I would like to start this off by saying I'm a Crypto-supporter. Blockchain currencies and their supporting networks will make way for efficient, government-free, international transactions. Smart currency-contracts can control many aspects of life: loans, purchase agreements, wills/trusts, and securities. This concept, and the technology behind it is going to absolutely overhaul the modern day financial system as we know it, and there is no way to argue that because it is already happening.
Here is my current concern: Where is the value right now? As I'm writing this, I'm watching Ethereum bobble between $270 and $220 and Bitcoin bouncing around $2450.
Obviously there will be value in the future as the usability increases. But right now there are virtually no trustworthy or realistic wallets to use for purchases and there are virtually no businesses that accept these currencies. Bottom line, I can't go to the corner store to buy a stick of gum for .001 Ether.
Other than the chance to make a quick buck trading the funds, why is somebody purchasing cryptocurrency?
WHERE IS THE VALUE!? I AM A SILLY HUMAN! I can't feel it! I can't see it!
Very reasonable question! The reality is that crypto has value because people give it value. That is why any currency, even paper money, gets its value.
Yes it is a speculation vehicle. It is also a store of wealth. Many people use it as a savings account. And yes, some even use it to buy things (farmers markets in New Hampshire accepting Dash for example). It is easy to transfer, and there are few government regulations or taxes. Sounds like it has value to me!
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I'm also a big believer in blockchain teachnology and like you, cant quite wrap my head around why these coins are worth so much. If found this after a little googling:
"Because things that are durable, transferable, divisible, scarce, recognizable and fungible have value. Bitcoin is all of those things, and all of it is backed by an enormous distributed network of bitcoin miners and a worldwide network of bitcoin nodes. How much value depends on how much people trust bitcoin and how widely used it is, and because that is not knowable at this point, bitcoin is very volatile in relation to other currencies."
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