Posts Tagged ‘Bitcoin’

A BTC Bet

from Jim:

I think Moldbug has excessive belief in the power of the state. He thinks governments are always omnipotent, I think they are bluff and theater floating over a storm tossed sea of anarchy. A part of town where order comes from the police is an unsafe part of town. And if one is in that part of town, and feeling nervous, as one should, one ducks into a mall or a McDonalds for safety. That nervous people are inclined to head for the mall, not the police station, leads me to believe that attempts to demonetize bitcoins are likely to fail.

April 14, 2013admin 22 Comments »
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It’s On …

Erik Vorhees (to Buzzfeed):

“I trade [BTC] often, just not for USD. I don’t want it. Traditional currency is garbage…”

ADDED: Bitcoin super-gravity sucks in Foseti, AoS. … Jim.

ADDED: A surprisingly reasonable Bitcoin article at the BBC site (with Hayek given the last word).

April 11, 2013admin 40 Comments »
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The Future of Bitcoin

The latest guidance from US Leviathan’s Financial Crimes Enforcement Network (FinCEN) is a leaf ripped straight out of Moldbuggian prophecy. The target acquisition revealed in Administrators and Exchangers of Virtual Currency, section c. De-Centralized Virtual Currencies could not possibly be clearer:

A final type of convertible virtual currency activity involves a de-centralized convertible virtual currency (1) that has no central repository and no single administrator, and (2) that persons may obtain by their own computing or manufacturing effort.

A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter. By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter. In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency.

[See Fotrkd’s link feast in this comment thread]

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March 20, 2013admin 26 Comments »
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What is Intelligence?

The general cognitive factor (g), measured by IQ tests, quantifies intelligence within the human range, but it does nothing to tell us what it is. Rather, a practical understanding of intelligence — as problem-solving ability — has to be assumed, in order to test it.

The idea of intelligence, more abstractly, applies far beyond IQ testing, to a wide variety of natural, technical, and institutional systems, from biology, through ecological and economic arrangements, to robotics. In each case, intelligence solves problems, by guiding behavior to produce local extropy. It is indicated by the avoidance of probable outcomes, which is equivalent to the construction of information.

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March 19, 2013admin 26 Comments »
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Bitcoin Horror Stories

Bitcoin Dies, Moldbug ventures, perhaps sometime this year. Following a broad DOJ indictment for money laundering, targeting any and everybody remotely connected with the free currency, the “BTC/USD price falls to 0 and remains there.”

“[R]emains there” — how cute is that? Ph’nglui mglw’nafh Bitcoin R’lyeh wgah’nagl fhtagn.

Bitcoin simulates gold, and once ‘mined’ it lasts for ever. If it “falls to 0” it has to remain there, for eternity, because it can never be finished. It can die, but never be destroyed. It’s built for undeath.

‘Moldbug Monetary Theory’ attributes the value of money exclusively to speculation. If the speculators are terrorized sufficiently, BTC drops onto the flatline, and “remains there.” The market would be totally extinguished. What Mao failed to achieve, let alone sustain, USG would somehow accomplish, perhaps by exhibiting greater revolutionary ardor and ruthlessness.

Ruthlessness would certainly be necessary, for the obvious reason that flatline-BTC has zero downside risk. It’s a one-way bet that someone, somewhere, will re-animate it (“nothing is unstable” (thanks to fotrkd for the reminder)). If a genius was designing irresistible speculator-bait, zero-degree bitcoin would be hard to improve upon. It’s free, and it’s only worth nothing if the cops can secure the crypt flawlessly, and forever. Did anyone say ‘free money’?

Speculation messes with time, by bringing the future forward. If undead BTC were ever to be re-awakened, it already has been. Its economic potential flows back down the timeline, modified by a time-preference discount. The feedback becomes strange, and difficult to confidently calculate, but it works as a vitalizing charge, and the corpse unmistakably twitches. Whatever money at t0 is worth, if it’s anything at all, at t0-n it almost certainly can’t be zero.

The Necronomicon describes flatline-BTC with creepy exactitude:

That is not dead which can eternal lie,
And with strange aeons even death may die.

ADDED: An alternative take on Bitcoin and undeath from Yifo Guo, interviewed here (H/T Nick B. Steves, in this comment thread): “… the point is, the idea will never die. Even if bitcoin dies, an alternative will arise, one that addresses the vulnerability that was previously exploited. Then you get bitcoin 2.0.”

March 5, 2013admin 43 Comments »
FILED UNDER :Commerce , Horror
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Bitcoin vs Leviathan

Moldbug’s prediction: Freedom loses (as usual).

The question is this: Which dominates? The malignancy of Leviathan, or its incompetence? How radically can the metastatic cancer-phase State shape reality in conformity to its vision?

Bitcoin — which is essentially an experiment in Austrian monetary theory — provides the model test-bed in which this question can be lucidly decided. Its current rising fortunes only accelerates the decision. If Bitcoin can’t be stopped, Leviathan is exposed as a paper tiger.

The best way to make the bet, of course, is to buy (or short) BTC. Outside in has been too apathetic to put resources behind its hunches yet, but (for the zilch it’s worth) our intuitions run contra Moldbug on the topic. Compared to Cyberspace, where bitcoin is entrenched, the State is weak, unintelligent, uninformed, parochial, poorly designed, and — in each respect — getting ever more so, in both comparative and absolute terms. The truly stupendous idiocy of Leviathan thoroughly swamps its evil, as is demonstrated every time it tries to get something done.

The digital Outside, in contrast, is already far beyond recall. The germ of a free economy is under construction.

[UF on Bitcoin (June 2011) here]

March 1, 2013admin 108 Comments »
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