Mish, Salinas & Others on Bitcoin

posted by Nima

April 30, 2013 · Posted in Monetary Economics 

Mish finally wrote his first post on Bitcoin :)

I consider this another milestone since he’s arguably one of the most influential economics bloggers out there.

A few things I wanted to point out about what he said:

I am neither a convert nor a true believer. I will stick to gold thank-you. I see things similarly to Ron Paul who said in a Bloomberg Interview “If I can’t put it in my pocket, I have some reservations about that.”

It’s a common misconception that you can’t “put bitcoin in your pocket”. You absolutely can. You can put your wallet on a flash drive and literally put it in your pocket.

Furthermore you can get actual physical bitcoins by Casascius. Personally I don’t see why you would other than as a bit of a gimmick, but hey, if you like it old fashioned, by all means go for it.

In addition you can of course make it a paper wallet which you can, if you so desire, “put in your pocket”.

Mish also quoted Hugo Salinas who as far as I can tell from his article doesn’t seem to know much about Bitcoin yet:

Let’s get this straight: real money has to be the commodity that is generally accepted by society as payment in full for goods or services received. Throughout history, the commodity most generally accepted in payment has been gold. Silver has taken the second place after gold. Gold and silver were chosen by humanity thousands of years ago, as the commodities with which to make payments.

Don’t get me wrong, I love gold as much as the next guy. But the whole article literally tries to stuff a revolutionary, disruptive technology into the conceptual box of the old payment systems we’ve known to date.

That’s fine. If everyone was on the bandwaggon already it would be way too boring, wouldn’t it?

But one challenge I’d have for Mr. Salinas (and you tell me who you think will be faster):

Let’s each order a brand new flatscreen TV anywhere in the world, I use Bitcoins, you use gold or silver, and we’ll see which of us finds a merchant faster, in other words which medium is “more generally accepted in payment”.

Ready…? GO!

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