Thursday, February 27, 2014

OUCH! David Weidner Slams Bitcoin

The WSJ columnist writes:
This is no way to run a currency.

The bitcoin panic this week sparked by the disappearance of Tokyo-based exchange Mt. Gox rattled the so-called cryptocurrency markets. At one point Monday, bitcoin value fell more than 20% in just a few hours. It has since stabilized, if you can call it that, to around $550. Bitcoin is trading at $578.80 as of this writing – oops, make that $584.40…

So, assuming it stays somewhere near that level, it’s either up 1750% in the last year, or down 53% from its late-December high. In other words, stable as a Richard Sherman interview or Vic Wild’s nationality.

This isn’t intended to make fun of bitcoin or its evangelicals. They make their own fun. We just watch[...]

In the end, bitcoin as an “alternative” currency is much like “alternative” music. It works for people with a narrow set of tastes, some who simply just want to be different. Dollars, like top 40 radio, may have its limitations (I’m looking at you, Drake), but it’s what most of us can agree on.

Bitcoin may indeed become the currency of the future. But today it’s like an indie band that always seems to use the wrong chord (hello, Arctic Monkeys).


  1. This is the same attitude that people had that didn't understand the Internet in the beginning. Bitcoin is revolutionary. It survived price crashes and DDOS attacks and always bounced back. It is proving it's resilience. Any your comment about volatility, I don't know if you have any background in Financial Services, but if you do, you know that anything with a small liquidity pool is inherently volatile. The volatility is to be expected.

  2. "Bitcoin may indeed become the currency of the future." Holy hell! Is this the first time Wenzel has acknowledged that just maybe Bitcoin may be a world-changing innovation? Bookmark this post!

  3. Stopped reading at "This is no way to run a currency".

    1. Indeed. The vast majority of journalists are completely incompetent assholes.

  4. I've always liked Arctic Monkeys. Seriously.