Now the fiat dollar guys are starting to get concerned. They say that Bitcoin is a bubble (it very probably is) and that in the end it won’t matter anyway.
OK, but now we’re hearing calls for heavy regulation from some of the Bitcoin “skeptics” and from the deeply statist Stiglitz for outright prohibition?
If anything this only makes Bitcoin more interesting. The old guard is starting to feel challenged. It’s worried. Even if Bitcoin blows up that alone has got to make one smile.
Stiglitz incidentally is known for praising Venezuelan economic policy, just so you know where he’s coming from.
“It’s a bubble that’s going to give a lot of people a lot of exciting times as it rides up and then goes down,” he said. “The value of a bitcoin today is expectations of what the bitcoin is going to be tomorrow.”
And even though bitcoin is a decentralized network, with participants scattered around the globe, Stiglitz seemed to think Washington could easily nip it in the bud.
“If the government says ‘the reason bitcoin is being used is circumvention,’ they could close it down at any moment,” he said. “And then it collapses.”
An interesting question however is, “What if the government moves to kill Bitcoin and it can’t kill it? What then for people like Joseph Stiglitz?”
Though we agree that Bitcoin looks plenty bubbly, it should be noted that old Stigz is afraid fundamentally that people like him are losing control of the money. He fears the democratization of money. If one listens to the attached video he wants to totally kill cash. He’s afraid Bitcoin might just allow people some degree of freedom with their money, and this just as the state was closing in on cash.
Interesting for a guy who says he’s on the side of The People.
He isn’t of course. He’s for the state. He’s for control. He’s for management of the herd. (Of course he’s one of the managers.) He simply will not have wildcat money screwing up his dream. What’s worse, he may not really understand what is going on around him. And that is an uncomfortable space for some economists. What if the world just passed the esteemed lever pusher by? That is a fate too horrible to comprehend. (For the Stiglitz.)