1 Year Later; Still on the BitCoin Fence

A year ago I was very critical of BitCoin, though I have since toned it down. The objection I initially raised what that aside from scarcity digital currency only had value in currency. The BitCoin itself (or rather the 1s and 0s existing on a magnetic drive) has no application outside of being a currency. Commodity currencies had uses outside of currency and would have a demand. Fiat monies, as bad as they are, had legal tender laws enforcing its value as a currency. I also had questions about the security of the BitCoin technology and since then I’ve come to see that such an endeavor would be futile.

Now that BitCoin is growing some roots and LiteCoin has started to grow as well, I’m back on the fence I originally was on at the time I initially heard of BitCoins.

I’m no stranger to digital currency. Those who remember me from the last decade remember when I had a full time job in SecondLife which also had it’s own virtual currency. Though that money is constantly inflated and mostly floats with the US dollar around 250-270 “Linden Dollars” per 1 USD. which is what it still is today. The idea of a monopoly firm controlling every aspect of the currency isn’t very flattering but it’s fine considering it’s mostly used to purchase digital land, pixel penises, and animal avatars. Just like BitCoin, you can buy drugs, but unlike BitCoin they will only get your video game dude high.

When people think BitCoin, they only think about SilkRoad (an anonymous site which is like an e-Bay for illicit drugs and other black market goods) which seems to get a good portion of the BitCoin economic activity. There’s things like website and podcast hosting that takes these digital currencies as well as a cornucopia of other goods from electronics, books, even tobacco.

The reason I’m not fully on board is the volatility of the market. Like it’s human counterpart, it’s young, dumb and full of cum (or LSD to be more literal.) In the last month we saw it rocket from $23 to $235 (which is what it trades at the time of this post.) I think this is another bubble and it will pop. I can’t understand how this could be sustainable.

I have set up 2 wallets. One for BitCoin and one for LiteCoin. I’ll take them if you want to throw me a few space duckets, but for me holding my breath as a viable alternative currency I shall wait until it matures and make a final call.

If you want to donate a few:
BitCoin: 13Y8ZnLQDEDWFQbYmRLvm2FRHJF7s8RbxT
LiteCoin: LMfcVjvNJBdU4NbyLebgYjrmwvNgUCwuy1