While trying to find out as much as I can about the BitCoin revolution, for my latest GoldMoney podcast I throw every conspiracy theory I could think of at Jon Matonis – of the BitCoin Foundation, and also a writer for Forbes magazine – and he comes up smelling of digitally encrypted roses…
Episode 118: GoldMoney’s Andy Duncan talks to Jon Matonis of the Bitcoin Foundation who is also a contributor to Forbes Magazine. They discuss Bitcoin’s latest price spike and whether crypto-currencies are a credible alternative as a medium of exchange.
Though the price for Bitcoins has risen from $15 to $95 at the time of the podcast, Matonis does not think that it is a speculative bubble. With a fixed supply of Bitcoin and rising demand – in part due to fears related to Cyprus — surging prices are only logical. As there is no futures market for bitcoins yet, there is no leverage, which makes Bitcoin also suitable for investment purposes.
They discuss whether Bitcoin could become a serious rival to precious metals when it comes to alternatives to national currencies. He points to the complementary nature of physical bullion and Bitcoin. While Bitcoin has advantages in the digital world, nothing beats the security of tangible metal as it is not reliant on the existence of electricity and internet connectivity.
Matonis sees a bright future in crypto-currencies and especially values its possible impact on capital controls and taxes. For Bitcoin the important question will be whether it will be accepted by big merchants and whether governments will impose regulation against such acceptance.
This podcast was recorded on 28 March 2013 and previously published at The Euro Vigilante.