Sunday, January 26, 2014

Bitcoin Will Be A Fad

The Key West Botanical Garden has a new Cuban raft exhibit. It has eleven very unique rafts that were used by freedom seekers crossing the Straits of Florida. Some Cubans made it and some did not. By the looks of the rafts, their courage can never be questioned.

As a connoisseur of fine candy, I'm of the firm opinion that PEZ is the best candy ever. It's an Austrian company that started making this legendary candy in 1927. Cole and I loaded up his limited edition KISS band box set dispensers this morning. I've often wondered why they don't also sell the candy in large bags like M&M's? It is fun collecting some dispensers but the candy should be the emphasis.

Congrats to the Tosa Thunder winning Saturday's game to extend their record to 3-1. It's a strong team offensively and defensively.

Everybody seems to be asking questions about Bitcoin lately so I thought  I would provide my two cents. It's a digital currency and a payment system. It uses sophisticated encryption and has basically no regulations at this point. The transaction fee is very small and the transaction itself is almost impossible to trace.

It's estimated by various experts that approximately twenty percent of its transactions are used for black market activities such as drugs, sex trafficking and money laundering. Some legitimate retailers have been accepting bitcoins as of late. Rumors persist of a major auto dealership accepting bitcoins for a high end purchase. In truth, the dealership provided transportation for the customer to exchange bitcoins for U.S. dollars.

There's four major reasons Bitcoin will eventually fade into obscurity like the transistor radio. One, it's not backed by any governments. It's value solely depends on the willingness of others to accept it's stated worth. It's inflation just waiting to happen. Secondly, the federal governments will eventually target them as a probe of black markets and possibly Bitcoin customers themselves. Think NSA.

Thirdly, the major banks have already been outspoken against Bitcoin and will not become associated with them. Banks like U.S. dollars and will not accept anything with cheaper fees that cut into bank margins. Bitcoin totally violates the golden rule. Those that have the gold make the rules.

In conclusion, Bitcoin will eventually face some competition as there's no barrier to entry. Remember Beta and VHS tapes? The very last Bitcoin customers will get stuck with a nice shiny worthless coin collection to show off next to their worthless Beta tape collection!


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