Quote from: bhu on September 01, 2013, 12:55:03 AM

We've been working on a program called The Bitcoin Phenomenon for SQ1.tv.

In my view, the closest analogue to bitcoin as an asset is .com domain names, not a currency. Let me explain:

At heart, bitcoin is a protocol. Its initial value was derived from people speculating about its future. Bitcoins were virtually free to mine at its origin. Today, it is considerably harder to create this asset, a bitcoin. Additionally, there is a strong network effect forming the value of bitcoin...the more people that use bitcoin or play in the bitcoin ecosystem, the more valuable bitcoin is as a protocol and the value of each individual bitcoin grows as result.

Back in 1993, .com domains were free. You could register any .com for free. And almost all were available. The next year, Netscape Navigator was launched. And people could see the potential of the commercial web. And a nominal charge was added for registering domains. For one reason or another, the .com standard resonated with both consumers and businesses. Dot-com became synonymous with the web. Over time, the aggregate value of .com domains went through the roof as .com was the commercial standard. The only distinction is that some domains have more value than others whereas each bitcoin has the same value.

Similar to the supply constraint of 21 million, the number of memorable, pronounceable dot-com domains is limited. To find an unregistered .com of any commercial value is difficult, but not impossible; this is similar to mining today. And to those that suggest the supply constraint of bitcoin will hold back its commercial adoption, it should be noted that the scarcity of viable .com domains did not inhibit the growth of the commercial web.

In my view, bitcoin speculation is very similar to domain name speculation from 1994-1997. Its value is entirely predicated on the wide-spread adoption of the protocol.

That's weird. Bitcoin is money.