| There are massive flaws in the logic of this piece. In order for JP's metaphors to be accurate, the following would need to be true: 1) CELL PHONES CAUSE HURRICANES.
2) HOSTILE ALIENS ENSLAVE US EVERY YEAR. First, let's not get hung up on Bitcoin alone. Bitcoin is designed for a specific use case (store of value) while other cryptocurrencies have different use cases (means of transaction, etc.). Bitcoin is also version 1 of a new category. So maybe Bitcoin will end up being like Netscape and will pass the baton to other cryptocurrencies which go on to be successful. I will use JP's hurricane metaphor against him. He basically compares "mainstream" telecommunications (cell phones, 911 call centers) to fiat currency. He says mainstream telco is preferable to ham radios just like fiat currency is preferable to cryptocurrency. Fine. Here's where the metaphor breaks down: Mainstream telco doesn't CAUSE hurricanes. Fiat currency CAUSES (leads to) hyperinflation crises. If mainstream telco usage CAUSED hurricanes, I guarantee alternative communication methods would be given more attention. JP also claims a breakdown in the fiat system would be similar in magnitude and probability to a situation where "hostile aliens have enslaved us." Wrong again. There have been 34 episodes of hyperinflation in the LAST 30 YEARS (https://www.cato.org/sites/cato.org/files/pubs/pdf/workingpa...). Just because you are lucky to live in a place where hurricanes haven't affected you (erm...Canada) doesn't mean hurricanes aren't a problem. Also, these "hurricanes" don't just hit the coast. Argentina had a population of around 30 million people when hyperinflation was raging in 1990, impoverishing millions in a matter of months. In order for JP's model to be accurate, modern telecommunication equipment would cause hurricanes and hostile aliens would enslave us roughly every year (34 times in the last 30 years). Bitcoin and other cryptocurrencies fix a little bug in fiat currencies where every so often ALL THE PEOPLE USING THAT CURRENCY ARE SWIFTLY IMPOVERISHED. I think it's worth keeping an eye on crypto. |