Fields: Bitcoins Are For Fools


sam fields

There are a number of books out there that offer a history of speculation. They all conclude that some things never change.

Whether it’s tulip bulbs in the 1630’s , Dotcom stocks in the 1990’s or real estate in 2005, it’s all the same.  It’s the psychology that says:  “I gotta get in on this before it is too late.”  And it always ends the same. A few folks bail when they figure out that “the Emperor is buck nekkid” and all disappears in the wink of an eye.

Bitcoins, some incomprehensible computer money system, has taken it to a new level. Whereas there actually were tulip bulbs, internet stocks and homes, Bitcoins are a completely ethereal currency/commodity and exist only in some unknown person’s software.

Nevertheless, people are trading them and a few companies are accepting them as currency for legitimate and not so legitimate purchases.

It’s a private currency. This is a libertarian wetdream.  And we all know how wetdreams end – you wake up to reality.

It never works.  In the 1830’s, populist President Andrew Jackson destroyed The Second National Bank which was the only institution allowed to print money. Without the national bank, all across the country, local banks issued over 10,000 brands of paper money.  It destabilized the economy into a boom and bust cycle. None lasted and neither will Bitcoins.

The reality is that Bitcoins value fluctuates wildly.  Last week,  a Bitcoin was worth up to $1240 before they fell back to below $900.

Bitcoins are not secure.  Not only can they fall victim to malware and viruses, but any transaction using them are irreversible.  If a buyer pays in Bitcoins and the transaction turns out to be a scam, there is little recourse.

Currency is based on a country’s economy.  When the economy goes south, and the government can’t pay its bills with taxes, it may resort to the printing press.  That causes inflation driving down the price of the money. Think Gresham’s Law about cheap money driving good money out of circulation.  Think Argentina, Belarus and Venezuela where 20%+ inflation is now the norm.

Unlike Bitcoins, at least they have an economy.  What does Bitcoins have?  A secret algorithm that keeps those in charge from creating gobs of Bitcoins to line their own pockets?  What a joke.

In this case, the joke will be on the last schmucks holding Bitcoins.

Let’s hope that the inevitable collapse of Bitcoins does not infect the rest of the economy.

12 Responses to “Fields: Bitcoins Are For Fools”

  1. Sam The Sham says:

    Bitcoins may or may not be a legitimate currency, but then you could say the same for the US Dollar. It is a fiat currency, supported by nothing more than faith and credit. The US printing presses, both real and electronic, are busily printing more funny money each day. Don’t forget that $85 Billion the Fed is creating out of thin air each and every month. At some point the party will end.

  2. Gold says:

    Fields states the obvious. What he doesn’t say is that someday there will be electronic money. We just aren’t there yet.

  3. Christine says:

    The next time I need a middle school understanding of economics, I will be sure to read you again, Sam.

  4. Kevin says:

    A currency, whether paper or metal, real or ethereal, is only as “real” as peoples’ sustained willingness to take it in trade for a good or service.

    Heck, even “hard” currency like silver dollars is only worth something because people are willing to take the silver content (and silver is not nearly the rarest metal out there).

  5. Sam The Sham says:

    Here is something to think about:

    and this:

    A wave of the future?

  6. SAM FIELDS says:

    Dear Christine,
    Sorry it was over your head.

  7. Wake Up Broward says:

    Dear sam,
    Don’t be a putz.

  8. Christine says:


    You wish.

  9. Ed Foley says:

    It was bound to happen. Sam is officially a Luddite conservative. Once again proof that time ossifies the mind and restricts free thought!

  10. susys says:


    “Silicon Valley is ramping up its real money bets on the virtual money Bitcoin.

    Andreessen Horowitz, a leading venture capital firm, announced on Thursday that it had led a $25 million fund-raising round for Coinbase, a Bitcoin start-up in San Francisco that aims to help virtual currencies gain mainstream acceptance.

    Chris Dixon, a partner at Andreessen Horowitz who will join Coinbase’s board, said on Thursday that “it’s hard to overstate the excitement of a certain segment of the technology community.”

  11. Missy says:


    Christine’s an expert at finance — all learned from her years of being a secretary at a local church.

    You know how mad financing is an integral part of that job.

    Oh, and she once told the world she was a MD trained head shrinker.

    This one is whacky. Like Fatal Attraction, run the other way as fast as possible whacky.

  12. Christine says:


    Missy aka Chaz

    What an honor it is for you to cyber stalk me in the midst of your media blitz! Don’t tell me your 3 minutes of fame are up!!!!

    And calling yourself “Missy”? Are you now into cross dressing and the whole transgender thing? Who knew! How kinky of you!


    Actually I am a pastoral theologian, and work as a Director of Faith Formation See, you don’t know that, because in your half fast investigation of me, you didn’t have the correct spelling of my last name. I have a BA and MA. Sat next to Neil Cavuto at my undergraduate graduation. I shorened my last name from it’s ridiculously long ethnic spellling a few years later.

    But enough about me.

    It really should be all about you.

    I saw the media coverage.

    You look terrible.

    I barely recognized you.

    What happened?

    Pudgy, pasty and dare I say, gray. ( well what little hair you have left).

    Please take better care of yourself.

    I say this sincerely. I know what joy you get out of cyberstalking me. You don’t want to cut that short, do you?

    PS. If you have time, please don’t forget to renew my name and domain. How smart of you to do that! You grabbed my name and bought the doman, a mere 5 years after I had last seen you. Kudos to you! When you obsess, you obsess!