Saturday, 4 October 2014

Review: BitCon: The Naked Truth About Bitcoin by Jeffrey Robinson

Since I read so much, I thought that maybe I can start posting reviews. I have already been asked by publishers to review other peoples' writings about Bitcoin, and I think I'm getting the hang of it. I take it seriously and I fully read everything that I review, and make highlights and comments. So let's start. Today I'll review BitCon: The Naked Truth About Bitcoin by Jeffrey Robinson.

Introduction

While the author obviously did a lot of research, my main problem with this books is the author’s bias. The proponents of Bitcoin are, with a handful of exceptions, presented as anonymous, hysterical and associated with ad-hominems, for example: “pretend-currency” or “the Faithful”. Their arguments are ridiculed and derided, for example “I’d been hearing this made-up baloney for months, over and over again, thrown out like absolute fact with nothing to back it up”. The sources of proponents he uses are mainly comments and forum posts. Personally, what I found most outrageous was that instead of calling Jon Matonis (Executive Director of the Bitcoin Foundation, who has been researching money for 30 years and held senior positions in banks and at Visa) by his name, he refers to him as “the Bitcoin Foundation Fountain type” [fixed] and “the same chap”.
The opponents, on the other hand are presented as rational, calm, they are named including their credentials and positions, for example “Yermack's explanation is a reasoned and rational one”. Their arguments are taken as unquestionable truth. He sources them from, among other things, personal interviews and blog posts.

Bias continues

The bias is all over the place. On one hand, he argues that “... all suspects are innocent until proven guilty …”, yet that does not prevent him from claiming that Ross Ulbricht is, as alleged by the US prosecutors, indeed Dread Pirate Roberts, prior to his sentencing. When addressing Bitcoin from the perspective of Austrian school of economics, he quotes three negative opinions, and ignores many others who are either neutral or positive about it, and instead of referencing research publications, he references blog posts.
When describing the position of the Federal Election Commission towards using Bitcoin in political donations, he writes that their decisions “... speak volumes about the confidence the FEC lacks in bitcoin”. I listened to recordings of both of the FEC meetings which resulted in this decision. The debate was mainly regarding applications of internal regulations and how to technically implement them and had nothing to do with confidence.
He says that he is “... skeptical of explanations where money is involved that are too complicated for an 8-year old to understand.”, yet I doubt anyone of that age can understand how the current financial system works. It probably takes at least a 12-year old, like Victoria Grant. Many if not most adults don’t understand it either.
The economic analysis is a mixed bag. On one hand, he describes the omnipresent hype, fraud, bubbles, pump and dump schemes, and so on, and how they are present a problem. I have no issue here and even agree to a large extent, just in one occasion, he describes a pump and dump scheme and incorrectly labels it as a ponzi scheme. Another thing that I agree with him is that Bitcoin is not suitable for money laundering (for similar reasons as he presents).
On the other hand, he lacks understanding of largely uncontroversial concepts like the liquidity premium and transaction costs. Mainly he ignores the hidden costs of a trusted third party and the property rights enforcement of media of exchange. An example would be the costs associated with identity theft, which he does not mention at all. Without these, a lot of economic phenomena cannot be understood, not merely Bitcoin.
He lacks a theory of evolution of media of exchange, and appears to think that one day he wakes up and something that didn’t exist before is now a “currency”. Again, without such a theory, a lot of economic phenomena cannot be understood.
He complains in multiple places that merchants tend to use bitcoin only as a payment mechanism rather than a currency, and does not understand the relevance of this (he writes for buyers, “There is no monetary benefit … [n]or is there any benefit of convenience”). He misses that, among other things, merchant acceptance increases liquidity. When in Can Bitcoin Become a Major Currency? Lawrence White and William Luther explained the economic relevance of the usage as a payment mechanism, I thought they were joking for writing something this obvious, but apparently it’s not as obvious as I thought.
Jeffrey Robinson portrays, M-Pesa or Amazon Payments as potential competitors to Bitcoin, but misses, among other things, that they do not work internationally. Amazon Payments only works in the US, the Kenyan M-Pesa only works in Kenya. International trade is a non-negligible proportion of global trade.
The more controversial economic topics, such as deflation, velocity, intrinsic value are portrayed in a one-sided way and again the statements of the sources are taken as undeniable.
I would also complain about Jeffrey’s statist bias, but I think it probably would be unfair, because this is widely present everywhere and I don’t want to single him out.

Conclusion

In summary, don’t buy this book. There are better explanations of Bitcoin, and better critiques of it as well (indeed, it’s probably better if you read the original critiques he references). If you want to read more about bubbles, I recommend Boombustology, and if you want to read more about taxation and Bitcoin, read Jason Tyra’s blog.

If you like this review, send me some Bitcoins: 1MKkciz5zT4Vg8pxkd3VtAwMMcxyWPiQtQ.

82 comments:

  1. You are right in your analysis. I might have given his advice more merit had he not come across as confrontational. It was as if someone one was personally attacking him. If that helps him sell his books, more power to him.

    ReplyDelete
    Replies
    1. I can’t believe this happened to me because i just decide to give it try, I was reading about cryptocurrency because i am really interested in investing in cryptocurrency because from the books i’ve read…The digital currency is the future, I saw the bitcoins price and it is way too steep for me financially so i had to read some books about trading because that’s the only way to acquire bitcoins since it’s high. I tried to trade on my own but didn’t go through then i began to look for a trader online. I got to a forum on youtube and i get to see everyone giving testimonies of how the Mr William lee helped them trade bitcoins in less than 3 days. I read some reviews on youtube and i decided to continue doing my research, I got to a forum on disqus and other websites as well and i couldn’t get enough of the Mr William testimonies. I am just seeing his emails everywhere and how he help families and more. I decided to give it a try and had to go for his lowest package at first because i am nervous. Then Mr William lee help me trade 1.3223 btc in less than 4 days and i am ready to invest the whole 1.3223 btc with him again so i can get 6 BTC. I just have to drop this here because i saw his info online and i am on my way to be financially free for the rest of my life. I don’t want to be selfish…. You all should contact Mr William below via email leewilliam664@gmail.com and he will get back to you in no time. You will thank me later for this great info whatsapp +14086012169

      Delete
  2. This comment has been removed by the author.

    ReplyDelete
  3. I went to learn about how bitcon works pls and how to use it?

    ReplyDelete
  4. http://www.classicsalive.org/
    http://www.clickbook.net/forum/blog.nsf/dx/10012014011418PMMDEGBS.htm?opendocument&comments
    http://www.schemehostport.com/2011/10/x-script-origin-we-hardly-knew-ye.html
    http://www.delightdulce.com/2014/05/tart-au-chocolat-with-crunchy-crust.html
    http://www.flaquarium.org/Explore-the-Aquarium/Aquarium-Blog/April-2016/Wedding-Tails-Hilary-and-Josh-s-Wedding-at-The-Fl.aspx?saved=1
    http://www.copyrighted.com/copyrights/view/iapi-hcbg-7tvr-kg5w
    http://www.bridgeywidgey.com/2011/10/oreo-pops.html
    http://www.economicsofbitcoin.com/2014/10/review-bitcon-naked-truth-about-bitcoin.html
    http://www.roadsafetyfoundation.org/news/2014/10/20/telematics-motor-insurance-for-young-drivers.aspx
    http://www.bic.org.uk/blog/view/38
    http://www.blogcentral.rmit.edu.au/2014/09/family-and-sexual-violence-is-biggest.html
    http://www.trashisfortossers.com/2013/06/live-laugh-loaf.html
    https://es.steinberg.net/forums/memberlist.php?first_char=n&start=2000
    http://www.bizcommunity.com/Profile/AlexAiono/c-670
    http://footballrefereeing.blogspot.com/2016/07/euro-2016-refereeing-review-team-no-25.html
    http://sofie.org/portal/project-harvest-i-and-ii/more-candids-project-harvest-ii
    http://www.classicsalive.org/
    http://www.clickbook.net/forum/blog.nsf/dx/10012014011418PMMDEGBS.htm?opendocument&comments
    http://www.schemehostport.com/2011/10/x-script-origin-we-hardly-knew-ye.html
    http://www.delightdulce.com/2014/05/tart-au-chocolat-with-crunchy-crust.html
    http://www.flaquarium.org/Explore-the-Aquarium/Aquarium-Blog/April-2016/Wedding-Tails-Hilary-and-Josh-s-Wedding-at-The-Fl.aspx?saved=2
    http://www.copyrighted.com/copyrights/view/iapi-hcbg-7tvr-kg5w
    http://www.bridgeywidgey.com/2011/10/oreo-pops.html
    http://www.economicsofbitcoin.com/2014/10/review-bitcon-naked-truth-about-bitcoin.html
    http://www.roadsafetyfoundation.org/news/2014/10/20/telematics-motor-insurance-for-young-drivers.aspx
    http://www.bic.org.uk/blog/view/39
    http://www.blogcentral.rmit.edu.au/2014/09/family-and-sexual-violence-is-biggest.html
    http://www.trashisfortossers.com/2013/06/live-laugh-loaf.html
    https://es.steinberg.net/forums/memberlist.php?first_char=n&start=2001
    http://www.bizcommunity.com/Profile/AlexAiono/c-671
    http://footballrefereeing.blogspot.com/2016/07/euro-2016-refereeing-review-team-no-25.html
    http://sofie.org/portal/project-harvest-i-and-ii/more-candids-project-harvest-ii
    http://www.classicsalive.org/
    http://www.clickbook.net/forum/blog.nsf/dx/10012014011418PMMDEGBS.htm?opendocument&comments

    ReplyDelete
  5. Did you consider choosing the best Bitcoin exchange service - YoBit.

    ReplyDelete
  6. Reasons Ecoin is the money of the future
    bitcoin price ecn
    Crypto currencies were something entirely new not that long ago, though today a lot of individuals use them while buying or selling things

    ReplyDelete
  7. Exkash.org offers automatic and honest Bitcoin Exchange services worldwide. Exkash.org is one of the best bitcoin exchanges in USA that is mostly suggested and recommended by all bitcoin users. Sell more detail Bitcoin America

    ReplyDelete
  8. Each word composed has charmed its group of onlookers in the most one of a kind way.
    Changelly reviews

    ReplyDelete
  9. The blog is composed in basic English with no yearning towards writing.
    Ricona ICO

    ReplyDelete
  10. The Drug Enforcement Agency as of late directed its first-since forever Bitcoin seizure, after allegedly tying an exchange on the unknown Bitcoin-just commercial center Silk Road to the offer of solution and illicit medications. crypto crowdfunding

    ReplyDelete
  11. Thanks a lot mate for sharing the economics about the bitcoins at bestcryptocurrencyexchange.io website as well. Indeed this bias keep continuing and never ends, appreciate this post here keep me posted.

    ReplyDelete
  12. It stores records of all transactions that occur within it and is run by a peer-to-peer network.Btc doubler

    ReplyDelete
  13. Wipes out misrepresentation hazard - Only the Bitcoin proprietor can send installment to the planned beneficiary, who is the special case who can get it. The system knows the exchange has happened and exchanges are approved; they can't be tested or reclaimed. bitcoin tumbler

    ReplyDelete
  14. Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. crypto gaming

    ReplyDelete
  15. Thanks a lot you have given this stuff to me you can’t even imagine that how important it is for me.
    start here

    ReplyDelete
  16. I really appreciate the kind of topics you post here. Thanks for sharing us a great information that is actually helpful. Good day! To know more about bitcoin visit discover this info here

    ReplyDelete
  17. The signs ought to likewise be sent in expeditiously so they coordinate with genuine market exercises. binance exchange website

    ReplyDelete
  18. cash is a steady store of significant worth; the most fundamental trait, as without dependability of significant worth the capacity of numeraire, or unit of measure of significant worth, comes up short. ICO Marketing

    ReplyDelete
  19. If you desire to be aware of just how much bitcoin is worth, run a simple net search. If you want to essentially convert bitcoin to dollars, transfer them in an internet market and sell them to an interested consumer. crypto press release

    ReplyDelete
  20. Cool you write, the information is very good and interesting, I'll give you a link to my site.
    ビットコインニュース

    ReplyDelete
  21. Bitcoins are exchanged anonymously https://www.jetwin.com/en-us/bitcoin-casino on the Internet without the participation of established financial institutions.

    ReplyDelete
  22. Just like many other things, the value of 'Bitcoin' also depends upon the rules of demand and supply. If the demand for 'Bitcoin' increases, then the price will also increase. bitcoinvest.cc

    ReplyDelete
  23. Though there are dozens of Bitcoin news portals around there, all claiming they are providing you with the latest Bitcoin news, only NewsBTC can be trusted for its research and record. The portal is as old as is the history of Bitcoin. Cryptocoin

    ReplyDelete
  24. . This implies a full 'duplicate' of all exchanges are put away locally and used to confirm, between members, new movement, along these lines keeping any one individual from distorting, including or making counterfeit exchanges inside the square chain.https://www.jetwin.com/en-us/bitcoin-casino

    ReplyDelete
  25. We're a cryptocurrency alerting website that offers price alerts, percent price alerts, wallet alerts and other alerts for bitcoin and other cryptocurrencies with many notification options (email, sms, slack, telegram, etc). cryptocurrency

    ReplyDelete
  26. This comment has been removed by the author.

    ReplyDelete
  27. At long last, benefit relies upon components that no organization can foresee or control: simply recall the high instability of Bitcoin over the most recent three years. iqmining

    ReplyDelete
  28. I am jovial you take pride in what you write. It makes you stand way out from many other writers that can not push high-quality content like you. THS it's the only best and profitable Bitcoin Miner

    ReplyDelete
  29. Bitcoin is made through a procedure called mining. Much the same as paper cash is made through printing, and gold is mined starting from the earliest stage, is made by 'mining'. https://cryptalker.com/bitcoin-forums/

    ReplyDelete
  30. Reliable Exchange Bitcoin To Bank Account instantly, Wire transfer bitcoin to checking account US bank of america chase wells fargo, PNC TD HSBC Indian Bank

    ReplyDelete
  31. Double alternatives dealers are getting acquainted with fame of these Bitcoins, and its consistent fluctuating qualities. bitcoin

    ReplyDelete
  32. Then again being excessively cautious with your influence can obstruct execution considering premium exchanges may not perform to full abilities true to form.Best Bitcoin Trading online

    ReplyDelete
  33. In the manuals of the political economy we meet with the following definitions of finances: Business loans

    ReplyDelete
  34. These countries have economies that are more beholden to national interests. The most extreme state run economy on this list is Cuba, which has a Communist regime that has made slight concessions to economic liberalization. accept bitcoin

    ReplyDelete
  35. Others would really like to buy Bitcoin with debit card. Coinbase also affords this provider and has clean step by step commands on the way to continue with either your debit or credit card.How to recover your stolen bitcoin

    ReplyDelete
  36. Superb way of explaining, and great blog to get wonderful information.
    bitcoin trader

    ReplyDelete
  37. I think this is an informative post and it is very beneficial and knowledgeable. Therefore, I would like to thank you for the endeavors that you have made in writing this article. All the content is absolutely well-researched. Thanks... Best bitcoin 401k investment plan

    ReplyDelete
  38. The blog is unique that’s providing the nice material. Please post more interesting articles here.
    bitcoin trading app

    ReplyDelete
  39. These support transactions help in giving enhanced security to network clients, and guarantees honesty, which is relied upon to be the noticeable factor affecting development of the global cryptocurrency mining market. crypto bulletin

    ReplyDelete
  40. Hello everyone, Are you looking for a professional crypto trader, forex and binary manager who will help you trade and manager your account with good and massive amount of profit in return. you can contact TD Ameritrade for your investment plan, for he helped me earned 8,500usd with little investment funds. TD Ameritrade you're the best trader I can recommend for anyone who wants to invest and trade with a genuine trader, he also helps in recovery of loss funds..you can contact him on his Email: tdameritrade077@gmail.com
    Via whatsapp: (+12166263236)
    I advice you shouldn't hesitate. He's great.

    ReplyDelete
  41. So, creating a cryptocurrency exchange platform while targeting these countries can prove to be the best idea. https://binorcoin.com/

    ReplyDelete
  42. toptan iç giyim tercih etmenizin sebebi kaliteyi ucuza satın alabilmektir. Ürünler yine orjinaldir ve size sorun yaşatmaz. Yine de bilinen tekstil markalarını tercih etmelisiniz.

    Digitürk başvuru güncel adresine hoşgeldiniz. Hemen başvuru yaparsanız anında kurulum yapmaktayız.

    tutku iç giyim Türkiye'nin önde gelen iç giyim markalarından birisi olmasının yanı sıra en çok satan markalardan birisidir. Ürünleri hem çok kalitelidir hem de pamuk kullanımı daha fazladır.

    nbb sütyen hem kaliteli hem de uygun fiyatlı sütyenler üretmektedir. Sütyene ek olarak sütyen takımı ve jartiyer gibi ürünleri de mevcuttur. Özellikle Avrupa ve Orta Doğu'da çokça tercih edilmektedir.

    yeni inci sütyen kaliteyi ucuz olarak sizlere ulaştırmaktadır. Çok çeşitli sütyen varyantları mevcuttur. iç giyime damga vuran markalardan biridir ve genellikle Avrupa'da ismi sıklıkla duyulur.

    iç giyim ürünlerine her zaman dikkat etmemiz gerekmektedir. Üretimde kullanılan malzemelerin kullanım oranları, kumaşın esnekliği, çekmezlik testi gibi birçok unsuru aynı anda değerlendirerek seçim yapmalıyız.

    iç giyim bayanların erkeklere göre daha dikkatli oldukları bir alandır. Erkeklere göre daha özenli ve daha seçici davranırlar. Biliyorlar ki iç giyimde kullandıkları şeyler kafalarındaki ve ruhlarındaki özellikleri dışa vururlar.

    ReplyDelete
  43. Fantastic goods article.I understood your stuff before and you are great..Turkey travel visa and visa required for Turkey, you need to fill visa application form Turkey online through Turkey e visa.

    ReplyDelete
  44. Nice information, I am heartily very thankful to you for providing this kind of special knowledge. This information will always help everyone for gaining knowledge. Always keep sharing.
    Thanks

    ReplyDelete
  45. What a great explanation in yours posts.. International travelers who wish to travel to Azerbaijan for tourism and business purpose need to apply for Azerbaijan electronic visa through e visa application.

    ReplyDelete
  46. I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well.. Dark0de Market URL

    ReplyDelete
  47. Thank you for this. The international tourist who wish to travel to Kenya should apply for Kenya visa application online. Applying online saves time and provide you the best services where you can check the kenya visa requirements for us citizens and other information very easily.

    ReplyDelete
  48. Howdy superb website! Does running a blog similar to this require a great deal of work? I’ve absolutely no understanding of coding however I had been hoping to start my own blog soon.

    야설

    ReplyDelete
  49. Anyways, should you have any recommendations or tips for new blog owners please share. I understand this is off subject however I just had to ask. Cheers!

    대딸방

    ReplyDelete
  50. I was pretty pleased to uncover this site. I need to to thank you for your time for this particularly wonderful read!! I definitely appreciated every part of it and I have you saved to fav to see new information in your web site.
    횟수 무제한 출장

    ReplyDelete
  51. You really make it seem so easy with your presentation but I find this topic to be actually something that I think I would never understand. It seems too complicated and very broad for me. I am looking forward for your next post, I will try to get the hang of it!

    타이마사지

    ReplyDelete
  52. I love the words you express in this page . It is informative content. I admire your work . In this pandemic a lot of people want to extend their visa. The online visa extension India is quite simple by online process and the services FRRO provides is available for all foreigners.

    ReplyDelete
  53. It's really a great and useful piece of info. I'm satisfied that you just shared this useful information with us. Please keep us informed like this. Thank you for sharing. 야한동영상

    Click this link
    야설

    ReplyDelete
  54. Thank you for your kindness by providing valuable information to us. It really helped me to enhance my knowledge and skills 일본야동

    Click this link
    한국야동

    ReplyDelete
  55. Such an amazing and helpful post. I really really love it.
    스포츠토토

    ReplyDelete
  56. Hi there, I enjoy reading all of your article. 토토

    ReplyDelete
  57. Amazing! Its really amazing article, I have got much clear idea regarding from this post. 경마사이트

    ReplyDelete
  58. whoah this blog is wonderful i love reading your posts. Keep up the great work! You know, many people are searching around for this information, you can aid them greatly. 슬롯머신

    ReplyDelete
  59. Thanks for sharing a nice article really such a wonderful site you have done a great job once more thanks a lot 토토사이트

    ReplyDelete
  60. Nice info.. Thank you.... How to Apply Pakistan Visa Online? You can see here How to apply Pakistan visa online, Pakistan Visa Website You can see here all the information and read all the Visa Guidelines.

    ReplyDelete
  61. The material in your post is helpful since it provides some of the most up-to-date information accessible. Thank you for sharing about Buy bitcoin Canada. Keep up the excellent job.

    ReplyDelete
  62. Thank you.. I am enjoying every bit of it. It is a good site, as well as the stock is well-chosen. type of Indian visas, e-Tourist Visa, e-Business Visa, e-Conference Visa, e-Medical Visa, e-Medical Attendant Visa, e-Emergency X-Misc Visa etc. All info related to Indian visa you can read online via Indian evisa portal.

    ReplyDelete
  63. Incredible post I should state and much obliged for the data. Instruction is unquestionably a sticky subject. Be that as it may, is still among the main themes of our opportunity. I value your post and anticipate more. 메이저저사이트

    ReplyDelete
  64. Hi guys, thanks for your blog. If you are willing to travel in India, now that India is open for tourism, you can travel in India. But without a visa you can never enter India. Firstly You can apply for an Indian visa & you can fill yourself online Indian visa application form within 5 to 10 minutes.

    ReplyDelete
  65. This blog is great for me. I will keep coming here again and again., If you are willing to travel to Pakistan, everything is online nowadays. First of all check that you are a citizen of the eligible country and then apply for a Pakistan visa application. You can on our Pakistan visa online website & read here all info.

    ReplyDelete
  66. Thanks for sharing the best information and suggestions, it is very nice and very useful to us. I appreciate the work that you have shared in this post. Keep sharing these types of articles here. windshield repair virginia beach

    ReplyDelete
  67. Muchas gracias por esta serie de consejos de Inversión. Quisiera saber que opinas respecto a la Inversión en Bitcoin hoy ? .

    ReplyDelete