There has been a lot of commentary in the general news recently about Bitcoin, the digital currency that its creators and users hope will have the same, inelastic qualities ascribed to such things as gold. At a time when mainstream, fiat money has seen its value trashed in certain cases by central banks’ money-printing policies, it is easy to see the attractions.
But what the hell is Bitcoin? How does it work? And what do free marketeers of an “Austrian” bent make of it? Well, here is an essay by Jeffrey A Tucker, which I think is well worth reading.
Bitcoin is certainly making the news at the moment, judging by some very sharp market movements over the past day or so. Even if it turns out not to be quite as successful as hoped, if it sparks off more thinking about alternatives to government funny-money, that has to be a good thing.
A Bitcoin hedge fund has been set up in Malta. I am actually going down to Malta in May for a few days – perhaps I’ll look up the managers there to find out more.