|
Bitcoin is backed by the good faith and credit of the unsavory element of society which has been established for thousands of years. While there are legitimate fronts, it wouldn't exist without the opportunity to get something for nothing. It caters to some people's greed and willingness to take advantage of other peoples fears, in this instance stemming from their loss of faith in the credit worthiness of the world's governments (i.e. their un-backed currencies) during these harsh economic times. People often flock to commodities such as precious metals (bitcoins can be "mined", how's that for spin) under such circumstances.
Governments continuously seek to make their currencies more stable and more secure. If bitcoin offered significant improvements in these areas, governments would jump on the bandwagon since governments invest too. As it stands, bitcoin stability requires that more people continue to buy into it not unlike a pyramid scheme. Its security is dependent on state of the art information technology under private control with no oversight and no recourse if compromised by either outsiders or insiders. At times, it may seem that some the world's currencies aren't worth the paper they're printed on; but, you can still wipe your ass with them. You don't have intrinsic value with bitcoins to even that extent. Currency? Commodity? Barter chip? Going into bitcoin is more like converting your legal tender money into virtual jewelry because its bling is seducing even some who should know better.
The preceding has been an editorial and does not reflect the opinion of The Cellar which may accept bitcoins in the tip mug.
|