As reported by CNN today, Bitcoin value has tumbled by more than 50% since November. Perhaps because of the alleged theft of $400 million in bitcoin by North Korea. As a reader of my blog, you should know I am no fan of virtual currencies that treat trust as non-discretionary. For trust is earned, not given.
So, think about a loss of trust of more than 50%. Would you trust a friendship if that friend could only be trusted less than 50% of the time? Would you trust a friendship when any commitment of that friend does not back up that friend’s advice?
All currencies are subject to the trust we put in those currencies. Even the dollar valuation, when not correlated to the merit of improving human adaptability to nature’s entropy, ought to be frowned upon. But at least the dollar is backed up by assets we can qualify and quantify. Crypto does not deserve to be called a currency.