Guess What Folks, David S. Evans Does Not Know His Ass from a Hole in the Ground (Patrick Byrne’s reply to David Evans’ Bitcoin hit-piece, “Guess What Folks, Does Not Take Bitcoin”)

    On May 23, 2014 (“what’s next in payments and commerce”) published a piece (“Guess What Folks, Does Not Take Bitcoin”) by David S. Evans that is as remarkably poor an example of research and analysis as one is likely to see these days.

    • “Partick Bryne, Overstock’s CEO and ‘Bitcoin Messiah’, even gave the keynote at last week’s Bitcoin2014 conference in Amsterdam. If he’s not a believer, who is?” asks Mr. Evans in his opening paragraph (misspelling both my first name and last in a foreshadowing of the general shoddiness of his homework).
    • In the next paragraph Evans falsely asserts about Overstock’s acceptance of Bitcoin, “To pay with the Bitcoin button you need a Coinbase wallet.” In this he is simply wrong: Anyone with Bitcoin can pay with that button (I suspect that this mistake is another expression of Evans’ unfamiliarity with Bitcoin and inattention to detail).
    • Now jumping to the end (where Mr. Evans buries his lead), “In the end, in this bizarro world, even the Bitcoin Messiah wants greenbacks.” Actually, even the Bitcoin Messiah has to pay his suppliers, and since they want greenbacks, at some point the Bitcoins that customers spend at Overstock must be converted to greenbacks to pay for those goods and services. This basic truth has Mr. Evans so agitated that he sees the whole process as “smoke and mirrors.”
    • In developing the previous point, Evans falsely asserts, “ never takes possession of bitcoins or anything denominated in bitcoins.” This is also wrong: at checkout our customers’ Bitcoins are moved to our wallet, then Coinbase sells Bitcoins from that wallet back into the market in return for dollars on our behalf (however, we have stated publicly and accurately that we are accumulating Bitcoin reserves equal to 10% of all Bitcoin spent on our site).
    • Another paragraph, another blithering idiocy: “It gets weirder. How did you get bitcoins in your wallet in the first place? You were asked to link your bank account to Coinbase.” Actually, there are a plethora of ways one may acquire Bitcoin that have nothing to do with Coinbase, and all of the Bitcoin thus acquired works with Overstock.
    •  “Overstock could have a bitcoin account, and pay people and vendors in bitcoin, regardless of whether people want to buy stuff from Overstock using their bitcoins.” Except that nobody (e.g., the IRS) has worked out the tax issues related to paying employees in Bitcoin (though I have on several occasions said publicly that we wish to be at the forefront of paying Bitcoin to employees and vendors who will accept it, and have publicly invited firms that work in those areas to contact me).

    And so on and so forth.  Nearly every paragraph of David Evans’ initial piece, and even in his back-spinning “clarification,” has errors that would make a college sophomore blush. That is quite an accomplishment for a man who bills himself as “ranked among the top 3 percent of economists in the world” (with, as one comes to expect from Mr. Evans, no explanation or citation).

    This post was written by:

    - who has written 226 posts on Deep Capture.

    I am a concerned citizen who has been focused on systemic instability since 2004.

    Contact the author

    29 Responses to “Guess What Folks, David S. Evans Does Not Know His Ass from a Hole in the Ground (Patrick Byrne’s reply to David Evans’ Bitcoin hit-piece, “Guess What Folks, Does Not Take Bitcoin”)”

    1. Thanks for taking the time to respond to this bullshit piece from David Evans. I just gave a podcast interview on via his partner Karen Webster and was horrified to read this article on the same website. Well done!

    2. I got out says:

      Not shocking. Accuracy and human decency have never been strengths of

    3. RSS says:

      To paraphrase Shakespeare … Mr. Bryne “doth protest to much, methinks”

    4. iStandUp says:

      Gold and Silver Manipulation:

      Whether silver prices move high enough is a function of how aggressive the raptors are in liquidating their record net long position and how aggressive JPMorgan and the 7 other big shorts are in adding new short contracts.

      This is the key unknown. But what is clearly known is that the current concentrated short position of nearly 317 million oz is already so large that it proves the silver manipulation on its face.

      That the position has no hedging or economic legitimacy makes it outrageous to even contemplate that it may increase further.

      If there is one thing to focus on in silver, it is what happens to this criminal concentrated short position in COMEX silver.

      – Silver analyst Ted Butler: 24 May 2014

    5. si_ravenseye says:

      Way to go Mark Mitchell and Gary Aquirre!
      Journalist Sues SEC to Get Naked Short Selling Files
      Lawsuit Filed in Chicago Seeks to Tear Down SEC’s Veil of Secrecy
      CHICAGO, IL, May 29, 2014
      –SOURCE: Aguirre Law, APC

    6. James R. says:

      Bitcoin is for fools (fools gold, if you will). There’s not much difference between that and the “Tulip mania” craze, except at least tulips were real and not digits on a computer screen.

      History does repeat itself and the con-artists are always out there ready to reel in the unwary.

    7. KellyG says:

      Really? This guy can’t get any facts right! First spelling Patrick Byrne’s name incorrectly now calling the website Wow that’s pathetic!

    8. jual cd rpp says:

      My brother suggested I would possibly like this website. He was entirely right. This submit truly made my day. You cann’t believe simply how a lot time I had spent for this information! Thanks!

    9. I don’t even know the way I stopped up right here, but I thought this put up was good. I don’t recognise who you are but definitely you are going to a famous blogger for those who aren’t already. Cheers!|

    10. Quick shipping!!! Awesome seller!!! Great transaction! A+++++!

    11. air jordan says:

      Yeux s’allument soudain, où Bo se ‘vrrle rrtre soudainement apparu devant not bâtiment, puis regarder nufactured près, Ye Ye? Il n’est pas encore avant que l’armée Shou Fang Shimizu salle made a decision Même des endroits exposés fissures exactement de la même ah, comment cela va-t? A ce moment une voix soudain retenti à l’esprit: & quot; chanceux, Bonjour, Je suis the XX-01 système de html code vous êtes mon top utilisateur choisi,le systèm

    12. barbour says:

      Chapitre 35 fourmis, indigne nufactured regarder le ciel dans le monde Lever Lycée terrain nufactured basket intérieur & quot; Eh bien, maintenant la pratique indépendante. Dissous & quot!; Professeur d’éducation figure vient nufactured terminer, les élèves devront trouver united nations endroit gush s’asseoir.: Je me suis assis et Watanabe Mayu basket-dessous.; & quot; s’av’e rrtre enfin terminée. & Quot; & quot;. Ah & quot; & quot; Dans l’ensemble, la mé

      • Again struggled for a while, my brain is not getting out of first gear. But having read the wonderful messages left on this blog and BD’s hints have finished. Off to Oxford to celebrate three years with the missus. see you guys tuesday.

    13. air jordan says:

      Matin, baigné dans le soleil Zhao rêve south east leva lentement nufactured sa chaise,illinois n’a pas dormi nufactured la nuit! Mais gush lui, n’a promote simplement pas dormir toute la nuit pas grand-chose! hier soir qu’il allait considérer le ciel toutes les données nufactured jeu sont examinées,illinois a multi functional également été fasciné par l’annonce que les Nations Unies ont publié!! ! En ce qui concerne la quatrième annonce est

    14. air jordan says:

      Linshu Vous vous souciez groupe: 174 087 527 repas finis Mayaw tenant not bol devant une portée de soldats sont venus à les aimer et south east laissa tomber sur the sol regardent les soldats sont très surpris nufactured moi-même, Ma Yue rit: & quot; Ne me regardez pas comme ça, manger, vous ne sentirez pas que ma posture indécente manger !, ha ha ha ha nous sommes tous frères et vous pouvez le faire, je peux the faire, et vous vous ne me regardez pas indé

    15. & Quot; Comment s’engager, pourquoi ne peut toujours pas se sentir la barrière percée & quot. Chanson Kun dit très déprimé. Chanson Kun se ‘vrrle rrtre Song Song Zhendong Dizi patriarche. Song,us nufactured la ville nufactured Lingwu trois nufactured la famille, et deux autres famille Meng Wang et dépecer la ville nufactured Lingwu,make some comparable. Ville de Lingwu peut seulement dire que dans les jours nufactured region martiale se ‘vrrle rrtre une herself plac

    16. Le lendemain, Qiu Feng avait juste réveillé, toujours gush lui-même hier à tuer à lui seul the pirate nufactured maître coréen et d’excitation. Aujourd’hui se trouve être samedi, Qiu Feng arrive aussi de réaliser la promesse d’hier —- Noir Gaolibangzi site La mère nufactured Qiu Feng était allé au travail, parce cual la mère nufactured Qiu Feng,us seul jour nufactured vacances the dimanche,cuando bonne mère médecine d’a

    17. Fantastic web site. Plenty of useful information here.

      I am sending it to a few buddies ans also sharing in delicious.
      And naturally, thanks to your effort!

    18. personality says:

      whoah this weblog is magnificent i like reading your posts.
      Keep up the good work! You already know, lots of persons are looking round for this information, you could help them greatly.


    1. […] Patrick Byrne, Overstock’s CEO, seems to disagree with it (see his rather angry response here […]

    2. […] It looks like I poked the hornets’ nest and awakened the slumbering bear at the same time with my article last Friday about Overstock not really taking bitcoin. The hysterical reaction is puzzling since the point of my article is simple and no one, including Patrick Byrne, Overstock’s CEO, seems to disagree with it (see his rather angry response here) […]

    3. […] Market Platform Dynamics founder David Evans recently got into a spat with Overstock CEO Patrick Byrne when he wrote recently that the company doesn’t really accept bitcoins because it uses Coinbase instead to convert the bitcoin value into U.S. dollars. Byrne denied the claims in an angry rebuke. […]

    4. […] firestorm I would kick up.  Patrick Byrne, Overstock’s CEO, was not happy with me as evidence by his post  here on not to mention his tweet […]

    5. […] 8. “At best, David S. Evans has a keen grasp of the obvious. Except for those things about which he is wrong.” – Patrick Byrne, CEO Overstock […]

    Leave a Reply

    • Latest
    • Comments
    • Tags
    • Subscribe

    Related Sites

    Message from

    At the time much of the content on was written, the Great Financial Crisis of 2008 was either on the verge of happening or had just occurred. In those days, emotions among this publication’s contributors were raw and, in an effort to get their warnings noticed and appropriate blame placed, occasionally hyperbolic language and shocking imagery were employed.

    Were we to write these entries today, a different tone would most certainly prevail.

    Yet, being a record of a pivotal time in our global economic history, we’ve decided to leave the rawness unedited, with the proviso that readers take the context of the creation of certain posts into account, and that those easily offended re-consider the decision to read them.