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04 Sep 2012
Bitcoin is still the Net's favorite virtual currency, particularly for people who believe that the gold standard was a good idea. I see that Bitcoin has recently achieved sufficient critical mass to support a classic Ponzi scheme, a guy who promised absurd rates of interest, 7% per week to his "investors", then disappeared with 500,000 of other people's Bitcoins. At the current price of about $10/bitcoin, that's nominally $5 million, but Bitcoin markets are so thin that in practice it's worth a lot less unless he trickles them out over many months.
Given the general level of financial sophistication of Bitcoin users, the real question is why it hasn't happened sooner.
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