The Bankwatch

Tracking the consumer evolution of financial services

“Bitcoin, Magical Thinking, and Political Ideology” | Alex Payne

I recently posted my views on Bitcoin determining that it is some kind of asset class that is gradually becoming regulated as such.

Today courtesy of 7 Stories to Read this Weekend I came across this article. It is well written sometimes humorous and very deep. Worth the read.

Bitcoin, Magical Thinking, and Political Ideology  | Alex Payne

Most charitably, Bitcoin is regarded as a flawed but nonetheless worthwhile experiment, one that has unfortunately attracted outsized attention and investment before correcting any number of glaring security issues.

To those less kind, Bitcoin has become synonymous with everything wrong with Silicon Valley: a marriage of dubious technology and questionableeconomics wrapped up in a crypto-libertarian political agenda that smacks of nerds-do-it-better paternalism. With its influx of finance mercenaries, the Bitcoin community is a grim illustration of greed running roughshod over meaningful progress.

Far from a “breakthrough”, Bitcoin is viewed by many technologists as an intellectual sinkhole. A person’s sincere interest in Bitcoin is evidence that they are disconnected from the financial problems most people face whilelacking a fundamental understanding of the role and function of central banking. The only thing “profound” about Bitcoin is its community’s near-total obliviousness to reality.

And social commentary on the valley view of the world.

Silicon Valley has a seemingly endless capacity to mistake social and political problems for technological ones, and Bitcoin is just the latest example of this selective blindness. The underbanked will not be lifted out of poverty by conducting their meager daily business in a cryptocurrency rather than a fiat currency, even if Bitcoin or its ilk manages to reduce marginal transaction costs (at scale and in full regulatory compliance, that is). But then, we should note that Dixon wasn’t talking about lifting anyone out of poverty, just “offer[ing them] low-cost financial services”.

Written by Colin Henderson

December 21, 2013 at 20:33

Posted in Uncategorized

One Response

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  1. Myriad has initiated development of a new innovative platform which will be announced in the next 90 days to enhance the Bitcoin and cryptocurrency community. CryptoCafe is going to be big in the world of Bitcoin, be sure to sign up for the big release announcement. The website is owned by a public company called Myriad Interactive, the stock symbol is MYRY and its predicted to be very big!
    Myriad Interactive Media Begins Development of Bitcoin Platform CryptoCafe.com

    For more information and to read disclaimers and disclosures: http://finance.yahoo.com/q?s=myry

    Myriad CEO, Derek Ivany, told investors his team has initiated development of a new innovative platform that he expects will enhance the Bitcoin and crypto-currency community. “Our project is not just related to Bitcoin, but other crypto-currencies as well like Litecoin. We have been involved in the world of Bitcoin for the last year, and we are really excited about having the opportunity to bring forward a platform that could introduce the world of crypto-currencies to a much larger audience, on a worldwide scale.”
    Myriad Interactive Media is an interactive marketing and development firm based in Toronto, Canada. Myriad designs and develops customized marketing plans, social media marketing campaigns, pay per click, and search engine marketing. Our company also develops in house web & mobile applications.

    Have a charming day 🙂

    Kashfiya Rafa

    January 1, 2014 at 10:20


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