Why bitcoin is more than a made-up investment bubble

And, of course, that’s exactly what the programmers and utopians backing bitcoin would like and expect to see – deep skepticism among the financial mainstream toward an alternative global payment medium.

A new Bloomberg Global Poll of finance professionals found that 55% say bitcoin represents an unsustainable investment bubble, and another 14% contend it’s on the verge of a bubble. This suggests that those bidding for bitcoin near current prices just above $600 are merely participating in a speculative mania in an asset with little underlying value.

Yet, as I discuss with Yahoo Finance host Milanee Kapadia in the attached video, it’s important to separate the potential for bitcoin as a useful payment system from its purported merits as a store of value with upside appreciation potential.

As a global, anonymous, secure way to purchase goods and services or move funds around, bitcoin is an ingenious and seemingly effective effort.

Bitcoins are produced by computers, which compete to solve intricate math problems. A specific number can be created each year until, in a few years, a finite limit is reached and the number of bitcoins in existence is fixed for all time. Opening an online account allows a user to hold or send coded, verified bitcoins largely anonymously at no direct cost. Some 5 million bitcoin “wallets” have been created, and more than 60,000 vendors accept them in some form

Cool......we ran a series here , few months back