This CATO blog post from December 11, is drawn from the work of Kevin Dowd, the author of a recent publication, “New Private Monies: A Bit Part Player?”
While indicating an appreciation for the importance of cryptocurrencies, Kevin Dowd remains critical of Bitcoin’s future as a currency.
To quote the article:
There is, however, an important line to be drawn between the future of the technology behind Bitcoin and the future of Bitcoin itself, thanks to its notorious volatility.
Kevin is crystal clear on the distinction:
“Though the supply of Bitcoin is limited, the demand is very variable; this variability has made its price very uncertain and created a bubble-bust cycle in the Bitcoin market. Perhaps the safest prediction is that Bitcoin will eventually be displaced by alternative cryptocurrencies with superior features."
Gee, I wonder which altcurrency could fill those shoes?
The article is quite brief, to the point and will no doubt be encouraging for those following NuBits development.
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Let’s carry on with another CATO missive, a podcast from November 10, 2014.
To brutally summarize:
Bitcoin’s decentralization will fail.
The Bitcoin mining industry is a natural monopoly; the miner’s atomistic competition and a natural monopoly are inconsistent.
The mining firms will get bigger until there is an actual monopoly. (10 minute audio)
So it would seem CATO doesn’t care for Bitcoin, but here too the PPC/NBT POS network remains unscathed by CATO’s critical comments.
Hope this helps buoy spirits,
Cheers!