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June 21, 2011, 11:28:36 AM |
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Many people have been arguing what is the real value of Bitcoins. Some say that there is no value for them as they don't represent anything. However, I believe that Bitcoins have one real value.
Currency.
"What? The real value of a currency...is currency?"
Well let me exlain. Think about it. No matter where you go in the world, you can use Bitcoins. No matter where you are, whether you're in Switzerland or Texas, Bitcoins will have some kind of value. And there are many different websites allowing you to trade Bitcoins into other currencies. So while the idea of the Bitcoins themselves having value could be argued, I believe that it's essentially a glorified bargining chip.
For example, say you wanted to order a book from the UK using Bitcoins. The seller from the UK would see the coins as valuable because they could either keep them and treat them as stocks, or they could trade it for around £10 per Bitcoin. A single bargining chip becomes 10 pounds. That in itself would make it valuable to the seller. It's also useful for the buyer as they have complete control of their transactions due to it's non-revertable nature, and because (in some cases) it's easier to use a single bargining chip than risk information with their credit card.
In my opinion, for a currency to really stand up on it's own it has to be based on something measurable and valuable in society. While Bitcoins may not represent anything directly valuable, they represent the one thing that keeps the worldwide economy going. And that in itself makes it a valuable part of economics right now. Even if it's impact is, as a whole, minimal.
Anybody else catch my drift?
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