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bitcoin is not money

There has been a recent interest in the libertarian community about bitcoin an alternative currency that is apparently sweeping the internet. With this development it has become rather fun to watch Austrian Economists trip over themselves trying to defend Bitcoins as actual money instead of the fake monopoly money that fiat currencies like the Dollar are. The author is right that Bitcoins satisfy most of Mises's regression theorem, they are divisible, store easily, and homogeneous, and they are almost impossible to counterfeit. The other article is correct in that it has value and is scarce. They forgot one crucial part though, the way value is determined of a money, its value as a commodity BEFORE it became money. Gold, silver, salt, they all had and still do a use outside of money and that is how their value is determined. Bitcoins are designed from day one to be money and nothing else. That doesn't mean Bitcoins are bad and should be abandoned though. While Bitcoin is not real money it still is ten times better than that Currency we are legally required to use(I won't name names). For one and the most important point, its entirely voluntary and private, that alone makes it better than government money. Also, unlike the Helicopter Ben's mad cocaine fueled run of the printing press that creates Dollars in staggering amounts combined with the legalized Ponzi Scheme of Fractional-Reserve Banking that the bank cartels are engaged in, Bitcoins are tightly controlled, 21 million is the max amount that will ever exist and it takes a lot of computing power to generate them, so inflation is very under control. Part of the reason why Bitcoin shines and better currencies like the liberty dollar failed is because of it not adhering to the regression theorem. Bitcoins are just 1's and 0's tightly encrypted and anonymously traded on the web, there is no central issuing authority to take down, the government really has no hope of eliminating it so why even try? With the Liberty Dollar and E-Gold though, there has to be a central vault open for auditing so people know there is actually gold, and that is what the government can take down. It happens to any gold currency that gets popular now, and will probably happen to Pecunix, the currency I am most fond of, if it gets popular. So to summarize, Bitcoin is a great tool to voluntarily trade and use instead of the Dollar while we are in a monopoly money system, it is great and beautiful that people are finding alternatives to coercive government monopolies, hell, im even thinking of using it.(along with pecunix) but it is not money, it will never be money, and in a true free market where all currencies can compete in the open it will almost certainly loose to real money.

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