I’ve made a significant sum, nothing that’ll let me quit my job but significant. Funnily enough it was my job (information security) that got me interested in mining bitcoin as quaint use of cryptography.
That’s a tautological statement though; both ‘Worth’ and 'Value' are completely abstract concepts and entirely subjective. The simple fact that people value bitcoins mean they have value, at least for the moment. (That’s also a tautological statement haha)If you don't create anything of value, it's not worth anything. O_O
It makes more sense if you don’t think of bitcoin as a currency, because currency isn’t the most fitting description for btc; it’s really more of a fungible commodity.I couldn't agree more with you. I guess what makes this appealing is there can only be so many bitcoins in circulation - after this you can't counterfeit them, you can just "print them" like the greenback etc. - Making it a deflating currency rather than inflating.
The reason the value of btc is climbing so quickly is that it’s a very liquid asset (it can be converted into cash very easily), it’s got a steady supply, and its value is increasing faster than that of cash.
But the thing is that bitcoin is only useful as a form of currency, not as a commodity. But almost all of its value is as a commodity. This makes for as textbook a bubble as you can get: the more inflated its value as a commodity, the less its usefulness as a currency.
If the price growth stagnates then people it’s no longer valuable as a commodity and people will sell.
Once price starts to fall significantly, a lot of people will start to sell.
Once the price is falling fast enough, no one will want to accept it as currency.
At which point it will have value as neither commodity, nor currency.
At which point bitcoin will be dead.