All about Bitcoin | report from Jonathan Shieber from Goldman Sachs rightly separates the technology from the currency
A smart report on Bitcoin from Jonathan Shieber at Goldman Sachs. A well researched report that involves interviews with some very smart people, and comes to what I believe is the correct conclusion. Smart technology with promise, but never a currency. Worth the read for those with rose coloured bitcoin glasses.
So what is it? The short answer is that Bitcoin with a capital “B” is a peer-to-peer network that allows for the proof and transfer of ownership without the need for a trusted third party. The unit of that network is bitcoin with a little “b”. But agreement on the topic seems to end there;indeed, there is a deep divide between true Bitcoin believers and serious skeptics. We look at the range of wildly diverging views. So where does that leave us? With the conclusion that bitcoin likely can’t work as a currency, but some sense that the ledger-based technology that underlies it could hold promise.
Posner makes the point I did earlier that intrinsic payment support costs have not been absorbed by the Bitcoin implementation.
Posner points out that enhancing the convenience and, importantly, security of using bitcoin will most likely raise the cost of its use.