Sometimes an article is so funny there’s not a lot to say about it; the headline speaks for itself.
I’ve warned readers for over a year that the bitcoin craze is unsustainable for a number of technical reasons. The limit on total bitcoin issuance makes it unsuitable for money; a useful form of money needs to have some elasticity in order to grow with an economy and support healthy bond and credit markets.
Of course, too much elasticity is also bad as we can see with central bank money printing. That’s why I like gold as a form of money, because the above-ground supply grows naturally at about the rate of population and economic growth and is outside the control of central banks.
The other problems with bitcoin have to do with high costs for transactions due to the clunky blockchain size and unsustainable electricity usage for mining and blockchain validation. The critics tell me I’m all wrong and continue to tout the virtues of bitcoin.
As this article shows, reality has a way of catching up with bogus cheerleaders. A major bitcoin conference scheduled for Jan. 18–19 had planned to accept bitcoin in payment for conference attendance fees as a demonstration of the versatility of bitcoin. Guess what?
The conference sponsors just announced they are stopping the acceptance of bitcoin. Why? Because of high costs and system congestion, exactly the limitations I have been pointing out.
The conference is in Miami Beach, a lovely venue this time of year. I hope the conference attendees have a great time in Miami as they use MasterCard and Visa to pay in dollars to discuss the future of bitcoin.