What's the Deal with Bitcoin?
Just last week, the price of Bitcoin was at a high of $1,200 and now recovering from a slight dip and rising again at $795. Still a far cry from a few months back when I met up with some local Bitcoin enthusiasts where I was being sold Bitcoin priced at $90.
2-month trend of Bitcoin spot price
It also shows intrinsically different libertarian principles are as compared to the current system we have. It's easy to be tainted as anti-poor when you are for capitalism but as much as they want to associate libertarian principles with the current crony-capitalist system we have, things like Bitcoin show how inherently different we are. Yes, we like money but money that isn't dictated and controlled by a select few. We want money to be sound, honest, and competitive.
And I think it is much easier to communicate this message because of Bitcoin. FA Hayek, for instance, talked a lot about competing currencies but, I believe, it was much harder to communicate that advocacy back when all we had was gold and other precious metals. And that's another thing I love about Bitcoin: it shows that our obsession with gold is not just any sort of materialistic desire for a shiny rock but an inherent philosophical preference for people to be able to choose.
(SEE ALSO: Who are Libertarians and Where are They in the Political Spectrum?)
BUT not all libertarians are joining the bandwagon. People like Peter Schiff are still extremely skeptical of Bitcoin:
He makes a very strong case for gold having inherent value. And we all know Peter Schiff is a force to be reckoned with when it comes to these kinds of speculations being that he predicted the housing bubble and recession in the US and no one listened to him.
But then master of debate and philosophy Stefan Molyneux comes to the rescue of Bitcoin in their very interesting debate here:
Molyneux focuses on how free Bitcoin is as a potential currency. Even a majority of gold is in the possession of governments. He also points out that Bitcoin is so new and innovative that it only makes sense why it can't compete with the historical market choice for currency which is gold. Also, Schiff points out the potential of having a gold-backed digital currency.
My take on it, if all you're thinking of is making money then you are at a some sort of risk. One must understand the philosophical principle behind alternative currencies and how we can protect our earnings against government controlled inflation.
In spite of this, I believe that the dips in the spot of Bitcoin are buying opportunities. Bitcoin is not even as popular as I expect and I think there's a lot of room for growth. For me, the hype hasn't peaked. Most people think of it only in terms of the controversial Silk Road. Many, still don't even know it exists. Personally, I'm very optimistic about how it can change governance and benefit society.