Bitcoin skepticism

This is Joseph

This is a very good critique of bitcoin and blockchain approaches in general.  It pairs with some recent work by Megan McArdle, who is also skeptical.  It's got to be a great solution for something if this part is even close to correct:

Plus, it’s not actually that good a payment system — Visa can handle sixty thousand transactions per second, while Bitcoin historically taps out at seven. There are technical modifications going on to improve Bitcoin’s efficiency, but as a starting point, you have something that’s about 0.01% as good at clearing transactions. (And, worth noting, for those seven transactions a second Bitcoin is already estimated to use 35 times as much energy as Visa. If you brought Bitcoin’s transaction volume up to Visa’s it would be using as much electricity as the rest of the world put together.)

I value privacy in my transactions but I also value fast and cheap, as well.  I am not sure what problem this solves that cash or gold can't solve, given that they also have the slow transaction problem.  Cash has the added advantage that things are priced in it, making it a bit easier to come to agreements about the cost of things (a volatile currency is a bad store of value).

So I suspect that this is one more case of a market showing irrational exuberance.  Which should get us to wonder about what other price discovery mistakes could be embedded in markets, and why it is key to think about how and why a market can fail.  Bitcoin is a small issue, but health care is a much bigger one and it is quite possible that we have similar issues of market failure there as well.  

So food for thought.