Friday, April 5, 2013

Bill on Bitcoin

After Bitcoin was explained to him in an interview, Still said:

"So, it's a technocratic plutocracy."

UPDATE: Or a technocratic pyramid scheme:

"That means that if you were one of the early adopters you get paid through the difficulty of those who attempt to mine coins later!  That is, your value increases because the later person's expenditure of energy increases rather than through your own expenditure of energy.  If that sounds kind of like a pyramid scheme, it's because it is very similar to to how the "early adopters" in all pyramid schemes get a return -- your later and ever-increasing effort for each subsequent unit of return accrues far more to the early adopter than it does to you!" --Karl Denninger

 Read this excellently sane and knowledgeable article by Karl Denninger: BitCon: Don't

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