Sunday, May 12, 2013

12/5/2013: How Bitcoin works


Anonymous said...

It left out the giant pyramid :)

The stored work that a bitcoin represents has no value to anyone (or negative value if you count the fact that bitcoin mining = wasted CPU cycles = wasted energy = wasted value ).

At least you can pay your taxes and thereby avoid jail with a fiat currency, and Pokémon cards have cute little monsters on them that you can trade with your friends.

It represents a speculative opportunity purely because people will bet on anything.

Anonymous said...

You left the part where perception is what makes things valuable.

Fiat currency is just a worthless/valuable as BTC, the only difference being that it's a socially acceptable form of payment. BTC is on the rise and is being accepted as currency by more businesses daily, and the demand for mining hardware is only on the rise.

You're right, people will bet on anything but sometimes those bets pay off.