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I disagree that Bitcoin is a collector's item. Bitcoin is a network composed of many different kinds of software systems, the Bitcoin cryptocurrency represents
by cryptica 6y ago
I disagree that Bitcoin is a collector's item. Bitcoin is a network composed of many different kinds of software systems, the Bitcoin cryptocurrency represents the core unit of account of this network; the value of Bitcoin is thus derived from the demand generated by its network. Through the economic value that they provide, software systems which integrate with Bitcoin (either as a payment system or store of value) generate a constant stream of automated demand for BTC.
Bitcoin therefore acts like a share of the economic value provided by its network. Not so different from fiat currencies such as Dollars and Euros but its value is more tightly integrated with its network since software systems have a stronger technical lock-in factor (whereas fiat relies more on legal and psychological factors for lock-in).