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Why Does Bitcoin Have Value? (aier.org)
4 points by alwillis on Jan 11, 2021 | hide | past | favorite | 5 comments



The article is also available as a podcast: https://bitcoinaudible.com/?p=5444


Short answer --- for the same reason tulip bulbs had a lot of value back in the 1600's.


There are plenty of legitimate reasons to deride Bitcoin but comparing it to tulipmania is really tired and just plain wrong for so, so many reasons. Read up a little on what actually happened during Tulipmania - how many people were effected, and the role of the nascent futures contract and government action/ability to take action.[0][1] Bitcoinmania isn't the same in scale, nor in the underlying fundamentals of the commodity being speculated on, and certainly not in the ability for government to take action.

[0] https://www.history.com/news/tulip-mania-financial-crash-hol... [1] https://www.investopedia.com/terms/d/dutch_tulip_bulb_market...


I think it has more going for it-it is fungible, they can't print more of it, it is secure, and a critical mass of people agree that it has value.


The article is worth reading and considering.

The tulip thing lasted a few months while bitcoin has been the best performing asset of the last 5 and 10 years. Very different.




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