Doomsdayers and Naysayers Battle It Out Over Bitcoin

Two distinct schools of thought have emerged about Bitcoin: It is a stable and decentralized currency or it’s a junk fiat currency.


Since its creation in 2007, Bitcoin has been in a constant state of turmoil. And during all that turmoil, two distinct schools of thought emerged: Bitcoin is a stable, decentralized currency that will save us all, or it’s a junk fiat currency that’s been “over” since it started.

New York contributor Kevin Roose compares Bitcoin champions to a doomsday cult from the 1950’s. Just as doomsday cults often stick to their message long after the world fails to end, Roose thinks Bitcoin has generated the same kind of fervent atmosphere.

“It has never been enough for this group to have supported the rise of a nifty new experimental currency — what they want, and what they believe is coming, is the dawn of an entirely new age,” Roose writes. But as with many other writers, Roose has his own apocalyptic predictions to make: “The Bitcoin dream is all but dead. Now the true believers are trying to cope with their setbacks by increasing their numbers.”

The setbacks for Bitcoin have been many, from MtGox’s bankruptcy to Flexcoin’s shutdown, and the champions hold fast to their belief, even as Roose and others strongly speak against it. Bobby Lee, CEO of BTC China, believes that Bitcoin will become popular in the same way the Internet has — initial bumps will smooth out given time.

“That’s what’s amazing about Bitcoin, it’s truly a global phenomenon, very resilient and the reason it’s resilient is because many people want to buy into it,” Lee told The collapse of MtGox may even be a good thing, according to some Bitcoin advocates. “Now there will be an opportunity for a U.S.-based regulatory compliant exchange to build meaningful liquidity” Jeremy Liew of Lightspeed Venture Partners told the Los Angeles Times.

The housing crash of 2008 didn’t destroy the banking industry beyond repair. The stock market crashes all the time, but companies still file IPOs. So maybe Bitcoin won’t die. Maybe teens aren’t leaving Facebook. G+ isn’t a ghost town. Sky isn’t falling. Though it’s not exactly raining Bitcoin either.

Image credit: btckeychain