I don't have much to add that hasn't been said in the other comments here, but a currency with a "market capitalization" of $30 million can never be stable. A single wealthy person could easily move the market a significant percentage.
Bitcoin's comeback: should Western Union be afraid?
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Re: Bitcoin's comeback: should Western Union be afraid?
#12I really like the concept of "metacurrency" that this article talks about. This is exactly the area I think Bitcoin will be most successful. I don't ever see it replacing the dollar, or even credit cards. The one thing that Bitcoin really excels at is the instantaneous transfer of unlimited amounts of money from one place in the world to another. Rick Falkvinge talks about this a bit in his "four drivers" series: htt…
Not sure why you're getting downvoted for this, especially since this is the main idea of the article.
So what's to keep a loose network of independent merchants from popping up around the globe to undercut Western Union?
Re: Bitcoin's comeback: should Western Union be afraid?
#13Earlier quoted context omitted.
Wonder what will last longer, the euro or bitcoin.
I don't think that's an analogy you really want to draw. The Euro's current problems are due to governments with Euro-denominated debt being unable to take the easy way out of servicing their debt by printing money. One of Bitcoin's defining features is that it's impossible for governments to devalue the currency by just printing money. Since both currencies behave the same way in this regard, a Bitcoin economy would…
Oh, no. The governments which will borrow more in bitcoin than will be able to pay back, will just default. When Argentina/Russia defaulted on their debts denominated in dollars, how bad was that for the dollar?
So... Bad for them (governments), bad for their foolish creditors but a matter of trifling importance for bitcoin as protocol and store of value.
Re: Bitcoin's comeback: should Western Union be afraid?
#14>This presents a bit of a puzzle for Bitcoin skeptics. Uh, no, it presents absolutely no puzzle at all for those of us who believe Bitcoin will follow a boom-bust cycle without ever providing a truly stable currency.
If Bitcoin were nothing but the pyramid scheme its detractors say it is, it should not have recovered. Collapsed pyramids don't reassemble themselves.
Re: Bitcoin's comeback: should Western Union be afraid?
#15>This presents a bit of a puzzle for Bitcoin skeptics. Uh, no, it presents absolutely no puzzle at all for those of us who believe Bitcoin will follow a boom-bust cycle without ever providing a truly stable currency.
If Bitcoin were nothing but the pyramid scheme its detractors say it is, it should not have recovered. Collapsed pyramids don't reassemble themselves.
There are various groups of Bitcoin detractors and to lump all of them into one is a pretty clear straw man.
Re: Bitcoin's comeback: should Western Union be afraid?
#16Earlier quoted context omitted.
Wonder what will last longer, the euro or bitcoin.
I don't think that's an analogy you really want to draw. The Euro's current problems are due to governments with Euro-denominated debt being unable to take the easy way out of servicing their debt by printing money. One of Bitcoin's defining features is that it's impossible for governments to devalue the currency by just printing money. Since both currencies behave the same way in this regard, a Bitcoin economy would…
"Easy way out of servicing their debt" is a facile misrepresentation of the problem.
The problem for a country like, for instance Spain, is that their current account balance has gone highly negative. This can be due to government overspending or private overspending and contraction.
In fact Spain didn't have a big public debt problem before the crisis. Their problems stem mostly from contraction of the private sector.
If Spain had its own currency, the current account deficit would create a surplus of peseta on the international markets and drive up the price of imports for Spain, while making products produced in Spain cheaper and easier to export. Devaluation would cause short term pain as Spaniards find themselves unable to afford foreign goods but long term prosperity as it would allow their economy to require its footing through favorable export terms.
The Euro itself won't be devalued as long as Germany retains a current account surplus. Ironically a very substantial part of Germany's surplus is exports to the so-called "PIIGS."
In the US we have examples of winner and loser regions due to our common currency. Witness: Michigan vs. Georgia. The situation here is different though because money can still flow into a loser state like Michigan through the federal government (social security payments, for instance, and highway funds). And most importantly Americans are highly mobile; Michiganders can head off to Chicago or Atlanta so while the prospects for Michigan itself remain bleak, people aren't trapped.
The people in the "PIIGS" countries are facing a truly bleak future. The Euro system has denied their countries the tools needed to recover on their own. And the practical realities of (the lack of) labor mobility in the Euro zone mean the people are trapped.
Re: Bitcoin's comeback: should Western Union be afraid?
#17Articles that end in question marks are universally answered "no".
Re: Bitcoin's comeback: should Western Union be afraid?
#18I really like the concept of "metacurrency" that this article talks about. This is exactly the area I think Bitcoin will be most successful. I don't ever see it replacing the dollar, or even credit cards. The one thing that Bitcoin really excels at is the instantaneous transfer of unlimited amounts of money from one place in the world to another. Rick Falkvinge talks about this a bit in his "four drivers" series: htt…
Not sure why you're getting downvoted for this, especially since this is the main idea of the article. So what's to keep a loose network of independent merchants from popping up around the globe to undercut Western Union?
> Not sure why you're getting downvoted for this
There's a portion of internet users who have decided that they really really hate Bitcoin and go out of their way to denigrate it and downvote anyone who doesn't share their views. I can understand the people who are skeptical, because Bitcoin definitely has its problems, but this seething hatred mystifies me...
Re: Bitcoin's comeback: should Western Union be afraid?
#19I think Western Union is probably more afraid of lawsuits that seek to invalidate its protectionist legislation.
http://dockets.justia.com/docket/california/candce/5:2011cv0...
Re: Bitcoin's comeback: should Western Union be afraid?
#20Articles that end in question marks are universally answered "no".
Someone should write an article: 'Are articles that end in question marks universally answered "no"?'.