The Bitcoin Conundrum

Longtime readers will know I’m no fan of Bitcoin. To me, the whole concept is an overcomplicated solution to an already complicated system. Bitcoin enthusiasts argue that they need a currency easier to manage than the U.S. dollar, but the dollar—and the centralized ledgers that support it—exist for a reason. Tossing them aside ignores the very problems they were created to solve. It’s like introducing cats to get rid of mice, then dogs to chase the cats, then elephants to deal with the mountain lions. Before long, you’re nostalgic for the days when you only had a couple of mice.

Now, the latest Bitcoin buzz centers on the potential approval of a Bitcoin ETF Don Wilson of DRW Holdings claims, “Once a derivative is launched, a Bitcoin ETF will follow… that’s the common wisdom.” Maybe. It’s definitely a common thought, but I’m not sure I’d call it wisdom.

The Rise of Personal Currencies: Evancoins

If Bitcoin seems questionable, let’s talk about Evancoins—the personal currency of Evan Prodromou.

Each Evancoin can be exchanged for one hour of his time. If your first reaction is, “Why would anyone want an hour of Evan’s time?”—you’re missing the point. The point is, Evan gets to write things like this:

“As of this writing, each Evancoin, representing an hour of Prodromou’s attention, is worth about $45 (That’s well below his usual consulting rate).”

No! Bad Evan! That’s not how value works. Either the Evancoin is worth $45, or Evan’s time isn’t worth more than $45—both can’t be true. Imagine this in another context:

“As of this writing, $45 will buy you one hour of Thad’s time. Thad’s hourly rate is well above $45.”

Nope. That math doesn’t check out.

Evan’s vision is for everyone to have their own personal currency. In theory, you could bank Evancoins for the future as they appreciate (or depreciate) in value. But don’t try depositing them at an actual bank—you might get arrested.

The best part? He even admits that the inspiration came from a friend who casually suggested, “Everyone should have their own personal currency.” Naturally, Evan’s response was to register Evancoin.com immediately. If this trend catches on, it might actually be useful—if someone tries to pay me in Kevincoins, I’ll know not to meet with them in the first place. Time saved!

Elsewhere:

• GOP is divided
• HSBC trader phone calls
• Don’t invest with a psychopath
• Self-learning machine
• Can we have a better stock bubble?
• Robots want your job
• Board games inspired LinkedIn founder
• Risk Perception vs Risk Profile
• Blackrock is the Amazon of Investing

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