HomeTodays NewsBitcoin’s [BTC] value is derived from social consensus and its ‘uncensorable’ aspect, claims Samson Mow
Bitcoin’s [BTC] value is derived from social consensus and its ‘uncensorable’ aspect, claims Samson Mow
May 28, 2019
With the cryptocurrency industry being the topic of discussion between peers and crypto-enthusiasts, Bitcoin [BTC] has now become the predominant asset in the crypto-verse. It is the most popular crypto today and is reputedly backed by major personalities. However, most people still fail to understand what value resides within the largest crypto-asset.
Samson Mow, CSO at Blockstream, gave his input on the subject during an interview recently and suggested that “social consensus” gave Bitcoin its intrinsic value.
“Social consensus is what drives the value up for a lot of money. Why does gold have value? Yes, we can make jewelry out of it but it is largely because we decide that it’s valuable for various reasons like it’s shiny, it does not rust, etc, etc.”
Mow also stated that Bitcoin was valuable because it was a non-correlated asymmetric return asset, which was also “uncensorable” as it was impossible to block Bitcoin transactions.
Mow insisted that Bitcoin was a good store of value and stated that people who invested in Bitcoin two years ago would currently be holding an amount four times their original investment. He pointed out that a lot of Bitcoin’s media critics focus on the coin’s volatility, which was based over a month or a week, but was not an indication of long-term growth.
He added that Bitcoin was not necessarily required for only countries with weak economies, but could be utilized by developed countries as well because it was really easy to create transactions on the Bitcoin blockchain.
“Bitcoin doesn’t close on the weekend or holidays. And you know if you are doing an international wire transfer, there are a lot of pain points in terms of high fees. With Bitcoin, you can send millions of dollars, for just a dollar probably.”
Finally, Mow mentioned that user experience in crypto-assets had its own challenges currently, including managing their keys, which was difficult. However, he said that the community was moving in the “right direction” as developments were being carried made to make things easier and to initiate better key recovery technology.