Originally Posted By: ireckon
Anyway, is anybody here using Bitcoin? What's the appeal for you?
I have some. I'm a computer scientist; I got involved because partly because it is intellectually fascinating. It is a kind of internet of money, in that the core concept is really about ownership, with currency merely the first application. Other systems will be built on top of it. Part of the attraction is that it enables permissionless innovation.

Another part is that it's a trustless system (more or less), in a good way. With dollars, you have to trust the government not to print too many of them. You have to trust the bank to look after your account. With Bitcoin, it's all based on mathematics and open source code. It's decentralised. This is important because when money is managed by a central entity, that entity has enormous power, and history shows that the power always corrupts eventually. The buying power of a dollar is a fraction of what it was 100 years ago, and that's one of the better currencies.

For some people (not me), the attraction is its potential for anonymity. Although the block-chain is a public ledger, it only stores account numbers, not real-world names and addresses. In that regard it is like cash; but with the difference that it can be sent over the internet.

For some retailers, the attraction is that Bitcoin has lower transaction fees and that transfers are irrevocable. Credit card fees and charge-backs are a big expense for retailers.

So there is a lot of potential in Bitcoin, a lot of value. And a lot of people can see that value. That's why it's still worth something, even after a long run of bad Bitcoin news. The final attraction of Bitcoin comes from this belief that it has a future, and that demand for coins will increase, and therefore buying coins now is a good investment.

Arguably Bitcoin is not very important in America, where the existing financial infrastructure is pretty good. It should be more important in emerging countries, where a lot of people don't have bank accounts (but they all have mobile phones).

I don't consider it very relevant to the interest of this forum. As a possible investment, it's very high risk. No-one should spend more on it than they can afford to lose. As a hedge against financial collapse, or hyper-inflation, gold is surely more reliable. (Or bullets, or first aid supplies, or toilet paper, or whatever.)
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