Fiat vs Bitcoin, a comparison.

Saturday, 16 February, Year 5 d.Tr. | Author: Mircea Popescu

In fiat :

  1. Berkshire announces surprise acquisition of Heinz.
  2. Heinz stock soars 20%.
  3. SEC goes through list of options holders on Heinz, orders freezing of assets of anyone that made money on the deal and wasn't on the politically-approved list as sent over by Berkshire.
  4. Some people in Zurich, Switzerland (not a part of the EU, not a part of the US) end up with their assets frozen, to the tune of about 1.7mn dollars (~63`000 BTC).
  5. Anonymous coward speaking as if for the SEC but without assuming any responsibility informs that "the suspicious traders will now have to make an appearance in court to explain their trading if they want their assets unfrozen".

Source : CNBC.

In Bitcoin :

  1. Well known scammer finally declares default, probably proceeds to sell stash of Bitcoins as part of plan to crash the market, rebuy on the cheap and exit.
  2. People with very likely knowledge of exact timing make large option bets on MPEx.
  3. Market fails to crash, but insiders likely ride to the top and then short to the bottom for a net profit somewhere between 5 and 10k BTC.
  4. MPEx representative shrugs, goes on the record telling the market to collectively grow some brains, stop giving Bitcoin to scammers.

Source : Trilema.

There is a reason Bitcoin will crush fiati. It's not the bursting of the inflationary bubble, even if that alone would be enough. It's not the solving of the otherwise unresolvable security problem of fiat banking, even if that alone would also be enough.

It's simply that in any competition between two systems, the one that preserves property rights will completely crush the one that does not. This isn't for any ideological reason, it isn't because "the people" like it more or trust it more or prefer it or anything of that kind. The people don't even enter into the discussion at all. The system which doesn't preserve property rights is less of a system, and consequently doesn't have a prayer - the entire thing becomes a comparison between a warm body and a not so warm body to see which is warmer. Duh.

PS. To the general population of Bicoin detractors : one day when you're finally done constructing strawmen out of Bitcoin's fringe you might actually grow some balls and graduate to tackling core issues, such as for instance these discussed here. Time is ticking away, in the sense that during the past four years there's not yet been an actual criticism of Bitcoin published by anyone anywhere, in spite of a lot of ridiculously uninformed gargle being regurgitated wherever the brightly stupid meet. If you wait much longer I'll have covered the whole field and there won't really be any room to even try anymore. Hurry up, clocks are ticking away.

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  1. For the record, this bet is still open. []
Category: Bitcoin
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