Matt O’Brien in The Washington Post:
If Bitcoin were a currency, it’d be the worst-performing one in the world, worse even than the Russian ruble.
But Bitcoin isn’t a currency. It’s a Ponzi scheme for redistributing wealth from one libertarian to another.
[…] Bitcoin hasn’t just fallen 76 percent the past year. It’s fallen 36 percent the past two days, as you can see below, with a 24 percent decline the past 24 hours. It’s too bad Bitcoin doesn’t have a central bank to help stabilize its value.
Vooral de professionele miners zijn de klos:
Bitcoin prices are so low, you see, that miners are spending more money running their supercomputers than they’re making from new coins. So why are they still going? Well, they have dollar debts that they need to pay back, and where else are they going to get the money? They’re stuck, in other words, in a catch-22: they can’t afford to keep mining, but they can’t afford to stop mining, either. (This, coincidentally, is the same dilemma that oil drillers who borrowed a lot during the boom face now during the bust). This has already forced one big mining group into default. And it’s forced the rest to sell the only assets they have—Bitcoins—to pay back their dollar debts. That, of course, only pushes the price of Bitcoin down even further, which makes even more miners sell their Bitcoins to pay back they owe as mining becomes more unprofitable. And so on, and so on.