25 Feb

The Mt. Gox Implosion Could Be the Ultimate Triumph of Unregulated, Free Markets

ImplosionYes, you read that correctly.

How could the destruction of the single, largest chunk of the bitcoin economy be good for bitcoin, and good for free markets?

How can a market value of anywhere between 20% and 30% of the dollar value of entire bitcoin economy going up in smoke  prove, finally, beyond a shadow of a doubt that purely free markets, unregulated from government intervention are superior in all ways to  government regulated, centrally planned economies?

Our starting point, because people will go here almost immediately, is the utterly baseless assertion that had bitcoin only been regulated, this sort of thing would have never been happened. Read more…

28 Jan

btc_burned_at_the_stakeIt sends a chill down your spine when you hear the news that somebody you had just met at a conference a few months ago, a like minded individual representing a global movement you are  in complete alignment with, was just arrested on federal money laundering charges,

The crime? Charlie Shrem, CEO of Bitinstant and Vice Chairman of the Bitcoin Foundation allegedly sold bitcoins to Silk Road users and then they used them to buy illicit drugs.

Follow that? The implication here is that you are now responsible for the second order actions of your own customers. Read more…

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26 Jan

canute-bans-bitcoinThe grotesque side-effects of years-upon-years of ZIRP are beginning to peek out from under the proverbial carpet that policy makers and apologists have continually swept them.

The easiest way to think of present-day monetary policy is as a coordinated centrally planned effort to suspend consequences by edict in a profound King Canute episode of economic folly.

As we’ve explored before, when interest rates are artificially suppressed, all money becomes “hot money” as it has to chase yield anywhere it can get it. (When the music finally stops I predict a forthcoming crisis particularly in seniors who have been hounded out of meagre fixed income returns and into “safe equities that will never go down because the Fed won’t it happen”).

So given the data points: Read more…

30 Dec

marmstrongI have been reading Armstrong since he was putting out the typewritten samizdat stuff from prison. He is a hard person to size up. I have a pet conspiracy theory (just a theory) that he cut some kind of deal to get out of prison in exchange for becoming a relentless gold basher on behalf of the powers that be ;-) [1]

Since he got out of prison and started his new blog, without playing too much of an armchair psychologist – I can’t help but detect a whiff of manicness to his posts (with a side-order of paranoia, although given what he’s been through, who wouldn’t be manic and a tad paranoid?) Read more…

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29 Nov

robert-hunt-1923-german-hyperinflationI just posted this in the thread Do you think Bitcoin is a safe store of value? on the Corner of Berkshire and Fairfax  (some of the smartest value investors you’ve never heard of frequent that board, it’s one of my favorite investing boards on the internet) and it occurred to me that it may have come across somewhat vitriolic and rant-ish for such a serious forum and it probably was more suited to a stand-alone post here:

Read more…