Skeptics called bitcoin a scam for years. Eight years in, the skeptics are more prominent.
If bitcoin were a video game, we’re almost at the final boss.
If bitcoin ain’t money, why so much crime?
Bitcoin was and is the currency of global DarkNet markets, next generation peer-to-peer drug and goods bazaars. The FBI confiscated and sold bitcoin from one such market — the Silk Road — and two agents investigating the case are currently in prison for stealing bitcoin during the investigation.
Would anyone risk prison to steal something that isn’t valuable?
A couple of days ago, long-time Bitcoin developer and BitGo engineer Jameson Lopp was swatted. That is to say, someone called the cops, reported his address, and said “If I see any police coming toward the front door who aren’t handling a bag full of money, I’ll shoot them on sight…by my voice, you can tell I’m not in a mental health state.”
Anyone who hasn’t been living under a rock can understand the risk entailed when 15 armed officers responded to Lopp’s address.
Would anyone risk felony charges in an attempt to intimidate someone working on a worthless project?
U.S.-based bitcoin exchange Coinbase claimed to store 10% of all existing bitcoin in April of 2016. This translates to 1,540,000 BTC — worth $692,300,000 in April 2016, or $8.5 billion today [archive]. That’s the same thing as 230 tons of gold, or more gold than Belgium, the country with the 22nd highest gold reserves in the world.
Another order of magnitude bitcoin price rise and Coinbase will need to poach a Secretary of Defense.
Do people protecting no value need body guards?
Make no mistake, bitcoin is in position to replace today’s ruling institutions with decentralized protocols. Governments will fight back. I hope Coinbase has protections in place against United States bitcoin seizure and does poach a Secretary of Defense.
Proof of money? Bitcoin causes people to behave the same way money causes people to behave — good and bad. People don’t steal sand, Venezuelan Bolivars, or Zimbabwean Dollars. People steal money.
People don’t recruit global security experts for shits and giggles. They recruit them to protect money.
No matter what today’s financial experts have to say.
At the time of this post, 1 Bitcoin traded for $5,580 on Coinbase and 1 Bitcoin Cash traded for $342.50 on Kraken.