31 Mar '13, 4pm

Links 31 March: Is Bitcoin Doing Well Or Is It Just A Bubble?

I’d go along with that too. Look around at the currency stocks in other currencies. Then have a look at the economic activity that they support. The US money supply supports the $15 trillion of the US GDP for example. And that GDP is a significant multiple of the monetary base of $600 billion or so. The same holds true of other currencies around the world (well, obviously not Zimbabwe). With Bitcoin it is very different indeed. Transaction value (which is not at all the same as GDP, transaction value will be vastly larger than GDP) is much lower for Bitcoin than the outstanding value of the currency is. That might make it a great speculative toy but it’s most certainly not making it a useful currency.

Full article: http://www.forbes.com/sites/timworstall/2013/03/31/links-...

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