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Comment: highest and best use

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highest and best use

The true value of something is its highest and best use. For example, land is finite but that alone is not what gives it value. If I had several acres of land in a major metropolitan area, it's best use would vary depending on what I did with it. I could sit on it and it would be worth $x. I could put condos on it and it would be worth $y. I could put a store on it and it would be worth $z.

Similarly, I could use gold to make a hammer, melt it down and use it as a wire, I could sell it, I could hold it, etc.

With bitcoin, you can sell it, exchange it for goods and services, you ciuld even choose to hold it. Right now, during this rally, the best use for bitcoin is to hold on to it because whatever you buy with it might not gain in value as rapidly. Then again, exchanging it for litecoin might be the best use. I think the major concern for doubters is that bitcoin doesn't have as many alternative uses as say gold. You can't make a bitcoin hammer if you are left holding the bag. With gold you can at least make a pretty trinket. Then again, would you even do that with gold?

FRNs are worthless except for faith, although they could still heat your home or clean your bum if they were worthless as a means of transaction. Odds are, if you kept $1000 in FRNs, in 20 years from now, you would have kess purchasing power than today. Bitcoin will either gain against worthless fiat currencies in the long term as long as people consider them useful for transactions. There are more and more merchants and exchanges opening up each day, this would indicate that its function as a means of transaction is on the rise while the supply is finite. Considering the global trend towards absurd tax rates on transactions, the number of markets willing to accept cryptocurrencies will continue to rise. I think there won't be enough bitcoins to meet that demand, thus increasing their value. This is also why I think things like litecoin will gain as well. There's probably enough room for 8 or 9 competing currencies that have been fully mined. This won't all happen in one month of rallies. Don't think of bitcoin as a way to become an overnight millionaire, think long-term.