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Tulips have an inherent value and so do Bitcoins. Bitcoins are a tool to transfer and store value. There are transactions that are more expensive in the tradit
by closedloop129 4y ago
Tulips have an inherent value and so do Bitcoins.
Bitcoins are a tool to transfer and store value. There are transactions that are more expensive in the traditional banking system. Determine their value and the time they need to stay in Bitcoin, and you know the minimum market capitalization of Bitcoin. On top of that, you have people who want to diversify their investment portfolio. They keep some of their value in Bitcoins and thus reduce the supply of available coins for transactions which increases the market capitalization because you have to transfer the same amount of value with less coins.
- jimsmart 4y ago> Bitcoins are a tool to transfer and store value. They're way too volatile to be any useful kind of store of value, as this month's ~33% drop in value has just proven. Nobody wants their stored value to depreciate that quickly and unexpectedly. That's simply not a good store of value — arguably it's not a store of value at all by most definitions.
- haskellandchill 4y agoEven with such volatility they are usable, but it's certainly not ideal.