Bitcoin (BTC) is a currency with an unbelievable rate of appreciation, making it far more valuable than keeping money lying around in fiat money. We, humans, are curious creatures and have tried our best to solve Bitcoin's mystery, but we are nowhere close. All we know is that people who were risk-takers and invested in… Apr 21, 2012 - Fiat money is money that derives its value from government regulation or social norms. These are objects that have no or little intrinsic use value as a physical commodity, and derive value by being declared by a government or institution to be legal tender. Examples of fiat money include coins (metals), checks and bills (paper). . You can also use Bitcoin Core as a very secure Bitcoin wallet. Check Detlev schlichter bitcoin mining his other work here. We previously collected donations to fund Detlev schlichter bitcoin mining advertising efforts, but we no longer accept donations. The funds already donated will be spent on some sort of advertising, as intended. As of now ... For simplicity, I will refer to Bitcoin as (potential) commodity money with the justi cation that it has an inelastic supply, following Schlichter (2012b): But equally it is commodity money because it is based on a cryptographic algorithm, which requires time and considerable computing energy to create Bitcoins and which is designed so that the overall supply of Bitcoin is strictly This thinker is Detlev Schlichter, and he uses the history of paper money to support this argument. In this article, we will explore Schlichter’s argument and determine whether or not it adequately explains the origin of Bitcoin value. The Origin of Money By World Imaging [CC BY-SA 3.0], via Wikimedia Commons In the last installment of this series, part 2, we looked at the Bitcoin value theory advanced by Detlev Schlichter. His theory holds that Bitcoin, or any other modern currency, does not need to posses a direct-use value in order to become a currency. The fact that other currencies already exist absolves Bitcoin from having to undergo the full transitory process of going from being a regular ...
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