Adventures with Crypto

Bitcoin in the news

Here are a selection of news articles relating to bitcoin that I found enlightening, and in some cases quite entertaining.

The coming digital anarchy

Bitcoin is giving banks a run for their money. Now the same technology threatens to eradicate social networks, stock markets, even national governments. Are we heading towards an anarchic future where centralised power of any kind will dissolve? …
Read more at The Telegraph.

The Rise and Fall of Bitcoin

Bitcoin did away with the third party by publicly distributing the ledger, what Nakamoto called the “block chain.” Users willing to devote CPU power to running a special piece of software would be called miners and would form a network to maintain the block chain collectively. In the process, they would also generate new currency. Transactions would be broadcast to the network, and computers running the software would compete to solve irreversible cryptographic puzzles that contain data from several transactions.

Privatise the pound and replace it with bitcoin, says free-market thinktank

The UK should privatise the pound and replace it with a cryptocurrency like bitcoin, according to a paper published Wednesday by the free-market Institute of Economic Affairs.

Kevin Dowd, a professor of finance and economics at Durham University, says that although bitcoin isn’t the first example of private money, it is the first that governments can’t shut down. Therefore, he says, authorities should admit that it’s here to stay, and allow competition on a level playing field between all alternative forms of money.
Read more at The Guardian.

The true value of Bitcoin

The true value of bitcoin is not what a single bitcoin can be purchased for today but the combined future value of two intangibles: the composition of the bitcoin community and bitcoin’s useful purpose.

The first part is easy to understand. Bitcoin is the accumulation of the talent, hard work and dedication of the people who develop and maintain the protocol, build industries around the protocol, the merchants and consumers who use the bitcoin protocol in their daily lives, and those who promote and protect the protocol. As more people become a part of the bitcoin community, the value of the system increases.

The second part requires a deeper dive into what bitcoin actually is (hint: it’s not virtual currency).