The article is not written by an Austrian. But he points out a few important facts that prove bitcoin is not now, and never will be, a medium of exchange.
1. Nobody is actually buying anything with bitcoins. We are talking about hoarders almost exclusively [99%].
The bitcoin crowd will have you believe that you could open a giant mall with all the constant buying and selling going on with bitcoins. They publish catalogues, they list lists, they say bitcoin is already thriving as a currency.
But the facts are exactly the opposite. 99% of the bitcoins in the world were mined, and then held onto tightly, like Smaug the Dragon sitting on his gold.
Sorry guys, that is not a medium of exchange. At all. A medium of exchange is something you use to buy stuff, not something to sleep on.
2. Bitcoin all in all is a tiny tiny market.
A medium of exchange has to be in very wide usage. But only a small number of people have anything to do with it. Add that to the fact that 99% of those who have touched it are hoarding it, and we see that bitcoin is not a medium of exchange at all.
3. The price of a Bitcoin is directly related to the publicity given to Bitcoin.
I love these two charts:
What do you call a thing that goes up and down in prices depending on publicity? A fad, that’s what. Bitcoin is a fad, and like all fads, will go out of fashion some day.
4. The moment someone actually tries to release a significant amount bitcoins on the market [for example, actually use them as money], bitcoin prices will drop like a stone.
Which is exactly what a money isn’t. Imagine if the moment you went to the store with your dollars, their value melted away? Would you accept payment in dollars, or try and find something better?
For more about bitcoin, see here: https://smilingdavesblog.wordpress.com/2012/08/03/bitcoin-all-in-one-place/