Bitcoin now at $16,600.00. Those of you in the old school who believe this is a bubble simply have not understood the new mathematics of the Blockchain, or you did not cared enough to try. Bubbles are mathematically impossible in this new paradigm. So are corrections and all else pic.twitter.com/go9v0w92zk
— John McAfee (@officialmcafee) December 8, 2017
I’ve got nothing against collectibles, and I have the Franklin Mint plates to prove it. But most of the little I know about economics I got from reading J.K. Galbraith, so whenever people start talking about Free money — guaranteed to appreciate!, the alarm bells go off. From the Washington Post:
Bitcoin soared past the $17,000 mark on Thursday, a dizzying run for a digital currency that was worth less than $1,000 at the start of the year and was once largely the preoccupation of technologists or those looking to avoid scrutiny to launder money or buy drugs and weapons online.
The fast rise — it has gone up more than 40 percent this week alone — is creating a buying frenzy among eager speculators around the world and helping push bitcoin into the mainstream. And it is also forcing U.S. regulators to grapple with whether to legitimize a product that operates outside the control of any government or financial institution.
The run-up in price comes as bitcoin enthusiasts prepare to reach a new landmark. On Sunday, a bitcoin product will trade for the first time on a U.S. financial market, making it almost as easy to bet on the virtual currency as oil, corn or the euro…
Uhhh… about bitcoin… it's actually ruining the planet.
The bitcoin computer network currently uses as much electricity as Denmark. In 18 months, it will use as much as the entire United States.
Something's gotta give. This simply can’t continue.https://t.co/KSmaCZLXh7
— Eric Holthaus (@EricHolthaus) December 5, 2017
…Much of the computer power sustaining bitcoin occurs at massive complexes – or farms – in rural China running on electricity from coal-fired generating plants in Sichuan and Inner Mongolia. Reporters from Quartz and Bloomberg visited one of the massive farms in August, and said it had eight warehouses containing 25,000 processing machines, or about four percent of the global bitcoin network.