Search Adam Smith Hates Bitcoin There have been many good pieces written on the dubious economics of Bitcoin; I especially liked this one by Neil Irwin.One thing I haven’t seen emphasized, however, is the extent to which the whole concept of having to “mine” Bitcoins by expending real resources amounts to a drastic retrogression — a retrogression that Adam Smith would have scorned.Smith actually wrote eloquently about the fundamental foolishness of relying on gold and silver currency, which — as he pointed out — serve only a symbolic function, yet absorbed real resources in their production, and why it would be smart to replace them with paper currency: The gold and silver money which circulates in any country, and by means of which, the produce of its land and labour is annually circulated and distributed to the proper consumers, is, in the same manner as the ready money of the dealer, all dead stock.It is a very valuable part of the capital of the country, which produces nothing to the country.

The judicious operations of banking, by substituting paper in the room of a great part of this gold and silver, enable the country to convert a great part of this dead stock into active and productive stock; into stock which produces something to the country.The gold and silver money which circulates in any country may very properly be compared to a highway, which, while it circulates and carries to market all the grass and corn of the country, produces itself not a single pile of either.The judicious operations of banking, by providing, if I may be allowed so violent a metaphor, a sort of waggon-way through the air, enable the country to convert, as it were, a great part of its highways into good pastures, and corn fields, and thereby to increase, very considerably, the annual produce of its land and labour.And now here we are in a world of high information technology — and people think it’s smart, nay cutting-edge, to create a sort of virtual currency whose creation requires wasting real resources in a way Adam Smith considered foolish and outmoded in 1776.

One of the true pioneers of modern economics, Adam Smith, is best known for his two classic works; The Theory of Moral Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations (1776).Some call him the “father of modern economics), but I like to remember him more as The Man with the “Invisible Hand”.In his book, the Wealth of Nations, Smith wrote; “Every individual necessarily labours to render the annual revenue of the society as great as he can.bitcoin anarchyHe generally neither intends to promote the public interest, nor knows how much he is promoting it … He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.china bitcoin documentaryNor is it always the worse for society that it was no part of his intention.litecoin iphone app

By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.I have never known much good done by those who affected to trade for the public good.” If the 2nd gen biofuels, in research phase at the moment, have some major breakthroughs and are successful in developing a fuel, which is cheap in production, does not require major modifications in cars, and is HIGH IN DEMAND (used caps and bold for the extra height), will someone be ready to exploit this avenue for personal gain, but, will also be promoting the collaborative interest of the biosphere.armory bitcoin safeThis analysis, seen through time, just might be the most accurate ‘calculation’ of the human psychology, but, at least on a personal level, it paints a pretty sad picture.ethereum news calendarAs, if we are to agree with Smith’s theory, it would mean that; But it does not end there.circle bitcoin funding

There is a flip side to the proverbial “coin”.Because if we are agreeing with Smith’s theory, we are also to assume that there would be ‘individual goals of men’ which would have personal gain for some men at the cost of collective loss of many others.Unfortunately, this analysis, as sad as it sounds, is also true for most all individual goals, and I think, Adam Smith, was definitely aware of it, but just chose to show the shiny side of the coin.bitcoin casino earningsKeeping Smith’s Invisible Hand in mind, let’s look at the latest in modern economics.ethereum nvidia 1080With the introduction of bitcoins, in 2009, dawned the age of cryptocurrency.bitcoin cost timelineThe currency came with ideas some would call ‘Utopian’, like transparent block chains.

How long this age lasts is yet to be seen.One of the main reasons cited by economists for the fall of bitcoins, or any kind of cryptocurrency, is a theory which is something like as follows; Let’s assume the first bitcoins are sold at $1/ea.So, the 1st generation of cryptocurrency users buy this freshly minted coin for $1/ea.At this point, another cryptocurrency company, the Bitecoin Company comes along.With its advanced algorithms equipped with deflationary pressures, the Bitecoin Company offers to sell you bitecoins for $1/ea.Now, bitecoin is cheaper but it may buy you less on the other side of transaction as well.Nevertheless, you buy some newly minted bitecoins in hopes that it will follow similar rise as bitcoins and you can make some quick cash.Bitecoin Company does some advertising and floods the market with these bitecoins, keeping a major share with themselves of course.With people demanding to pay in bitecoins, merchants start accepting bitecoins, leading to rise in the value of bitecoin and quite naturally a fall in bitcoin value.

But wait, Hitcoin company just released its latest hit, “the Hitcoin”, for $2.Rit, Git and Fit coins are all for $1.And this doesn’t stop till the last holy f****** shit coin hits the market.This would cause chaotic instability and loss of faith in cryptocurrency which would ultimately lead to a demand for a regulatory institution for cryptocurrency, and thus destroying the very idea of an open source currency.Everything you want to know about the meme-based cryptocurrency, Dogecoin is a new type of crypto currency introduced on December 8th, 2013.As of February 2014, more than 40 billion dogecoins have been mined.With the approximate value of $0.00031 each, the current market cap of dogecoins is roughly over $10 million whereas that of bitcoin is well over $10 billion with only 12.25 million bitcoins in circulation.So it would seem dogecoins is not really a threat with no actual uses, at least not imminent.In fact, according to Spelunk.in’s Pinguino, “dogecoins is very, very silly, and very fun.