If Bitcoin became the sole reserve currency...

[bitleif]

But you can't have it both ways. There is nothing I did that made me potentially deserve anything when I bought a bitcoin. I simply exchanged one method of storing value for another.

You made a good investment. This isn't any different from people who happen to buy the right stock at the right time. Reality doesn't give a shit about what you "deserve", where did you get that idea from?

Sure, bitcoin has some usefulness as a tool for barter, but why would we attribute a value to it, when bitcoins being traded for bitcoins is pointless. If there is only a finite amount of value just as there is a finite amount of resources and people, then where is that value coming from?  

The value of bitcoin lies in the its technology, the existing network and userbase, the infrastructure, and the brand. The first is no longer unique, but the rest are, and they will be difficult to challenge at this point.

[hunnaryb]

Does not make sence, Bitcoin market cap is too small and the Bitcoin infrastructure almost nonexistent to even think using Bitcoin as reserve currency.

[amencon]

If Bitcoin is supposed to be money, why is one worth $700? Or anything at all?

...

And because you mentioned all the other altcoins-- wouldn't they make Bitcoin 'tech' seem redundant (if that were another aspect of its 'value')?

The value is in Bitcoin the payment network.  Every time a new merchant adopts bitcoin or another service is created to be layered over the protocol or the current network attracts another hour of development time or dollar of venture capital the payment network of Bitcoin increases in value (both "real" and speculative since increased "real" value ought to beget more of the same due to the network effect and as such has an attached speculative value as well).

The bitcoin "coins" have a value because they are the only allowed units of account for this valuable payment network and they are predictably mathematically scarce.

It doesn't matter whether or not you see value in this network.  There are countless things in this world that I don't personally value at all, that if given I could sell and therefore have value regardless of my feelings or anything else.

This is why copying the source of Bitcoin as BitcoinClone won't immediately give a valuation of the BitcoinClone units of account the same value as those of Bitcoin even though the technology is identical.

Hopefully this gives you some insight as to why bitcoins have a value on the marketplace and why altcoins don't make Bitcoin completely "redundant".

Much of my verbiage has been stolen from Erik Voorhees.  I think his method of explanation for Bitcoin's value proposition is concise, effective and easily understood for those who don't see it for themselves at first.  For me the value of a widely established p2p decentralized digital payment network was obvious.

Here's an example of his explanation with more detail if interested:
http://www.reddit.com/r/Bitcoin/comments/1rxmk3/my_open_letter_to_peter_schiff_followup_from_the/

[Erdogan]

A prosperous societey means individual rights, private property AND the general understanding that being rich, not by being friend of the government types, but by the merit of making useful products or services for the consumer, is respectable and deserved.

But you can't have it both ways. There is nothing I did that made me potentially deserve anything when I bought a bitcoin. I simply exchanged one method of storing value for another.

You deserve to have the value that you saved, in full, when you decide to consume. With bitcoin you will have more, for your knowledge and foresight. Or may be, in your case, you were just lucky. It happens.

Sure, bitcoin has some usefulness as a tool for barter, but why would we attribute a value to it, when bitcoins being traded for bitcoins is pointless. If there is only a finite amount of value just as there is a finite amount of resources and people, then where is that value coming from? 

The money's value is the sum of the value that all participants wants in reserve for the immediate future and for the long run. It is not a resource that you can consume, it's value for direct use is zero. The value comes from what you can exchange it for. There is no finite amount of value in money.

[PenAndPaper]

Does not make sence, Bitcoin market cap is too small and the Bitcoin infrastructure almost nonexistent to even think using Bitcoin as reserve currency.

The thousands of nodes all over the world, the massive computing power that being used for mining and all those people working with one way or the other around bitcoin is a nonexistent infrastructure? 

[sgbett]

You should treat water as the precious and very limited resource that it is. You should do your moral part as someone who lucked out in the lottery of life and try not only to not be wasteful of water, but to help those without it. Naturally you don't, you're a self-righteous scumbag who feels entitled to things simply because of a luck of the draw.

Yo dawg' looks like you confusin' sense of entitlement with acceptin' of dealt hand.

Why don't you toss around a few more insults, show us exactly how perfect *your* morality is...

[shmadz]

A prosperous societey means individual rights, private property AND the general understanding that being rich, not by being friend of the government types, but by the merit of making useful products or services for the consumer, is respectable and deserved.

But you can't have it both ways. There is nothing I did that made me potentially deserve anything when I bought a bitcoin. I simply exchanged one method of storing value for another.

You deserve to have the value that you saved, in full, when you decide to consume. With bitcoin you will have more, for your knowledge and foresight. Or may be, in your case, you were just lucky. It happens.

Sure, bitcoin has some usefulness as a tool for barter, but why would we attribute a value to it, when bitcoins being traded for bitcoins is pointless. If there is only a finite amount of value just as there is a finite amount of resources and people, then where is that value coming from? 

The money's value is the sum of the value that all participants wants in reserve for the immediate future and for the long run. It is not a resource that you can consume, it's value for direct use is zero. The value comes from what you can exchange it for. There is no finite amount of value in money.

dude, this is bang on. I bolded your stuff cuz this needs to be better understood.

[Erdogan]

A prosperous societey means individual rights, private property AND the general understanding that being rich, not by being friend of the government types, but by the merit of making useful products or services for the consumer, is respectable and deserved.

But you can't have it both ways. There is nothing I did that made me potentially deserve anything when I bought a bitcoin. I simply exchanged one method of storing value for another.

You deserve to have the value that you saved, in full, when you decide to consume. With bitcoin you will have more, for your knowledge and foresight. Or may be, in your case, you were just lucky. It happens.

Sure, bitcoin has some usefulness as a tool for barter, but why would we attribute a value to it, when bitcoins being traded for bitcoins is pointless. If there is only a finite amount of value just as there is a finite amount of resources and people, then where is that value coming from? 

The money's value is the sum of the value that all participants wants in reserve for the immediate future and for the long run. It is not a resource that you can consume, it's value for direct use is zero. The value comes from what you can exchange it for. There is no finite amount of value in money.

dude, this is bang on. I bolded your stuff cuz this needs to be better understood.

Thanks man. I am fighting windmills.

[piramida]

Thanks man. I am fighting windmills.

No you are not, educating neophites and slow thinkers is an important part of acceptance.

[jones31]

Newsflash for noobs, bitcoin isn't about fulfilling your socialist fever dreams of "wealth distribution". It never will be, and we don't care. Nor do we think wealth distribution the way you are talking about it is a particularly good idea.

I really don't understand the current invasion of socialists and communists on this forum.
Whats the hell is happening ?
I'm sure they only care about their personal wealth when they shout about distribution , but I see more and more posts every day.

[jubalix]

there enough alts to go around for everyone, eg doge coin, and 100s of others....and they can be traded to BTC.

so this argument is just invalid

a more interesting question is will the alts cause a death of a thousand cuts to BTC, or make it stronger by competion, or replacement.....if the BTC are good but too slow they could loose market share.

One thing is for sure, alts have prised the private keys out of Bitcoin holders. Alts almost force a BTC holder and Fiat holder to divest.

<tinfoil hat on>
I thought at one point everything that produces heat will mine, but now its looking like everyone produces heat will mine their own alt.

70 Billion alts here we come.

The 51% attack may not eventuate even with low hash as the moment you don't guard you own chain, you get attacked....and you are forced to run multiple chains so that you can afford to loose some, like chafff....ok I got carried away here.......
</tinfoil hat off>

[Erdogan]

Say one altcoin, say litecoin, will compete well with bitcoin and be just as big as bitcoin. What is the effect on bitcoin? The last doubling of value before the end stabilization will not happen. Yes, we might have 20 doublings from now, the last one will not happen. Conclusion: Hold on to your bitcoins, fear nothing.

[Erdogan]

Well, 20 doublings is a bit of a stretch...

[jubalix]

if it ever comes that far, the current owners of bitcoin can only gain goods by spending their bitcoins.

unlike the current wealthy elite, they can not just print more money.

eventually even the richest bitcoiners will go broke if they keep spending their bitcoins.

well no you buy assets where people pay you in BTC for them, BTC is not destroyed when you send it its just cycles through the system.

BTC can only be lost from the system due loss of private keys, or maybe dust issues, the latter may be soluble