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There are also people, who have faith in this third generation mode of transaction. Despite the rapidly increasing Bitcoin’s exchange rate against fiat currencies, there has been a lot debate that whether Bitcoin has a value or not.
An article published last year in April on Business Insider argued over the intrinsic value of Bitcoin. Joe, the author of that article, referred to various voices that in some way either supported the idea or went against it. Some of the questions that were raised and answered in this article were pretty obvious one. The first assertion that has been made by the proponents of Bitcoin is that its value will continue to rise, there will be no deflation, and since there is only a certain limit to which Bitcoins will be produced i.e. twenty one million. Joe argues that Bitcoins are not collectable items that are to be stored and hope that their value will rise due to scarcity in production, because it is not compulsory that anything which has a limited production will eventually gain some value. Moreover, since it is a virtual concept, it can be cloned easily and replaced. He further explains the concept of fiat currency in comparison to Bitcoin, and he has tried to prove that why it is necessary for a currency to have backing from strong authorities, and the volatility of currencies that are not being authorized by governments. Authorities not only maintain regular check and balance while fortifying currency, but they also provide a specific degree of insurance security in certain cases. Another factor that will prevent Bitcoin from attaining a slot as an alternate to fiat currency is that there are only few people who are ready to trade virtually. Therefore, Joe believes that there is no reason to consider Bitcoin as Gold 2.0.
Jay Yarow (n.p.), probably Joe’s colleague at Business Insider, wrote earlier this year an article about Bitcoin and one of its ardent proponents. In his article he referred
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