A post I made on a random forum on Apr 9 2013:

"To answer your first question, you really need to understand what money is and why [some] people feel that the current monetary system is flawed.

/1

But anyway, I'll explain what Bitcoin is: Bitcoin is two things, I guess. The first being a payment processing protocol much like a bank or paypal where you can transfer value (money) between different people. The reason why Bitcoin is important in this regard is that it solves what is called the 'double-spend' problem which haunts something like paypal by using a public ledger called the 'blockchain' which automatically verifies every transaction made through the network.

/2

The second thing is that, 'bitcoins' are a supposed to be a form of money themselves. The creator(s) of Bitcoin were quite well versed in a school of economics called the 'Austrian School', and one of that schools main arguments is that government should never be allowed to have a monopoly on the issuance of money. They would say that government issued money is prone to inflation, and governments use it as a political tool leading to massive business cycles and such.

/3

Follow

And bitcoins are supposed to be a type of money that is as divorced from the idea of monopoly money as possible: they are 'mined' from a decentralised network of computers; pseudonymous; and are deflationary rather than inflationary (because of the a limited supply).

/4

I'll be honest, like the people who created Bitcoin, I'm very much an adherent of the Austrian School and therefore love the idea of Bitcoin (and anything like it), but haven't bought any because I'm not an investment kind of guy. 😭
/5

The recent spike in price is interesting for a lot of reasons; some people are attributing it to the issues in Cyprus, Greece and Spain, but I'm not sure it's as simple as that. It might have to do with inflation in the dollar or just greater media exposure.

/6

Whether people should buy them or not is probably up to them, but I do believe that Bitcoin or something like it, will replace government fiat currency very soon.

/7

Imagine having that good an analysis and not buying because "you're not an investment kind of guy". Life is fun some times, happy 60k all.

/Fin.

Sign in to participate in the conversation
Bitcoin Mastodon

Bitcoin Maston Instance