Paul Kemp-Robertson: Bitcoin. Sweat. Tide. Meet The Future Of Branded Currency
This video is an interesting take on branded currencies.
What 6 months can do to Bitcoin? This video was filmed back in June 2013 and now Bitcoin is standing at USD $800.
I like to add to the video that an item having the store of value property need people to commit other existing assets into the item first. For example, a bottle of Tide (you have to watch the video to understand) being used as a medium of exchange requires existing money (or any other store of value items) being committed first in exchange for the bottle of Tide. This point has been missed by both supporters and haters of Bitcoin.
The value of a virtual currency comes from the value of the other accepted assets already committed in exchange for the virtual currency. Since we know a lot of money and efforts (which takes money too) have been committed into Bitcoin and other virtual currencies. This alone gives you a valuation of Bitcoin above nothing. This is how we evaluate companies not making money. This is how we evaluate countries. You cannot all of a sudden telling yourself the evaluation method human has used for eons does not apply to virtual currencies.
In other words, many people think that Bitcoin does not worth anything missed the point.
A famous antique painting being committed with $40 million dollars from its latest buyer worth every penny of the $40 million dollars as long as it is real (i.e. what the painting is claimed to be in terms of the painter and picture in question). The operative keyword here is that it worth more than zero. The same logic applies to virtual currencies because existing value has been transferred into these virtual currencies already.