After several embarrassments, Krugman makes another rather sad attempt to cover Bitcoin which according to him “is a digital currency that has value because … well, it’s hard to say exactly why”.
Indeed, he wouldn’t be amongst my favorite economic idiots if his ignorance on the “why” and in fact on the entire protocol, process, and purpose behind mining, were to keep him from boldly declaring that with Bitcoin “we are for some reason digging our way back to the 17th century”.
And just by the by: If someone tries to lecture me on the supposed “barbarism of gold” without showing me that he has had the capacity, rigor, or curiosity to do even the most basic research into the unspeakable and unprecedented genocides, world wars, civil wars, and destruction brought about by fiat money central banking systems, then I cannot possibly take that person serious for even just a second.
What an embarrassment for mankind to still have mental garbage of this kind roaming the web and how beautiful to see Bitcoin slowly but surely push it into complete and total irrelevance.
First and foremost, I applaud Peter for coming up with an educated attempt to challenge Bitcoin, since most criticisms are usually leveled by clueless and embarrassing amateurs who probably take their economic advice from Paul Krugman and other modern day priests.
His argument boils down to one point: He claims bitcoin doesn’t have “intrinsic value”.
This surprises me, since as a fellow Austrian he should know that there is no such thing.
Value is by definition contingent upon external factors, namely where someone places it on his preference scale against other goods.
I believe what he’s TRYING to say though is that gold can still be used as jewelry if all fails, while Bitcoin has no other utility than for it to be used as a medium of exchange.
This argument can be quickly dismissed because even if I couldn’t use it as a medium of exchange I could still use it as a proof of ownership certificate (just to name one example), as can already be witnessed with projects such as Colored Coins and MasterCoin.
It’s still too early to say what other purposes Blockchain can be utilized for, but I would submit that the opportunities are literally infinite.
I’d be curious what he’d say if someone filled that knowledge gap for him.