Good rebuttal of Denningers article.
Judging from the discussion on Denningers forum it looks like a majority of his own forum users are in favour of bitcoin.
Topic: 2013-04-03 Forbes - bitcoin-obliterates-state-theory-of-money - Matonis (Read 1248 times)
April 04, 2013, 06:52:22 AM
April 03, 2013, 08:22:26 PM
The confirmation time argument is a red herring.
A zero confirmation bitcoin transaction is not any less secure than an instant but reversible alternative if suitable precautions are implemented. Bitcoin transactions show up within seconds and are irreversable within minutes. Other electronic payments are no faster and basically never become irreversible.
A zero confirmation bitcoin transaction is not any less secure than an instant but reversible alternative if suitable precautions are implemented. Bitcoin transactions show up within seconds and are irreversable within minutes. Other electronic payments are no faster and basically never become irreversible.
April 03, 2013, 08:10:00 PM
http://www.forbes.com/sites/jonmatonis/2013/04/03/bitcoin-obliterates-the-state-theory-of-money/
Usual great quality from Jon Matonis in his deconstruction of Denninger's failed attempt ... also some delicious mind ticklers in there too like the below
Usual great quality from Jon Matonis in his deconstruction of Denninger's failed attempt ... also some delicious mind ticklers in there too like the below
Quote
Typically, entropy refers to a measure of the unavailable energy in a closed thermodynamic system that is also usually considered to be a measure of the system’s disorder. In the case of bitcoin, I suspect Denninger is taking it to mean the degradation of the matter in the universe because of his explicit comparison to gold. While it is true that bitcoins lost or forgotten are ultimately irretrievable, I view that as a feature not a bug because it is the prevailing trait of a digital bearer instrument. Two bitcoin digital attributes that make it superior to physical gold are its ability to create backups and its difficulty of confiscation. Furthermore, the number of spaces to the right of the decimal point (currently eight) is immaterial to bitcoin’s suitability as a monetary unit.
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