Tuesday, April 23, 2013

For all the skepticism, nobody has any idea.

         Reading about bit coins there are strong arguments for and against bit coins. Many people believe the whole system will collapse, some believe that it's a complete ponzi scheme, and others believe the government will simply shut it down if it becomes too popular. Doclawson cites in his blog post several articles that address the governments response to bit coins. They state that the governments will institute policies directly targeting internet currencies such as bit coins. Another article by Eric Posner talks about how bit coins are simply a ponzi scheme. He cites the fact that all money supplies need to grow with demand and bit coins simply cannot expand as fast as possible. He believes that when they fail to meet the supply competitors will join the fold and simply destroy what he believes is the bit coin bubble.
           My efforts to finding the good side of bit coins seem to have fallen short. But why have they started to succeed and why do they capture people's imagination in the way they do? I believe it is because they are a currency for and from the free market. Bit coins aren't subject to the monetary supply of any nation, there is no federal reserve to regulate how much interest is going on in the supply of bit coins with them being a fixed amount coming in at any time. I believe the sort of middle finger to the man is what initially gained the interest of many people with the promise of monetary gains making them stay.

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