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comment by user-inactivated
user-inactivated  ·  2580 days ago  ·  link  ·    ·  parent  ·  post: What will the price of Bitcoin be one year from today?

i agree that gets us part of the way to an explanation





mk  ·  2580 days ago  ·  link  ·  

From one perspective (perhaps a frustrating one) that's the whole of it.

The dollar bills in my pocket seem slightly silly things, and I think they will seem only more so with time. It's not just their backing, but their scarcity that gives them value. They stop at small denominations because their scarcity is largely an equation of ROI.

The numbers in my bank account seem a bit crazy to me. I need to trust so much that I have so little power over.

user-inactivated  ·  2580 days ago  ·  link  ·  

however, bitcoin is not a currency

mk  ·  2580 days ago  ·  link  ·  

That doesn't matter much when it comes to its value. It has some useful properties of currency, and lacks some undesirable ones. It has its faults too, but it needn't be a currency to have value.