That's the most cogent write up on bitcoin that I've read - and I've read quite a bit. Doesn't explain the mania though. I think the technology is solid, or at least promising. But I don't think anyone who's bought bitcoin in the last year or so is betting on the technology or any possible end use of the technology. All they're betting on is the price. Investor A is betting that some Investor B is out there who will buy it for more than he paid for it. And Investor B is counting on an Investor C for the same reason, with no underlying change in value of the original asset. Bitcoin is, indeed, digital gold - at least as it's being traded now. And gold, long term, is not a particularly good investment. At least with physical gold, you might be able to convince yourself that you're hedging against some apocalyptic event. You don't get that with bitcoin. If everything comes crashing down, chances are, the blockchain network is coming down with it. In a Mad Max fantasy world, the gold hoarders will get the last laugh. And I'm not sure I'm buying your argument that we need a currency designed to let regular people hide assets from bad state actors. That could just as easily be flipped around so that bad people could hide assets from regular state actors. In fact, that second case is primarily how bitcoin is being used now. The tiny slice of the global economy doing bitcoin-based trade is dominated by Silk Road merchants and ransomware hackers. Not sure I want to throw my lot in with those guys. Anyway, great post. Thanks for taking the time to put that up.