/biz/ - Business & Finance

>>19367865
Unlike gold having some unique aesthetic and physical properties establishing its price's lower bound, bitcoin cannot be used directly for anything other than storing value and transfering it.

BUT in practice you cannot use bitcoin to transfer value because of high transaction costs in both time and money. As OP pointed out, in future it will only get worse to the point of theoretical impossibility.

SO the only value of bitcoin is its perceived utility as a value storage. Here things get tricky. Can you notice the circularity?

Limited supply is a necessary but not sufficient requirement for something to have value. Everything that is valueable must be scarce, but not every scarce thing is valuable. Blue-eyed black lemur's shit is extremely scarce, as there are only thousand or so of those animals, yet you don't see it being sold at high prices. You don't see it being sold at all, because it has perceived value of exactly 0.

And bitcoin will be no different than blue-eyed black lemur's shit when the bubble finally burst and network collapses.