Tuesday, November 13, 2012

The telephone game (Bitcoins part 2)

Good morning economists. If you recall a couple of days back I wrote an article about the bitcoin phenomenon. If you do not know what a bitcoin is or the story behind bitcoins you can access this information here.

The conclusion of my previous post was that bitcoin was a rather sluggish attempt to create an online currency that was plagued with security issues causing a lot of people to lose their hard earned cash. Yet still ever since I posted that entry, I have been receiving emails and messages from people arguing that the bitcoin was actually a success. One has even gone as far as to argue that I confused the purpose of the bitcoin. Some basic research can reveal that the bitcoin was the invention of a person who was never seen and who disappeared all of a sudden a few weeks before the system of the most important bitcoin broker was compromised resulting in huge amounts of bitcoins being lost.

This fixation of people on the idea of bitcoin, even after they might have fallen victims to hacker attacks or after they knew that other people were ripped off is puzzling. There are still people who believe that the bitcoin is or will be a success. But let me tell you. These are the people who are interested on making a profit so much so that they overlook important information that can save them a lot of money and heartache. They are blinded by they hype, so they cannot stop and think for themselves. Allow me to illustrate with a cartoon like representation.
 Remember when we were little kids and used to play the telephone game? Information was so distorted when passing from person to person that it did not make sense in the end. My personal opinion is avoid falling victim of the telephone game. Think for yourself, no matter the investment involved. And for all that is holy. Do stay away from bitcoins...for your own good.

Have a telephone free day!

5 comments:

  1. Great posting. Bitcoin isn’t trying to pass themselves off as a virtual good, that is worth something to some niche of people, Bitcoin is trying to pass themselves off as currency. Claiming that you are a currency is a big deal these days economically speaking. That is a bitcoin if it’s currency must be valued the same over it’s domain for all people otherwise it’s not really a currency, stable economically speaking. You could say that stocks are currency if bitcoins are, but you wouldn’t.
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  2. Repayments utilizing free bitcoins are generally simple. They are often produced from pouches on your desktop or even smartphone just by entering this receiver's target, the quantity after which depressing deliver. Mobile phones may also obtain a receiver's target by means of deciphering.

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  3. Over the past quarter or so We have viewed where to spend bitcoin importance surge on an ongoing basis. I had created not any notion exactly what bitcoin had been rather than even got word of crypto currency earlier.

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  4. One has even gone as far as to argue that I confused the purpose of the bitcoin. Some basic research can reveal that the bitcoin was the invention of a person who was never seen and who disappeared all of a sudden a few weeks before the system of the most important bitcoin broker was compromised resulting in huge amounts of bitcoins being lost. yeastar

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