Following the Mt. Gox takedown, I acted as referee between Doug Casey, of Casey Research, and Jon Matonis, of Bitcoin Foundation, as they discussed the relative merits of two free market monies, gold and Bitcoin. It was a great contest.
Episode 121: Doug Casey of Casey Research debates e-money researcher and “crypto economist” Jon Matonis on the virtues – or otherwise – of Bitcoin, and how it compares to gold as a form of money.
Casey, a Bitcoin sceptic, notes that Bitcoin satisfies Aristotle’s definition of what constitutes “good” money in all but one important aspect: that it doesn’t have value in any kind of non-monetary sense, unrelated to its use as a medium of exchange. This is in contrast to precious metals, which have unique chemical properties and uses in an industrial context.
Matonis argues that this is unimportant set against Bitcoin’s strengths: notably the ease of transacting in them and its decentralised nature, meaning that there is no central point of attack for its enemies (whoever they may be). He also points out that – unlike gold – physical confiscation of Bitcoin, a la FDR in 1933, is for obvious reasons impossible.
This podcast was recorded on 11 April 2013 and previously published at The Euro Vigilante.
I just wanted to point out an objection to the “electricity and internet going down” portion of this debate: Bitcoincard technological development will prove this objection irrelevant.
This is an amazing Podcast Debate! I enjoyed it to the fullest. Bitcoin will still be apart of my portfolio and may not provide any value other then a solid exchange with people at the moment. But I feel we need to move ahead into the digital age and hold on to the Gold and silver until Bitcoin gains solid ground. Singularity that was mentioned will be the killer for Rare metals if it does happen- Bitcoin will take the throne. Thank you again for the great debate, it covered a lot of the confusion surrounding Bitcoin and it’s clones. I don’t feel an announcement of who made the currency will effect the judgement of Bitcoin. It all comes down to how many people are using it. The merchants who are accepting it. If people can use Bitcoin to buy groceries, pay bills online and purchase clothes who care’s where it came from. The fact that it can be used as an exchange with anyone in the world oh, and not restricted from government is a big winning factor for Bitcoin among many.
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