Saturday, November 29, 2014
The wolves are circling now. I have written previously about Bitcoin and its terrible prospects as a true substitute to the unique monopoly enjoyed by the current cartel of fiat currency issuers.
Now we see all manner of assaults both from a variety of angles that will likely cause bitcoin to remain a fringe or curiosity item in the world's currency general store.
First off, the U.S. is auctioning several million bitcoins to the highest bidder. These bitcoins were "seized" from the raid on Silk Road, a provider of all things clandestine and/or contraband. Suffice to say that the Greeks were far more subtle at the gates of Troy.
As if this action was not imposing enough, the currency itself may be obviated by technology. If the below is true, the currency lacks any positive differentiator from the existing menue of global currencies and will be relegated to the dustbin of history straight away. This is a great lesson in risk analysis, and a wonderful demonstration of how quickly a Sovereign reacts to internal threats on its existing monopolies. From the following article: