Don’t Buy Bitcoins

Don’t Buy Bitcoins? Another head scratcher but it’s all about opinion and risk taking

squarely rooted

Tim Lee has an interesting and slightly odd post about Bitcoin today. He notes, correctly, that despite wild fluctuations in the price of Bitcoins, the volume of transactions has been growing at an exponential rate, then comes to an odd conclusion – he’s not going to sell his Bitcoins.

Here’s why this is odd:

1) Bitcoins are useful. This is without a doubt true. But what they are useful for is sort of…odd. They’re not so much a true medium of exchange, like USD, as much as they are a medium for a medium of exchange, which is why Lee references Western Union. They’re not so much a way to get money from one place to another as they are a vehicle to get money from one place to another. This leads to the next point…

2) Despite the weirdness of forex markets (a discussion for a later…

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