The Big Five-Year Bet Over Bitcoin Has a Winner The ...

Planet Money Episode 891: Who Won The Bet Over Bitcoin?

I don't know if anyone here listens to "Planet Money", a pop economics podcast by NPR. Their most recent episode was about widespread adoption of Bitcoin.
Specifically, it was about a bet between Ben Horowitz, a venture capitalist who believed that Bitcoin was on its way to becoming a widespread payment platform, and Felix Salmon, a finance journalist who thought it was going to go to zero. They made a bet 5 years ago, whether or not 10% of Americans would be using Bitcoin at least once a month, and they finally got the results today:
GOLDSTEIN: As promised, we went out and got Ipsos, a real polling firm, to ask 900-and-some Americans - a representative sample of Americans this question. Have you purchased anything using bitcoin as your payment in the last month? The percentage of Americans who said, yes, is three - three.
HOROWITZ: All right.
GOLDSTEIN: Now, they did ask those people - the people who said they had, they said, at what merchant did you make the purchase? And I have some of those answers. And it suggests that the 3 percent is a little high.
HOROWITZ: Yup.
GOLDSTEIN: If you go down this list, somebody said Gaia Ethnobotanical, which I looked up - in fact, does accept bitcoin. Subway - I think some Subways accept bitcoin. But there's also a bunch that say - this one says Litecoin. A few say Coinbase, which is a bitcoin cryptocurrency exchange. So these people are using bitcoin to buy other cryptocurrency.
Horowitz ended up admitting to something that a lot of people on this sub have been saying for a while as well:
KESTENBAUM: That's what Ben thought would happen with bitcoin. He thought the code that powers bitcoin would just get better and better and, very quickly, it would obviously be this safer, faster, more private, cheaper way for people to buy stuff online. That did not happen.
GOLDSTEIN: No. Bitcoins just became so valuable that the people who worked on the system didn't want to make it any better. They just wanted to lock everything down and keep it the way it was.
HOROWITZ: I think that what happened with bitcoin is that there is kind of one very, very strong need among the kind of investors/miners, which is that the code and the meaning of the code would not change.
And Salmon, the guy who bet against Bitcoin, hits on the real paradox of Bitcoin:
SALMON: I - honestly, I was looking back. I mean, there were two things which I expected would happen which didn't happen. One is I expected the price would probably go to zero, and it didn't. It went way up and to the right.
And the other is that I expected that there would actually be use cases over the following five years that, even if people weren't using it to buy stuff in stores, and that was my side of the bet, I imagined it would be used for remittances, or, somewhere along the line, it would have evolved. Especially if it had grown to be worth thousands of dollars per bitcoin, then it would be used for something.
GOLDSTEIN: So it's more valuable and less useful than you thought.
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Waiting for Bitcoin to get boring Felix Salmon

http://blogs.reuters.com/felix-salmon/2013/11/30/waiting-for-bitcoin-to-get-boring/ Extract: "The latest bright idea from Alderney — that the tiny island (population: 1,900) should print physical bitcoins backed by electronic bitcoins — is certifiably bonkers. For one thing, the whole point of bitcoin is that it isn’t going to suffer the same fate as all those currencies which the government promised were backed by something else. (The dollar was backed by gold, once; the Argentine peso was backed by the dollar. Neither lasted, and if the burghers of Alderney ever change their mind about the bitcoin backing, or it gets hacked or stolen, the owners of the physical bitcoins are going to have no recourse.) More weirdly, the Alderney bitcoins are going to have about £500 worth of gold in them, which makes no sense at all. Let’s say that the gold in the coin is worth $800, while the bitcoin backing it is worth $1,000. What, then, would the coin be worth? It can’t be much less than $1,000, at least as long as it can be redeemed for an electronic bitcoin, or a bitcoin’s worth of pounds sterling. But by the same token, it can’t be worth much more than $1,000, because numismatists don’t tend to value gimmicks very highly, so it’s not going to have significant value as a collector’s item. And the most you could sell it for, in terms of its fundamental value, is the value of one bitcoin. Which means that there’s no point whatsoever in pouring £500 worth of gold into it — the gold doesn’t increase the value of the coin at all. All of which is to say that the FT is splashing all over its front page a crazy bitcoin scheme which is never going to happen. “An independent company will provide the Bitcoins,” explains the newspaper, credulously. “If the price plunged, neither Alderney nor the Royal Mint would lose anything.” But what independent company would ever do such a thing? The company would essentially need to hand over its bitcoins to Alderney, would probably have to help fund the cost of manufacturing the coins out of gold, and would get essentially nothing in return for the huge risk it was taking that all its coins would become worthless. The news here, then, is not so much that there’s some new cockamamie scheme involving bitcoins — a new such scheme is dreamed up every day. Rather, it’s the way in which the bitcoin bug has infected news editors to the point at which they’ll splash any old vaporware silliness all over their front pages. One of the less reported aspects of the bitcoin story is the way in which editors tend to be much more excited about it than reporters, who are generally more skeptical, and who worry that their own reporting will only serve to inflate the bubble even further."
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Bitcoin Going INSANE - Should You Buy Now? bitcoin news and a short ramble SCARY: Bitcoin 2013 vs Bitcoin 2018 SHOULD YOU BUY BITCOIN NOW? [6 REASONS TO BUY  The Halving] Bitcoin: 10K NEXT OR MAJOR REACTION CRASH?!

Felix Salmon. Articles From This Author. OPINION. ... Salmon: The Bitcoin Bug Bites SecondMarket. By Felix Salmon. ... Why the Internet Is Perfect for Price Discrimination. By Felix Salmon. Sep 10 ... By Felix Salmon. November 30, 2013. ... Check out these three one-year charts of the bitcoin price: The first chart is the year to June 2010; the second is the year to April 2013; and the third is the current chart. Without looking at the y-axis, they’re basically identical. A few days ago, the value of all the bitcoins in the world blew past $1 billion for the first time ever. That’s an impressive achievement, for a purely virtual currency backed by no central bank ... 1) Felix Salmon has a nice analytic essay about the rise of Bitcoins and what they say about the future of currency. Here are two key passages: Here are two key passages: Felix Salmon’s Bitcoin FUD. Felix Salmon has a very good job. He gets paid—and paid well—to pretend to think. He’s very good at it. You have to respect anyone who’s good at his job. But if by some misfortune you are actually capable of thinking for yourself and, worse, enjoy it, you cannot have Felix’s job or any job like it.

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Bitcoin Going INSANE - Should You Buy Now?

Close. This video is unavailable. xrp bitcoin price bitcoin crash vechain price prediction cryptocurrency btc eth litecoin ripple cardano cryptocurrency news monero My Website - Learn To Trade Crypto Like A PRO! Bitcoin is taking off and its for good reason, should you buy Bitcoin now or wait? Disclaimer: We are ambassadors or affiliates for many of the brands we reference on the channel. As an Amazon ... Felix Rex Recommended for you. New; 12:22. THIS BITCOIN CHART IS MOONING and nobody is talking about it!!! - Duration: 10:49. ... 🔵 $211,000 Bitcoin price - Jan 2021 - Duration: 17:06. Bitcoin-Price Crypto Fundamental Analysis 1,093 views. 20:41. ... Ben Felix Recommended for you. 9:39. 20 Habits of Highly Successful (and Wealthy) Traders - Duration: 40:13.

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