BITCOIN: Creative Destruction

If you haven't exchanged a form of fiat currency for bitcoin/alt-coin, then you basically have managed to sit on the sidelines during the coolest innovation of our times. The altcoin movement will be bigger than the change from horse pulled carriages to automobiles, mail to e-mail, dial-up to broadband... you get the point. Altcoins are a fabulous innovation that can cut transaction time from days to seconds.

These future currencies don't come without problems, the biggest being how unstable they can be, but that will change as people have less and less reasons to sell. Until then, this is true. At times, altcoins can seem to be driven by pump-and-dump traders; not investors or users. The volatility of these markets could make the strongest human bipolar.

For now, take a long position

Diversify

Then only throw as much money as you are willing to lose

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Bubbles: Cryptocurrencies, Dotcom, Tulips, USD

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Crypto, Monetary Policy, and Global Trade

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Running on Scarcity: An Argument for Bitcoin and Finite Supply

A world that uses Bitcoin (or another scarce cryptocurrency) as a base currency could create a better, more innovative one. One could argue that the velocity of money is driven by the demand for luxury goods and services. On top of that, an economy is only as good as the labour within it. The money hoarder will exchange the hoarded currency if there is a good or service that he/she desires. If there is no desired good or service, then there is no reason that the money hoarder should put his/her money back into circulation. This will give the markets a reason to innovate and create demand for luxury goods and services. There will be less complacency in the markets as companies and industries compete for your money. A historical example of complacency is the Spaniards post colonization of America. After the Spaniards colonized the Americas, they inherited vast amounts of gold. What was once a scarce commodity was less scarce. Instead of boosting exports to create more wealth, S...

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