Media coverage does funny things to people, it empowers public but amplifies exponentially that of millionaires and perceived successful people (Marc of course is the former!)... This type of posts is dynamite, and not in a good sense!
We are now in 2014 and trust is at an all time low... People are looking for alternatives... could Bitcoin be that alternative? I would argue NOT. Wisemen say don't get involved with things you don't understand, and this is true for bitcoin!
Bitcoin means a total lack of what I call the much needed 'TAT' (Transparency, Accountability and Trust) ie the lack of which led to the downfall of the banking system!
Fact: Even major value adding enterprising firms that are Rated, Listed AND Audited can still go bust by 4:45 pm any afternoon (consequently, their shares mean nothing and all creditors loose out..with no recourse.. directors might get a bad name for a short period of time). Surely it is madness for anyone to argue how some encryption codes are changing everyone's lives as a currency that has no visible people behind it, let alone any supporting 'underlying asset' or any promissory note from any government!?
Yes, bitcoin may be a great technology and it signifies a major goal posts..I agree with Marc.
But how would this be different (take the much touted technology encryption aside) logistically to using GE shares for transaction, or indeed using our own portfolio of shares.. I would argue using Warren's Berkshire Hathaway shares would be 100x better!
Note to other Tech Entrepreneurs or eBay mafia: might be an idea to create #StockKASH as a product? paying using shares in escrow but it would have to have some tangible underlying instruments?
Any share price that is highly volatile means that something is wrong with the company/asset... or it's a sign of a bubble. How does one rationalise the volatility of Bitcoin? How can we be sure that there is only a 'limited' supply of such coins!? We can be sure re physical assets or the issue of money by a Central bank through an official announcements (i.e. QE). But where is the Trust and Transparency regarding Bitcoin?
Why not spend Marc's $50m on something more important and long term, which would help fix the systemic issue of finance (although I appreciate this would take time and huge amount of money), as reported during FinTech City events this week in London. Almost all of the FinTech ventures worldwide are concentrating on doing something better/different, and also mainly towards B2C or B2SMEs.
The crowd lemming bandwagon behaviour of VCs that invest in firms that don't add real value to our world is just astounding. Their shackle of 5/10years return structure means sadly these types of bubble ventures like Bitcoin are perfect for creating firms for exit.
Strangest thing is that most FinTech firms are not really disruptive at all. In the most basic form, all the FinTech firms still use banks, payment processors (paying similar fees) and no one (sadly) is working on fixing the broken 'plumbing' of Finance nor fixing the mid-market plus value chain...
The multi-million, billion, trillion pension/insurance/rating/
Reality: All these types of 'good press' for bitcoin will hurt those consumers that end up losing badly in such high stake "pass the parcel game", which could 'explode' at any time.
I am glad that China took lead and banned the banks from transacting on bitcoin related trades (Dec.2013). Let's see which other country has good sense... Kudos that Alibaba follow suit!
But don't listen to me, listen to Nobel Laureate Robert Shiller, and Jamie dimon of JP Morgan, both calling bitcoin a bubble...
I just hope the public will not spend all their savings for the supposedly short term gain... $50m might be short change for Marc and ok to gamble, but the rest of us should stop and think twice when it comes to Bitcoin!