comunication: jewels like wampum shells, are worn so you can see it from far. If you have a commodity which is visible from far an so is possible to desire it for somebody who looks, you'are just advertising for it. Maybe your advertising works becaus you are a powerful, violent king, but maybe advertising needs no testimonial. If you adveritse for a commlodity, this commodity gets  medium of exchange value. Bitcoin is an internet based viral advertising campaign for a commodity, so it's a very shining, visible from far object. That's why (given the two other proprieties of rareness and indestructibility ) it's a good store of value.

I wouldn't actually call bitcoin is a shining thing. On the contrary, it allows you to hide your money and your identity (though your mileage may vary) from some prying eyes and ears...

"Money loves silence, and big money loves deathly silence"

You can use bitcoin to hide all or some of your money, but it is also quite easy to show off how much you have using bitcoins, just point to an address with a large balance and sign something using the private key for that address.