Bitcoin
The phenomena known as Bitcoin is nothing more than maths for finance. Since we live in a world in which casino banking is acceptable, it makes sense to have a currency that is based on computer calculations and computer consumption.
In the real world of financial exchange gold, conch shells, silver etc have all been used for unit of financial exchange and since the internet has given us virtual worlds and social networking why not have virtual currency.
Tomorrow. some clever dick will come up with a rival new currency and it could be based on tulip bulbs, for example. With tulip bulbs you will be able to buy drugs, porn, guns and all sorts of things which you want to have, but, you do not want to leave a trail. If you grow them then you can put it into a tulip bulb exchange and receive cash from around the world by investors, speculators and chancers.
Tulips come in various design and colours which will not increase the value of that tulip bulb, but, it will give you hours of pleasure to look at if the blossom and bloom. The only problem with tulips is that they do die so you will have to keep on planting and growing tulip bulbs to keep your worth going.
Bitcoins are like tulip bulbs. They satisfy the need to have a way of electronically dealing in a virtual world. However when they bool or become a physical entity in the form of goods or services. then they will need to be replaced. At least that is what I think….I could be wrong!
Bitcoin has been described as a ponzi scheme, a classic bubble which will blow up in the face of participants, a modern day pyramid selling scheme. Most of this can be true and it seems the authorities are looking into Bitcoins. As you may have understood by drawing an analogy with tulips I am bringing forward the spectre of the Tulip Bubble meltdown which saw bulbs of tulip going for astronomical sums until people woke up and realised that they were only flowers and not something to make huge bets on.