The True Value of Bitcoin
Charlie Lee, the founder of Litecoin LTC, recently stated the true value of Bitcoin in an interview. Although the price of cryptocurrency is primarily determined by speculative trading, the intrinsic value of coins is complete different.
Li aims to reduce the intrinsic value of coins by breaking the four basic factors of coins. He first provided the background of the quotations of the current chairman of the Federal Reserve Board and the famous stockbroker Peter Schiff. These citations claim that the cryptocurrency does not really have intrinsic value, which Schiff called "the gold of the digital fool."
However, Lee puts forward the opposite view, saying that he has 4 points to make Bitcoin intrinsic. He first talked about how bitcoin coin can't be cultivated because it can't be changed by one person, company or government.
To illustrate the implications of reviewing resistance, he proposed anecdotes in his life.
Lee said he played online poker in 2010 and 2011, when the online gambling industry was at its peak. However, he mentioned an example in which the US government accused the three online poker markets of wire fraud, bank fraud and money laundering.
Li said: "All payments on the poker site have been blocked. Visa payments, MasterCard payments and any payment processor. Online poker is effectively reviewed. This is my money, why can't I use it online when poker is legal? This is a skill game. After a few months, I found Bitcoin. It is not controlled by any government, it is not controlled by the company, you can play online poker, no one can stop you."
He went on to say that the intrinsic bitcoin value comes from its inability to stop spending, just like the legal currency provided by the government.
The second point raised by Li is that the transactions on the Bitcoin blockchain are immutable. Due to the general design of the blockchain and the proof of work algorithm, if you do not work and change the block header of each block in the blockchain, you cannot change one transaction in the previous block.
Lee compares it to a miner pushing the chain deeper into the ground, adding each block to the chain, and doing a lot of work when trying to change the trade in the first block of the blockchain. He said:
"If you send someone a million dollars, that person would want to wait an hour or a day, because once it enters the blockchain and there are many blocks on it, it is virtually immutable. For all intents and The purpose of changing the transaction is not cost effective." That’s it, if you want to get more bitcoin news, please do follow me!