Topic: 2013-03-05 Seeking Alpha: Bitcoin Bubble 2.0 (Read 2409 times)
Isn't the USD susceptible to the author's claim of being "hyperinflated in substance"? There are thousands of fiat currencies out there, yet the USD does fine. Not to mention the USD printing press runs 24/7. Bitcoin may not always be the only cryptocurrency, but it doesn't have to be for it still to have value.
Well, I have the original on my kindle, but the site went back up so it's not a problem.
Anyway, this is my rebuttal.
Anyway, this is my rebuttal.
I hope that someone has saved it 
What? I just read it on the site...
Anyway, here it is:
He quotes Bernard Baruch at the beginning of his piece. Bernie was the head of the War Industries Board during WWI. He's one of the more manipulative moneymen in American history and is one of the godfathers of the American war machine.
If this poor kid thinks Baruch is someone to emulate, he's already wandering around in the weeds. No wonder Bitcoin confuses him.
If this poor kid thinks Baruch is someone to emulate, he's already wandering around in the weeds. No wonder Bitcoin confuses him.
There bas been an influx of super trolls lately from the day trading arena basically rehashing the same ol' arguments many bitcoiners have talked about the past 2+ years on a daily basis.
I hope that someone has saved it
I wrote a rebuttal, I have to get offline now but I'll post it on my blog later today.
do you have the original cached?
Dude, the blogger should at least admits that he's wrong.
If he did, he have balls and I respect him for it.
If he did, he have balls and I respect him for it.
Lol the article was so much fail that it self-deleted? 
I wrote a rebuttal, I have to get offline now but I'll post it on my blog later today.
I don't know if it's fair to say this, but I've always thought of Seeking Alpha as a site for short sellers to congregate and figure out who will be their next target. This article seems pretty typical. I think you can short btc on mpex.co any others? I'm currently holding onto btc both short and long term, but reserving the right to change my mind...
I'd be curious to know if any short sellers on MPEX have lost their shirts over the last week. 
Did he deleted it?
Looks like the toys have gotten thrown out of the cot ...
epic.http://seekingalpha.com/user/7761841/instablog/tag/bitcoin%20bubble%20euphoria%20crowd%20delusion%20token%20money
Bruised ego most likely.
Did he deleted it?
Quote
Bitcoins can be hyperinflated in substance
--This is a feature, not a flaw. Admittedly a lot of people seem to be struggling with the flip-side of Bitcoin's Open Source nature (sigh...). They're happy that Bitcoin's source code can be inspected for safety and trustworthiness reasons, but they don't want too many competitors popping up, lest their hard-speculated wealth gets inflated away This could also explain why the concept is hard to "sell" to potential newcomers because they immediately think they've detected a flaw (and that the Bitcoin fan is a gullible idiot). Bitcoin's solution to the hyper-inflation problem is not the "21 million fixed inflation target", it's about giving ordinary people the power to create new currencies that are technically robust. And it's about having faith that this "ecosystem of competing crypto-currencies" will eventually settle into a dynamic equilibrium. As an aside, the competitive side of Bitcoin alt-chains seems to have been struggling since the very beginning, and I hope that emerging payment schemes such as Ripple will help to speed things up. I bet the guy behind Ripple is the real Satoshi ...just kidding 
Exactly.
We all knew from the very beginning that anyone could create a fork of bitcoin at anytime. I'm not sure people even need to be reminded of that considering how obvious it is once you understand it's fully free and opensource software.
I don't know if it's fair to say this, but I've always thought of Seeking Alpha as a site for short sellers to congregate and figure out who will be their next target. This article seems pretty typical. I think you can short btc on mpex.co any others? I'm currently holding onto btc both short and long term, but reserving the right to change my mind...
well, they asked for a blow-off top, they got one. at least the part up looks finished.
Quote
Summary:
» Bitcoins can be hyperinflated in substance
» Bitcoins can never be the most saleable good
» Bitcoins cannot account for the regression theorem
» Bitcoins are the equivalent of token money
» Bitcoins are the opposite of anonymous
» The USD price of a bitcoin has been rising in an unsustainable fashion, the only thing missing being a blow-off top
» Bitcoins can be hyperinflated in substance
» Bitcoins can never be the most saleable good
» Bitcoins cannot account for the regression theorem
» Bitcoins are the equivalent of token money
» Bitcoins are the opposite of anonymous
» The USD price of a bitcoin has been rising in an unsustainable fashion, the only thing missing being a blow-off top
http://seekingalpha.com/instablog/7761841-patrik-korda/1616371-bitcoin-bubble-2-0
Regression theorem is just one hypothesis on how we invented money (the other popular one is money as debt) - but it does not state that this is the only way to create money in a society that has the technologies that we have now.
This.
I think it is a correct description of the past. And that's all.
It smells like a 'literate' hit-piece, sprinkled with digs to smear Chuck-E-Cheese tokens, tulip manias, derision of crypto-geeks and hints at underworld characters who choose to use btc, etc ... sour grapes?, wants to get in lower? spurned gold-bug? ... hard to say, but not a serious academic work, or even that useful to gain a market understanding.
I noticed that the trollie-moley population seems way too quite. Switching tactics maybe for articles and commentary off-forum. Most news articles have solid btc commentary by fellow bitcoiners to counter any FUD... but this is the first time I sense the trolls are at a loss to counter the rise in prices without looking foolish.
FF
He basically admits right at the start that he doesn't understand the technology and has made no attempt to learn what he senses to be "jargon",
and then he immediately abstracts away this deficiency in his understanding by resorting to an analogy (a dangerous tactic for any thorough logician), from the time when the technology he does not want to understand, or admit to the functional novelties of, does not exist
From there on you know he can be only analyzing bitcoin in the abstract sense using a theory of money framework applicable to the 1970's ... a nice trick but useless for a modern understanding.
Also he italicises quotes from well-known authors, Menger, von Mises, etc and then does the same thing for his own sections he thinks are that important, in his own mind, or to lend undeserved authority or weight to?
It smells like a 'literate' hit-piece, sprinkled with digs to smear Chuck-E-Cheese tokens, tulip manias, derision of crypto-geeks and hints at underworld characters who choose to use btc, etc ... sour grapes?, wants to get in lower? spurned gold-bug? ... hard to say, but not a serious academic work, or even that useful to gain a market understanding.
That is not say that bitcoin isn't in a bubble of course, all monetized instruments are in a state of bubble,
Quote
A conversation with a typical bitcoiner usually leads into a whole series of ignoratio elenchi after ignoratio elenchi revolving around technological jargon.
and then he immediately abstracts away this deficiency in his understanding by resorting to an analogy (a dangerous tactic for any thorough logician), from the time when the technology he does not want to understand, or admit to the functional novelties of, does not exist
Quote
Thus, I think it would be useful to start this article off with an analogy set in the past. Suppose that during the 1970's, ...
From there on you know he can be only analyzing bitcoin in the abstract sense using a theory of money framework applicable to the 1970's ... a nice trick but useless for a modern understanding.
Also he italicises quotes from well-known authors, Menger, von Mises, etc and then does the same thing for his own sections he thinks are that important, in his own mind, or to lend undeserved authority or weight to?
It smells like a 'literate' hit-piece, sprinkled with digs to smear Chuck-E-Cheese tokens, tulip manias, derision of crypto-geeks and hints at underworld characters who choose to use btc, etc ... sour grapes?, wants to get in lower? spurned gold-bug? ... hard to say, but not a serious academic work, or even that useful to gain a market understanding.
That is not say that bitcoin isn't in a bubble of course, all monetized instruments are in a state of bubble,
Quote
Summary:
» Bitcoins can be hyperinflated in substance
» Bitcoins can never be the most saleable good
» Bitcoins cannot account for the regression theorem
» Bitcoins are the equivalent of token money
» Bitcoins are the opposite of anonymous
» The USD price of a bitcoin has been rising in an unsustainable fashion, the only thing missing being a blow-off top
» Bitcoins can be hyperinflated in substance
» Bitcoins can never be the most saleable good
» Bitcoins cannot account for the regression theorem
» Bitcoins are the equivalent of token money
» Bitcoins are the opposite of anonymous
» The USD price of a bitcoin has been rising in an unsustainable fashion, the only thing missing being a blow-off top
http://seekingalpha.com/instablog/7761841-patrik-korda/1616371-bitcoin-bubble-2-0
I would say it is pretty good article, though he acutally didn't quite understand bitcoin, like the anonymity (It is not anoymous, but definitely not the opposite), he did see competition from alternative currencies, but these competition is not about "hyperinflated in substance" since once bitcoin establish itself, it has a unbreakable "blockchain" that no way any other alternative currencies can provide. (They may provide other features that people like more and ultimately win over bitcoin, but if they win, then bitcoin will die( I mean become insignificant)).
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