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Don’t get me wrong, I’m not saying Bitcoin is the greatest thing ever or that it will take over the world. It obviously has issues like any new thing does, but I’m not ready to write it off as a Ponzi scheme or the Friendster of finance either. As a h4x0r it kinda gives me a stiffy. I’d just like to hear some cogent arguments against it other than “it’s a ponzi scheme” or “it’s a fad” or “who cares?”[/quote]
I think you provide the answer right here.
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For the record and full disclosure, I don’t own any Bitcoins. And given that it just passed $1000 I probably won’t be owning any anytime soon.
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It’s too volatile in it’s price swings to operate as a currency. Essentially the bitcoin economy is in massive deflation right now. I.e. it used to cost 50 bit coins to buy a new car now it takes 20. Sometime in the future it will likely suffer massive inflation. It’s just incredibly hard to operate in an economy where the currency is subject to massive price swings.