Reasons not to Buy Bitcoin

Other Arguments:

  • Bitcoin is a scam because “they” can always print more.
    • No, only 21 million Bitcoins will ever be created.  This limit is hard-coded into Bitcoin’s code.  This can only be changed if a majority of holders agree to change it. The holders of Bitcoin have an interest in Bitcoin staying scarce.  If they were to change this limit they would be devaluing their own ownership stake.
  • What if inflation doesn’t go up, but stays low?
    • Your investment assets may inflate in nominal value, but if the interest rates stay depressed (low-interest rates), retirees won’t be able to live on the interest, even with high nominal portfolio values.
    • Reasons why inflation may rise:
      • If we don’t get a depression, one potential cause of inflation is commodity scarcity in 2 or more years.
      • The Federal Reserve will have a hard time keeping inflation under control by raising rates because the Federal Government can’t afford to raise the federal funds rate.  Doing so would cause the government to pay higher interest on its debt, which the government can’t afford.
  • What if the government develops its own digital currency?
    • The digital dollar will have the same monetary policy (more money printing).  Bitcoin’s rationale still holds up because its 21 million coin limit is its competitive advantage.
  • Bitcoin’s mining process uses too much energy.
    • The dollar is a currency backed by the US military.  Which is worse?

 

Epsilon Theory Podcast: Bitcoin: Is That All There Is?

In this kick-off Epsilon Theory webcast, I’m joined by renowned cryptocurrency miner and trader @notsofast for a wide-ranging conversation on Bitcoin and crypto.

To put it in crypto and Epsilon Theory lingo, we talk about talk about DeFi, the “Saylorization” of Bitcoin, and brainstorm about how to keep the animal control officers focused on the huckster raccoons rather than us too-clever-by-half coyotes.

To put it more simply, we’re talking about this:

Can Bitcoin preserve its revolutionary potential after a Wall Street bear hug?
I’m highly skeptical, but @notsofast has some ideas on how to make this work. The end result of this conversation is a challenge and a research project for both of us … and for you!

How the US government is using blockchain to fight fraud | Kathryn Haun (TEDx)

Kathryn is sharing about the first case of the US government using blockchain to fight fraud. She is sharing about how they could shut down the silk road and even indicted federal agents in the process. Based in San Francisco, Kathryn Haun is a federal prosecutor with the U.S. Department of Justice and is its first-ever coordinator for emerging financial technologies. Since 2006, she has served as an Assistant U.S. Attorney, first in the Washington D.C. area and later in San Francisco, California. She has investigated and prosecuted hundreds of violations of federal criminal law in U.S. courts, with a focus on organized crime syndicates, cybercrime, the Dark Net, and fraud. In addition to her role at the Justice Department, she teaches Stanford Law School’s first-ever course on Cybercrime and Digital Currency and is frequently called on by U.S. and international policymakers for her expertise in these areas.