In a week when bitcoin is setting records with a market value exceeding a trillion dollars, what would it mean if cryptocurrencies succeed?
The only reason all the bitcoins are worth a trillion dollars is the expectation of success, as they are not very useful today. Cryptocurrencies must provide some valuable service if they are to justify their high valuation, otherwise holding bitcoin is just like collecting stamps or beanie babies – a minority activity that does not justify the current $51,000 price.
But what is the valuable service that makes bitcoin successful?
Author(s): Jon Danielsson
Publication Date: 26 February 2021
Publication Site: Vox EU