The cryptocurrency crowd is amazing. First they developed a currency which no one but drug sellers, money launderers and other selected criminal types use, then they promptly proceeded to steal as much of it as they could form one another while all along promising an imminent demise of the world financial order as we know it. Of course, to be replaced by Bitcoin or something like it.
But the most amazing part is that they just refuse to learn from reality, history, economics or anything really that is not related to the purely algorithmic aspects of cryptomoney. We’ve dealt with these issues often and at length before and I will spend no more time on them here. But I do want to quote Paul Krugman’s short comment on the Mt. Gox heist back in February, which is pretty much how I see the cryptocurrency guys:
Bitcoin was, of course, created in part to cater to libertarian dreams — to provide a way to store your wealth where governments can’t steal it through taxation or currency debasement.
And it’s true! Thanks to Bitcoin, you can instead have your wealth stolen by private hackers.
That’s all there is to it. Now, you would have thought that the disappearance of six percent of all bitcoins in circulation would have led to some soul searching among the crypto guys, or at least to some questions about the viability of their system. Well, you would…
In the real world, the Bitcoin crowd just kept on telling us how their awesome currency, free of any central-bank-type meddling, will, eventually, conquer the financial world and consign fiat money, credit cards and many other tools we currently use in our daily transactions to the annals of history. It is quite a spectacle to observe, if you have the time for it.
A case in point is the infographic below. Just behold and marvel. I will say nothing more.
Bitcoin vs. Banking. How Cryptocurrency Can and Will Disrupt the Current Financial System
Here is the infographic:
Source: Visual Capitalist.