[Gunslingr3]

Tulips rot, but ledger entries in the blockchain do not. It seems to me you don't know much about what bitcoin is. This is one of the best layman explanations for how the blockchain works. It's worth understanding, unless you have complete faith in the politicians and banks that control the value of fiat currencies.

[867V309]

Tulips rot, but ledger entries in the blockchain do not.

Tulips rot? You don't even know about Tulip mania do you?

[cincinnati65]

Within 45 seconds, the video acknowledges that Bitcoin is a fiat currency that's only value comes from the willingness of holders to exchange bitcoin for goods and service.

Now that the "cat is out of the bag" regarding how Bitcoin works, and with relatively low barriers to entry in the market, there will soon be many competitors.

If you think of these currencies as individual electronic "nations", the only thing that will differentiate the currencies will be marketing and faith in the currency itself.

Now, you can talk about how the dollar is a fiat currency, but in the end there is nothing standing behind Bitcoin in and of itself. There is no economy based on Bitcoin. No goods and services that originate in Bitcoin denominated transactions.

It's value will only be based on wild volatile trading market swings.

If a country based currency's price drops, that may hurt my ability to exchange internationally, but domestically, there's an economy that supports a reasonable exchange for the currency. With Bitcoin, if the price drops, my ability to exchange will be hurt universally.

I think this volatility will ultimately be Bitcoin's undoing. Enjoy the ride while it lasts.