I have not been following the development of the Bit Coin,
 simply because I see it as a fad. Now I'm wondering if it isn't
 more a fraud.

 Paul Krugman wrote up a bit on the tech behind it, and a writer
 for a popular magazine wrote up an assignment to do all her
 Christmas shopping with one Bit Coin.

 It appears one Bit Coin is worth more than $800 dollars.

 The Bit Coin does not exist in the real world, it is a tech
 fiction, Fiat Money writ large.

 The only way a Bit Coin gains value is by people being willing
 to pay more for it, yet you get nothing for having a Bit Coin in
 itself.

 According to the magazine writer, she took three friends to an
 expensive restaurant that happened to take payment in Bit Coin.
 Well, happened to because the owner is one of the developers of
 the Bit Coin.

 When it came time to pay the bill it took about 20 minutes to
 process it. Seems slicing one Bit Coin into small amounts is a
 complex process.

 Then I read a drug dealer was caught, and all his money is in
 Bit Coins, which makes them unfindable and untouchable without
 the pass word.

 Now if that dealer gets killed in prison, and hasn't given
 anyone else the pass word, what happens to all that money?

 The magazine writer said the value of a Bit Coin jumped 9000
 percent in one year. That's only by people coming into the
 system wanting to buy some.

 So, tell me, is the Bit Coin a money laundering scheme, a Ponzi
 Scheme, or both?



BOB KLAHN bob.klahn{at}bex.net   http://home.toltbbs.com/bobklahn

... But I have been able to inflict 40 winks at 50 paces.
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