Re:Beyond the Bitcoin bubble
by thanatropism on Wednesday January 17, 2018 @06:45AM
(#16167145)
> The bitcoin protocol gives bitcoin asset value.
* sigh *
You can't math something into having value.
Bitcoin is structurally deflationary fiat, but it's still fiat. It's not scarce if no one wants it.
Why would people want it? Possibly because mathematical limits suggest it's going to be a store of value -- people want gold because of a kind of civilization-scale madness. But Gresham's law might just kick in, everyone hoards bitcoin to the max and then it has no value because it has no liquidity.
Thus the value of bitcoin is either zero or infinity.
* sigh *
You can't math something into having value.
Bitcoin is structurally deflationary fiat, but it's still fiat. It's not scarce if no one wants it.
Why would people want it? Possibly because mathematical limits suggest it's going to be a store of value -- people want gold because of a kind of civilization-scale madness. But Gresham's law might just kick in, everyone hoards bitcoin to the max and then it has no value because it has no liquidity.
Thus the value of bitcoin is either zero or infinity.