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I have posted many articles on bitcoin and read a hundred more. Bitcoin traded towards, or has possibly already exceeded $18,000/coin. There are predictions of $1,000,000/coin out there. Who knows.

Of all the arguments for bitcoin, its uses, the only one that really resonates with me is the one that argues that where you live in a country with no [honest] banking, no legal system, high inflation, countries like Zimbabwe or Venezuela or any other of twenty crazy countries, then Bitcoin or something like it makes it easier to hide/transport your wealth out of the country.

The real benefit however is not Bitcoin per se, it is the blockchain. It is the non-centralised computer code that provides the benefit.

If I could hold some other form of wealth on the blockchain, then the value of Bitcoin would arguably fall. So I could hold my shares of Berkshire Hathaway, my Treasury Bonds, my deeds to real property and my gold futures on the blockchain.

The value therefore does not reside in the cryptocurrencies, it resides in the blockchain technology. Someone [a programmer] will at some point realise this is make it possible to hold these assets on the blockchain.

Already ‘smart contracts’ are being discussed in relation to the blockchain, it is just another step to any contract. If [when] it happens, what then is the value of a Bitcoin?

 

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