Guest Post: A Critique of Patrik Korda's 'Bitcoin Bubble 2.0' by Peter Šurda #bitcoin #freebanking

Korda seems to think that the question of the Bitcoin price being a bubble is important. I on the other hand consider it completely irrelevant. The relevant question is if Bitcoin decreases transaction costs, and the answer is that it does. Whether the price changes are a bubble or not does not change the answer to the question whether it has a comparative advantage against other media of exchange. The price is irrelevant (thanks for the slogan, Tony). Emphasising the bubble is kind of like saying that when the dot com bubble burst, this must mean that the internet is unsustainable and must collapse. Almost all critiques of Bitcoin entirely ignore transaction costs. It's like arguing that there's no point in internet if we already have the library, the post office and the TV. According to the logic of these critiques, the businesses will decide to forego a highly profitabl...

Full article: http://themonetaryfuture.blogspot.com/2013/03/a-critique-...

Tweets

Bitcoin

ft.com 03 Apr '13, 7pm

Business Education Business Education All Rankings MBA MBA Blog Masters in Management Executive MBA Executive Education Fe...

Bitcoin bubble or new virtual currency?

Bitcoin bubble or new virtual currency?

macrobusiness.com.au 24 Mar '13, 10pm

The increase in value of Bitcoins (market capitalisation of all Bitcoins rose from just over $100m to almost $800m with th...

The Bitcoin Bubble and the Future of Currency

The Bitcoin Bubble and the Future of Currency

medium.com 03 Apr '13, 1pm

Investments that are denominated in a given currency include money-market funds, bonds, mortgages, bank deposits, and othe...

Bitcoin Is The Perfect Asset Bubble -- Prices C...

businessinsider.com 01 Apr '13, 3pm

If you're like most people, you have probably been hearing a lot about "Bitcoin" recently. And, if you're like most people...

Why Bitcoin Is Like No Other Bubble We've Seen ...

businessinsider.com 03 Apr '13, 8am

It's hard for any rational human to look at this chart, and not conclude that Bitcoin is on an utterly parabolic rise, fue...

@aiyamin We conduct SRS BUBBLE TEA ANALYSES in Singapore:

@aiyamin We conduct SRS BUBBLE TEA ANALYSES in ...

hungrygowhere.com 24 Mar '13, 6am

The bubble tea craze is definitely back in full force! Originated in Taiwan in the ‘80s, bubble tea can be described as a ...

Bitcoin Bubble or New Virtual Currency?

nakedcapitalism.com 26 Mar '13, 4am

Conclusion: MtGox can pay journalists with 1.1 million dollars investment they got, so, medias will popularize BTC one per...

#Bitcoin spikes in value, prompting fears of a new bubble

#Bitcoin spikes in value, prompting fears of a ...

dailydot.com 21 Mar '13, 9pm

Today the digital currency Bitcoin spiked in value, increasing almost 70 percent in two days. Most analysts credit the ong...

Bitcoins are a bubble

buzz.money.cnn.com 05 Apr '13, 10am

First there was Tulip Mania. Then there was the dotcom craze. And let's not forget the run-up in housing prices. The newes...

Links 31 March: Is Bitcoin Doing Well Or Is It ...

forbes.com 31 Mar '13, 4pm

I’d go along with that too. Look around at the currency stocks in other currencies. Then have a look at the economic activ...

'Bitcoin is clearly a bubble'

telegraph.co.uk 05 Apr '13, 8pm

That is why gold has been so much in demand during the financial crisis – and popular with shrewd sceptics in the years be...

BitCoin Mania Accelerates

zerohedge.com 25 Mar '13, 5pm

TPTB have no problem running a BitTorrent client, and harvesting IP addresses of downloaders. Ditto BitCoin - they can har...

ANALYST: All Of My Clients Think There's A Bitcoin Bubble, But A 'Perfect Storm' Is Causing Prices To Surge

ANALYST: All Of My Clients Think There's A Bitc...

businessinsider.com 01 Apr '13, 7pm

flickr/Peter Taylor It's probably fair to say that the big rise in Bitcoin this year has caught many by surprise. Today, t...

LIKE A PHONE DIRECTORY ★Bitcoin Privacy Extension to Have Backdoor for Government Snooping?

LIKE A PHONE DIRECTORY ★Bitcoin Privacy Extensi...

activistpost.com 24 Mar '13, 8am

Bitcoin banknote concept - Wikimedia Commons Bankers are desperate to force governments into regulating decentralized virt...