Wednesday, December 6, 2017

Is Bitcoin Like Using Cheese for Money?

At the post, Bitcoin Comments for the Record, Unkown leaves the following interesting observation:
In fact, the failure of Bitcoin's utility during a power outage or SHTF scenario would speak to the requirement that real money be DURABLE; It's why cheese or beef jerky were never valued/used as money, as precious as those things are.
And Cory Brickner adds:
 A lot of these comments sound like people responding to Peter Schiff when he was talking about the economy and the housing bubble in 2006 and 2007.

The fact that people are in such denial about what constitutes money and the block-chain is having problems facilitating that, along with the fact that people are not using it as money but as a speculative asset are alone very real problems for the value of Bitcoin.

This doesn't even address the fact of the government intervention coming down the line.


  1. I completely agree that government intervention is the greater risk in BitCoin, but I think the cheese analogy is poor. BitCoin does not spoil like cheese or beef jerky. A better analogy would be storing your gold in the jewelers vault. If the jeweler is on vacation, you temporarily can't access your money. If the SHTF, you likely cannot access your BitCoin, but it will be there when the grid is restored.

  2. I don't follow the power outage issue. If there were no power, ATMs wouldn't function, and it would be as difficult to use mobile and Internet banking apps as it would be to use Bitcoin. I suspect credit and debit card networks and point-of-sale terminals would also be impacted. If you kept your gold with a safe storage facility, it's possible they would rely on electricity for at least part of their operations too.