Topic: What does Bitcoin’s use as a DAR imply for the underlying price of bitcoins? (Read 1129 times)
January 01, 2014, 05:33:14 PM
Before we get too far ahead of ourselves this kind of functionality will require laws to be changed to accommodate it. It will not happen overnight.
January 01, 2014, 05:21:11 PM
That would give Bitcoin inherent value.
Kinda like gold can also be used for jewelry and electronics, the more other things that Bitcoin can be used for, the more inherent value it gains.
Kinda like gold can also be used for jewelry and electronics, the more other things that Bitcoin can be used for, the more inherent value it gains.
January 01, 2014, 05:12:52 PM
At least as far as I can understand it, the benefits of using the blockchain as a kind of Digital Asset Register (DAR) through a scheme like Mastercoin or colored coins make a compelling use case. Assuming this is true, what, if anything does this imply for the market price of bitcoins?
As long as the bitcoin mining bounty plus transaction fees are valuable enough that people will be incentivized to mine them at a sufficient rate that the block chain can’t be easily compromised, then it seems to me that the block chain’s utility as a DAR wouldn’t necessarily have any direct impact on the price. On the other hand, if the block chain were widely used as a DAR, that would probably mean that bitcoins would have become widely used as a monetary unit, which implies a high value for btc.
Is my understanding correct?
As long as the bitcoin mining bounty plus transaction fees are valuable enough that people will be incentivized to mine them at a sufficient rate that the block chain can’t be easily compromised, then it seems to me that the block chain’s utility as a DAR wouldn’t necessarily have any direct impact on the price. On the other hand, if the block chain were widely used as a DAR, that would probably mean that bitcoins would have become widely used as a monetary unit, which implies a high value for btc.
Is my understanding correct?
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