“Some critics (who are often proponents of hard money such as gold) object that Bitcoin is in a perpetual ‘bubble’ because it has no ‘intrinsic value.’ Yet these critics often seem to overlook just how much the exchange value of gold and silver is (and was) due to their use as media of exchange. Thus, if Bitcoin is currently in a bubble, then, by the same token, gold bullion in the year 1900 (say) was also in a massive bubble because it was trading for a far higher exchange value than could be explained merely by its industrial and ornamental uses.”
http://www.econlib.org/library/Columns/y2013/Murphybitcoin.html
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Tip Freedomwat.ch Staff with Bitcoin
Related posts:
Ten Reasons the U.S. Is No Longer the Land of the Free
Wendy McElroy: Death by Methodological Individualism
Arbitrary enforcement, secrecy, self-interest, and the loss of government legitimacy
The One Lesson to Learn Before a Market Crash
Their Propaganda....Our Propaganda
The Social Deterioration of Funny, Floating Money
Doug Casey Refutes Common Hesitations to Internationalize
Jeffrey Tucker: Life Without the McDouble
Jacob Hornberger: Master and Servant
The Real Reason Governments Are Killing Financial Privacy
Central banks that trade on the stock market [2013]
The Worst Law Most Americans Have Never Heard Of
John Kerry’s Tender Sensibilities
With Enemies Like This, Who Needs Friends?
Michael Scheuer: On Syria, Our interventionists ensure America’s luck is running out