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Showing posts from July, 2011

Bitcoin does have intrinsic value

In response to an article which states that bitcoin has no intrinsic value , here are my thoughts. Bitcoin does have characteristics which make it potentially more userful than than existing mediums of exchange. It is has near-zero transaction costs. Compare this with Visa/MasterCard. And try sending gold in the mail. Bitcoin also has real intrinsic value because it is more secure than Visa/MasterCard in that the recipient of payment cannot extract from your account more than you intended them to. When you give someone your credit card number, they can then use that number to take any amount of money they want from you. When you send money via bitcoin, they can’t because you aren’t sending your private key. With Visa/MasterCard we are giving our private key to a merchant. Bitcoin is not a crazy idea, Visa/MasterCard is! By reducing cost of money exchange world-wide, Bitcoin has huge potential economic benefits for the world economy. Who is a potential customer for Bitcoin? Ever