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November 03, 2018, 02:12:09 PM |
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Bitcoin is a currency. It has all the characteristics of a currency, the most basic being that it is used to pay for something. Commodities are not used that way.In my view the value of bitcoin is based on its ability to do easy and highly secure money transfers and payments, particularly across borders.On top of that, speculators predict its monetary value by estimating its use in the future, in a couple of years, and they seem to come up with a factor of 50, meaning that 50 times as many bitcoins are currently hoarded by investors in the expectation that their use as money will increase 50-fold. It is possible that part of this figure of 50 is caused not just by expected future use as money, but by governments driving people into bitcoin by debasing their own currencies. It is debatable whether that is something different from expected future use or the same.
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