It's interesting you put it that way.

Actually all money is a speculative play. That's why it's problematic historically.

When you accept something not generally used or consumed, but instead for the purpose of later exchange for something you value, i.e. money, you speculate it will hold near a certain measure of value. You don't know that it will, but you can have reason to believe it will.

This is what makes fiat money dangerous. Unless it's backed by something with a long history of holding value, like gold, then the only reason for believing it will hold value rests with the government decreeing it has value. Unfortunately due to government tendencies this has been disastrous historically resulting in hyperinflation, rapid loss of fiat value, and people becoming poor overnight.


I find this also funny. For what reason do you think the majority of people who buy bitcoins do so?

I get the feeling you think the only people that would seek any crypto-coin other than bitcoin are people desperately trying to be an early enough adopter to get rich.

I'm sure there are some like that, just as there are with bitcoins. However, I didn't start supporting Litecoin for that reason. Indeed, I pretty much ignored alt-coins until the uproar over the announcement of Bitcoin Foundation. What I witnessed and realized was that there could be strongly irreconcilable opinions about things affecting Bitcoin, even to the point of threatening the project entirely. Bitcoin relies on the free market, and I believe is actually a product of it. What dawned on me was there was and could in the future be severe market pressures bottled up within Bitcoin. A market without choice is dysfunctional because dissatisfaction goes unanswered. I believed Litecoin, which had the most traction of alts at the time, could provide an adequate pressure release valve, so to speak.


Yes it does. If you suddenly become the sole Coke drinker it will cease being profitable and cease to be made available.


Bitcoin's value is subjective. As I said above people speculate about the value of all forms of money.


That's true of all money as well.

The truth is as long as at least one other person values a thing, the thing can serve as money. Litecoin, or any other alt-coin, doesn't have to have a market size equal to Bitcoin to be considered a success; the market can be larger, smaller, or commensurate. The point is I discovered a reason for such a market to exist. Until that time I didn't see why anyone might prefer an alternative to Bitcoin.


No.