Quote from: bitteeinbit on February 02, 2015, 02:49:53 AM

I have to admit that I'm sceptical about Bitcoin. I'll give you my reasons, then please convince me!

I think nobody but you should convince yourself about this.

Quote from: bitteeinbit on February 02, 2015, 02:49:53 AM

Bitcoin is not backed by anything. It would probably not exist in a free market. Money in a free market has always been some kind of commodity. Something that has value beyond its use as a currency.
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Bitcoin has none of that. It's just a string of 0s and 1s. Where does it get its value from? I don't think in a free market it would be valued.

Bitcoin has a network behind that performs a really huge number of operations to keep itself secure. This is value.
Bitcoin can be used without registering/opening an account somewhere. It means ANYONE can use it. Even if there is not banking infrastructure like in Africa. This is value.
Bitcoin allows quick and cheap transactions anytime anywhere without needing third party consensus. This is freedom and this is value.
Bitcoin opens the doors for new hardly-imaginable technologies (like automated-open-source-companies owned by nobody, but it's too early to talk about this). Innovation is value.

Quote from: bitteeinbit on February 02, 2015, 02:49:53 AM

Something like Bitcoin could be used as a currency if it was backed by some commodity to do anonymous/quick transactions, but there would be a standard, ultimately, for exchange. It would always be exchangeable into e.g. gold. So that the banks who issued the Bitcoins were contractually obligated to redeem them into gold. Then Bitcoin would serve as a currency, but the money would be the gold.

It would be a huge error. Imagine that one day someone finds a chemical way to turn matter into gold. Everything would lose value instantly.

Quote from: bitteeinbit on February 02, 2015, 02:49:53 AM

There's also the problem with Bitcoin of inflation. Yes, there's a fixed amount of Bitcoins qua Bitcoin, but anyone can create alternative cryptocurrencies. I don't see why Bitcoin has any unique features that cannot be replicated by others, and therefore you will create massive inflation in a digital coin space.

It's not enough to create a new cryptocurrency: something like bitcoin miners are needed to make it safe. Up to date no altcoin is safe as bitcoin is, so I wouldn't say that inflation is unlimited. Bitcoin has a planned inflation and it's well known in advance. You can create your funkycoin, but the day it may become interesting, only one small bitcoin miner is enough to turn your crypto upside down.

Quote from: bitteeinbit on February 02, 2015, 02:49:53 AM

So why do I think Bitcoin is still valued today? I think it is because people are fearful of the dollar.

I don't agree. Bitcoin's value is like a rollercoaster, I am not sure people could trust it more than the USD yet. However people can trust it for what it is: something complete new that has so many innovative features that it can change and improve the world.