| First I want to thank you for your engagement. It is rare to find some one so deeply engaged in the topic with such a well considered point of view. Secondly I want to point out the areas where we agree. For example I would like to agree with your perspective on bitcoin, p2p and the internet. I fundamentally agree that Bitcoin was born of the internet and if the internet were to go down then Bitcoin would likely go down with it. I view Bitcoin as the native currency of the internet and it would be nothing without the internet. I don’t believe the internet is going to fail for many reasons but I do agree that Bitcoin would likely fail without the internet. Where we disagree is:
1/ Bitcoin is bad as a transactional currency today.
2/ Bitcoin is a bad store of value today.
3/ Bitcoin’s energy usage is out of control and bad for the environment. Let me elaborate:
1/ Bitcoin is the best transactional currency for any transfer outside the G8 countries for any value between $100USD and 10 billion USD, where the one of the parties exists outside of the G8. This represents over 70% of the global population. It is convenient for most on HN to ignore this fact but 70+% of the global population exists outside your bubble. For these transactions, Botcoin allows for perfect censorship resistant p2p transactions between two parties with zero compLexity. 2/ The gov and taxation policy has convinced you that 1+ years is the definition of a long-term investment but this is not the case. In Bitcoin terms, long-term means 3 years +. If you look at 3+ years as a timeframe, Bitcoin has returned an average of over 200% APR on average, handsomely beating any reasonable investment over a period of 13 years since inception. 3/ Bitcoin’s energy consumption is designed to consume only the lowest marginal cost of energy. It consumes the lowest cost energy sources which over the long term coincide with renewable energy sources for whom there is no other consumer. If there were then other consumers it would push them out at a higher marginal cost. By contrast, gold can only consume fossil fuels and rape the planet through strip mining while USD can only rape the planet through fossil fuels or through military violence. |