How about issuing a correction—bitcoin rocks! 9,000—a value increase of 900 percent in the w9000 bitcoin value year. So is bitcoin really dead?
Bitcoin wasn’t the first internet currency, but it was the first internet currency to gain a measure of acceptance in the marketplace. There are others: You can think of ethereum and monero as the indie-rock bitcoins. What set bitcoin apart was the blockchain: A programmatic advance that provided total transparency for the currency—everyone always knows exactly how they’re minted, what the current monetary supply is, and what the total supply can be—married to total anonymity for the user base. Bitcoin is, as I noted back in 2014, a perfectly frictionless currency.
And it aspired to be a true, global currency—undercutting sovereign states, rivaling the dollar and the yen. What Next: A Masters in Meter-Maidology? Except maybe as a bartering tool for hackers, drug dealers, and prostitutes. Sorry, you’ve reached the limit on the articles you can view. The first problem for bitcoin stemmed from its defining feature: Who needs total anonymity when paying for things on the internet?
The second problem came when Mt. 850,000 bitcoins—at the time, roughly 7 percent of the entire monetary supply of the currency. So what’s behind the sudden rise in bitcoin’s valuation? Institutional investors and hedge funds have been drawn in by speculation. 9,000 bitcoin is a bubble. But that’s beside the point because the spike in valuation means that bitcoin isn’t even really a currency anymore. A currency is something you use to buy and sell goods.
In order for it to have value qua currency, it has to be reasonably stable. But whatever the case, bitcoin is still DOA as a generally accepted currency. The best users can hope for is that it becomes something like digital gold—a widely accepted commodity in which investors can stockpile value as a hedge. But even that seems like a long shot: The economy already has actual gold. If there is one, it isn’t obvious.
Which means that bitcoin will probably settle on a value at some point and go back to being the go-to method of bartering for hackers, drug dealers, and prostitutes. That is, unless the dark web simply moves on to something else. You must enter a valid email address in the field above! The top articles you need to read from the weeklystandard.
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View a range of Bitcoin statistics covering the blockchain, price history, search volume, demographics, market capitalizations, and more! Find out what Bitcoin proposals miners are voting for. Find links to some of the Bitcoin community’s best online resources, broken down by category. Total node count does not include duplicate and non-listening nodes.