Comment: I do not know the truth about

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I do not know the truth about

I do not know the truth about bitcoin and believe there is never a "sure thing" when investing.

I will say though that I disagree with your assessment that a bitcoin represents nothing.

Mises argued that in a commodity backed system it does not matter what the size of the unit of account is. He was not concerned about deflation if the economy expanded and there was not central bank inflation because as the medium of exchange became more valuable people were free to transact in smaller units.

Bit coins do have a tangible physical existence. They exist as 1's and 0's on a hard drive. Now you may say this is almost as close to nothing as you can get and I would agree. It may be next to nothing, but it is not technically nothing. This is interesting to think about in the context of austrian theory because with ecommerce there is no mathematical limit to the divisibility of a bitcoin where there are practical limits on the divisibility of gold.

This characteristic gives it qualities that no other currency could have. It allows it to be exchanged instantaneously and practically anonymously. It allows users to transact OUTSIDE of the federal reserve system.

The market values goods AND SERVICES. I think you are discounting bitcoins service value. The value of bitcoin in my opinion is not in its infinitesimally small commodity value but in the value of bitcoin as a service. How much does the market value the service of transacting in a medium out side of federal reserve and governmental control? What is the price of a bitcoin?

The service is real. you really can buy and sell bitcoins and trade those bitcoins for real products. This is not a scam. If the market decides that this is not a reasonable medium of exchange then the service quality of bitcoin would return to zero and it would have only its commodity value (next to nothing.)

If you want to store your value in something with limited risk, buy precious metals. If you want to participate in ecommerce outside of the fed/gov monopoly, use bitcoins. try doing that with silver.