04 Mar '13, 9am

Is there a Bitcoin bubble?

scott: Bitcoin is an alternative currency that is either used for speculation, but it is also used for anonymous transaction. The technology that enables existence of Bitcoins makes it impossible to shut-down by governments, it is annonymous and and its virtual nature makes it ideal for internet transactions – especially the dubious ones such as purchases of “cybercrime services” (spams, ddos attacks, virtual identities etc.), or internet purchases of drugs, weapons and other shady stuff. So unlike Tyler Cowen I do not think that Bitcoin is pure bubble. There are people that really need to use a safe methods of payment and who were burned by using alternatives such as egold, or paypal (that can be shutdown by authorities). My opinion is that the volatility of bitcoin price has more to do with a lot of different possible equilibira. There exists a possibility where bitcoin ...

Full article: http://www.themoneyillusion.com/?p=19705

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probably

probably

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