In this podcast, I interview best-selling author Jeffrey Robinson, who recently released, "Bitcon: The naked truth about bitcoin." All you need to know about Bitcoin is in this interview and in the book--available on Amazon now.
Podcast details: Format: MP3. Length: 43:53 minutes. Rating: G for all audiences.
During our interview, Jeffrey and I touched on several different aspects of Bitcoin and those who have consumed the Bitcoin Kool-Aid. I call them "Bitcoiners" and Jeffrey calls them "The Faithful."
Mr. Robinson and I agree that Bitcoin is a pointless pursuit, with one exception: The Blockchain. However, as it stands now, the Bitcoin Blockchain has several problems. Not the least of which is that it isn't distributed, but rather it is replicated. Bitcoiners, alternatively, tout its decentralized and uncontrolled nature. They see these attributes as positive features. They shun banks because they're "controlled and centralized."
But as Jeffrey and I discuss, if my bank gets robbed, I still have all of my money that's in the bank. That doesn't sound like centralization to me. It sounds like my bank is actually decentralized. If I lose my wallet, I don't lose all of my money either, because my bank still has my money. I only lose what cash I have in my wallet at the time. My credit cards are also protected from fraud.
There are no such protections with Bitcoin. If you lose your wallet, or it becomes corrupted, you've lost all your Bitcoin. There are also no guarantees or backing for Bitcoin. Bitcoiners claim that no backing is positive. That's a very odd stance, indeed.
So, you have a "currency" that has no owner, no distribution point, no intrinsic value, no guarantees, and no support. That doesn't sound like a viable currency to me. It's not even a viable unit of exchange in that it has no real value. The only value it has is the value that investors give to it. And most of the people who hold Bitcoin are investors. The amount of Bitcoin in circulation is very small in comparison to the ever-shrinking amount available for exchange.
There are a lot of problems with Bitcoin and I hope that Jeffrey Robinson's book and this podcast shed some new light on it for those who are still "on the fence" about this pseudocurrency and its band of merry followers.