Are Bitcoins Becoming Europe's New Safe Haven Currency?

[Peter Surda]

18. Fail

You fail to address my points, and just add more errors. Bitcoins are goods because they have economic utility. They provide a decentralised method of transferring money at low cost. They are a pure network good, similarly as language or the internet.

The scheme that funnels wealth out of gullible users is fiat money and fractional reserve banking, not Bitcoin. Fiat money and fractional reserve banking form a pyramid, and if it overextends (too much debt or too much base money) it collapses. Bitcoin, on the other hand, would only collapse if there was an alternative that out-competes it on transaction costs, or if the network effect of the preexisting money was too strong. Noone has the magical ability to create new Bitcoins out of nothing, or by monetising debt, so the analogy with John Law is a fail.

Noone is forcing you to buy Bitcoins, neither can I recommend it. I am a researcher, I refute erroneous claims, I don't tell people what to do.