Quotable Quotes for 100 Bitcoins, Alex

"50 BTC = $2.50? Surely this isn't sustainable, even at the current difficulty."

        - Bitcoiner (July 15, 2010)

"Assuming that the economy is growing at around 70% per annum, I guess in 3 years time." (In response to the question, "when will Bitcoin reach dollar parity?")

        - da2ce7 (December 21, 2010)

"Bitcoin isn’t going anywhere very much except into that dustbin of interesting, tried but failed ideas."

        - Tim Worstall, Forbes (October 18, 2011)

"The Federal Reserve is not currently forecasting a recession."

        - Ben Bernanke (January 10, 2008)

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Forbes Flops Part II

How does a magazine like Forbes allow such poorly researched articles to be published to their website?

From Tim Worstall:

"Bitcoin isn’t secure as the thefts have shown, it’s not liquid, as the various price crashes have shown when one single large order goes through an exchange, it’s not widely accepted so it’s not all that good as a medium of exchange and as we’re now finding out, it’s not a good store of value either."

For most of you, I'm going to be preaching to the choir, but for the sake of the Bitcoin novice who might take Tim at his word, let's break down this paragraph:

"Bitcoin isn’t secure as the thefts have shown..."

That is analogous to saying, "the dollar isn't secure, as the bank thefts have shown." I'm not going to bother elaborating any further on that one.

"...It’s not liquid, as the various price crashes have shown when one single large order goes through an exchange..."

Bitcoin is the most liquid currency that has ever existed. Any quantity of Bitcoin can be moved instantly around the world, by anyone. You can't do that with cash, you can't even do that with digital representations of cash. You definitely can't do that with gold or silver. Your proof is a non-sequitur.

"...it’s not widely accepted so it’s not all that good as a medium of exchange..."

In 2004 you could have said, "Facebook is not widely used so it's not all that good as a social network." You would have been right... at the time. Was October 18th, 2011 the deadline for Bitcoin? Was that written down somewhere?

"...it’s not a good store of value either."

Neither was Apple stock... in March of 2000.

Regardless, this is not your parents' currency, and doesn't necessarily have to possess the properties of a traditional currency in order to succeed. Bitcoin doesn't have to store value to exist as a medium of exchange. Any ability to do so is merely icing on the cake.

Tim Worstall, your proof of "The End of Bitcoin" is only proof of your lack of foresight and inability to appreciate the most important development that the Internet has seen since email. I'd like to see a follow-up to your article this time next year, but I have a feeling you're not going to want to write about the taste of crow. I hear it's good with mint-sauce.

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