29 Nov 2013

Money 2.0

litecoin-logo-192There’s been some recent excitement in cyberspace about a ‘new kind of money’. Some may be familiar with the term ‘Bitcoin’. Others are scratching their heads, whilst another lot are reaching for bottles of Valium and clutching their wallets, while lying spread eagle across their mattresses.

I expect to be warned about ‘Bitcoin’ and crypto-currencies, as if I don’t have any capacity to evaluate information and risk. Oh and I also expect to be called names. But when all that is done – reality still remains i.e. there is bitcoinssomething new in cyberspace – and it doesn’t look set to go away. There are now nine crypto-currencies.

Yep – a few are now off flapping madly like wild geese. I’m also about to be educated that Bitcoin is a hoax, that the FBI had investigated, and that it’s bound to be shut down as it is illegal. Of course the people about to educate me about this are likely to know bugger all and likely to think I’m trying to get rich quick. They will have quickly done the usual Google search and gotten into a flap even more, based on information they pick up – that is not properly evaluated. See here for Bitcoin myths. Do keep in mind that Bitcoin is one of nine crypto-currencies at the moment.

Have I been conned before? Yes.  Now – you are invited to  stop wasting your time reading this – because you know all this is a load of nonsense, you know I want you to invest money and you have none (even though I’ve said nothing about encouraging anyone to get involved in this). Bye Bye.

Why are you still here? Chrysst!!

Moving swiftly on – now that the crowd has left – crypto-currencies are pretty new. What’s been all the fuss about it? Well, it’s a thing that you cannot touch but it can carry value. Helloooooo.. that’s exactly like money on your credit card, or at your bank – you can’t touch it but you have it. Oh jeez… I’m now about to be told that you can draw money out of an ATM and hold it – as if I didn’t now this. You see how I’m infantilised. Well you can do the equivalent with cryptocurrency by turning it back into ‘solid’ cash if you want.

Why are crypto-currencies likely to be big? Well, first of all they are not really currencies. They are things that people attach value to. So if it was antiques on ebay, people would have no problem with it. However, once it’s on the internet, as some kind of weird thing for geeks, it’s bound to be yet another ponzi scheme in the minds of people. The reality is that anybody could attach value to any object and resell it. So one could attach value to a one-pound coin and sell it on ebay. How much do you think people would buy it for? I hope that’s not too hard a question.

For something that does not have a fixed value, it’s what the market is willing to pay based on perceived current value or future value. What is the value in crytpo-currency? It’s a way of moving value around globally, without the usual cuts to credit card companies and banks. Who would be interested in that? A whole bunch of people in the Far East, where ‘all the money’ is.  Oh you didn’t know…. that America owes China a few trillion. Oh dear. I dunno what to say. You gotta catch up.

Did I say it was not subject to being used for drugs, porn and money laundering? Any object that can converted in value, is at the same risk of being misused, as regular money.  In general anything that can be used for good can be used for evil. Think – where is the source of the evil? Is a gun an evil thing? Oh woooo… it’s been created by the will Devil!! Ooooo.. oooo.. let’s all flap around!!

Here’s the first big risk – and it will only happen to idiots – if you lose your computer, you lose your money!! What’s the problem? It’s very similar to losing your wallet full of cash. Ooohhh.. but once it’s a computer.. hey hey..losing that is very very different. Of course it is – especially  worrying if the computer with Bitcoins had £4 million worth of electronic money on it!! Crypto-currencies do not provide a cure for stupidity – I feel compelled to say. See below:

Oh - you noticed. There are no links in this post as to how to get crypto-currency. Some will have concluded that I'm selfish and keeping it all to myself - that I'm stingy and arrogant etc. Spare me. I know what people will think before they think it. On the other hand some will know that my modus operandi is not to spoonfeed. Furthermore, if I do provide more information that leads to people taking actions and they then lose their money, they will surely blame me. Guess who is your friend? Well you know who is not.

To follow prices of crypto-currency see: Bitcoinwisdom. I’m about to be told, “It’s a volatile market, full of risk”. Thank you.

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