Incoming from Detlev Schlichter. He is back blogging. His second recent posting, the one after the one that just says he’s back, is about Bitcoin. He thinks that the Bitcoin principle, so to speak, even if maybe not Bitcoin itself, has a future:
Central bankers of the world, be afraid, be very afraid!
My own sense is that, just as Schlichter says, the world’s rulers are now stuck in a monetary prison of their own making, from which they cannot now extricate themselves. Quite a few of them understand approximately what is wrong with their current policies, even as many others of these people have no clue. Many others favour the current state of the banking system, because it enriches them even as it impoverishes most others. But even those banker/politicians who do understand what harm they are now inflicting upon the world and would like to stop, don’t know how to. It is one thing to be in a prison and to know that you are in a prison, quite another to escape from the prison.
To switch metaphors from the prison to the hospital, the world’s banking system is now alive rather than dead, but not in the sense that the patient is up and about, playing beach volleyball with its children like a tampon advert woman. It is alive merely in the sense that a terminally ill patient, lying in a hospital bed after a horribly intrusive death-postponing operation, sinking slowly rather than fast, is also alive rather than dead.
Only outside monetary influences, such as Bitcoin or such as variations on the Bitcoin theme, will bring back a world of true money.
The fact that, if you put some of your wealth into Bitcoin, you just might lose damn near the lot is a feature not a bug. Government guarantees that you won’t lose out no matter how unwise your decisions may prove to be are the problem, not the solution.
Schlichter spends quite a lot of his piece denouncing a certain Mark T. Williams, a finance professor at Boston University’s School of Management, but he ends his piece by quoting him again…
If not controlled and tightly regulated, Bitcoin – a decentralized, untraceable, highly volatile and nationless currency – has the potential to undermine this longstanding bond between sovereign and its currency.
… and agreeing with him! That’s a feature rather than a bug.
Welcome back to the blogosphere, Herr Schlichter.
LATER: And as I should have added, I am hosting a talk tomorrow evening about Bitcoin etc., given by Dominic Frisby (that’s Dominic’s thoughts on the recent Bitcoin disaster/price plummet (which Bruce Hoult explained here)). There is not a lot of room left for more would-be attenders, but there is, as of now, some.