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You exchange it for whatever currency you desire to make smaller transactions with. Even with slow scaling, it should remain suitable for large transactions.

You exchange it for whatever currency you desire to make smaller transactions with. Even with slow scaling, it should remain suitable for large transactions. As a store of value, it has many desirable properties. There is a fixed supply, it can be used anywhere with internet access, it is secure, and it is very inexpensive to hold. Gold, for instance, has a large potential supply, is very difficult to move and secure (e.g. vaults, armed guards), and typically requires you to trust a 3rd party (most hold gold IOUs, not the physical bars). If you accept that there is a demand for such a store of value, then you must recognize the value of cryptocurrencies. There is also a great deal of potential value as technological solutions to the scaling problem are found, as well as new uses for Nakamoto-style networks.

ForHackernews 9y ago
> it is secure, and it is very inexpensive to hold https://storeofvalue.github.io/posts/cryptocurrency-hacks-so-far-august-24th/ https://storeofvalue.github.io/posts/cryptocurrency-hacks-so...
Havoc 9y ago
>You exchange it for whatever currency you desire Exchange how? Your entire argument assumes a functional BTC eco-system (and exchanges with willing counter-parties). Without usefulness in transactions BTC's only value is whatever is agreed on. And in the absence of a use that is worse than fiat currency - at least that has legal backing rather than just agreeing that BTC has value as a value store. It's the essence of circular logic: BTC has value since it is a store of value and since it's a store of value it has value... >If you accept that there is a demand for such a store of value, then you must recognize the value of cryptocurrencies. I do - just not BTC. Anyone sane will store their value in something that has an actual shot of being grounded in real world transactions. So ETH or whatever is a far better bet.

ForHackernews 9y ago

> it is secure, and it is very inexpensive to hold https://storeofvalue.github.io/posts/cryptocurrency-hacks-so-far-august-24th/ https://storeofvalue.github.io/posts/cryptocurrency-hacks-so...

Havoc 9y ago

>You exchange it for whatever currency you desire Exchange how? Your entire argument assumes a functional BTC eco-system (and exchanges with willing counter-parties). Without usefulness in transactions BTC's only value is whatever is agreed on. And in the absence of a use that is worse than fiat currency - at least that has legal backing rather than just agreeing that BTC has value as a value store. It's the essence of circular logic: BTC has value since it is a store of value and since it's a store of value it has value... >If you accept that there is a demand for such a store of value, then you must recognize the value of cryptocurrencies. I do - just not BTC. Anyone sane will store their value in something that has an actual shot of being grounded in real world transactions. So ETH or whatever is a far better bet.