Prediction evidence

Ma

Matt Hougan

@Matt_Hougan

Adam -- Think of bitcoin as a service. The service it provides is the ability to store wealth in a digital format without a government or a bank. We are all used to services having value. For instance: Microsoft offers a service; the ability to edit Word and Excel documents, access cloud compute, etc. The more people who want that service, the more valuable Microsoft is; the fewer people who want it, the less value Microsoft is; if no one wanted it, the value would be zero. The same is true of bitcoin. The difference is, Microsoft is a company. To access its service, you can pay a fee to Redmond. Those fees are aggregated and paid out in dividends. Bitcoin is not a company. The only way to access its service is to buy the asset. If you buy the asset, you get the service. Your (eminently reasonable) criticism is that you don't like the service bitcoin provides. But millions of people do. I think if you frame it as a "service" you can get close to the debate of its future value. Will more or fewer people want a digital way to store wealth that doesn't rely on a government or a bank in the future. I suspect the answer is more, but we will see!