Sunday, December 24, 2017

Intrinsic uses of bitcoin

One often sees the false assertion that bitcoin has no intrinsic use in the sense that one can use gold to make jewelry (although such use a counts for a tiny percent of overall market cap in gold.)

Bitcoin does have intrinsic uses. For example, one can encode a hash value of arbitrary data in a transaction for purpose of depositing that hash on the blockchain, which is an immutable record. Thus, it is like a trustless spin on a public notary. There are other intrinsic uses which leverage the double spend protections to implement trustless mechanisms for tracking transfers and exchanges of physical or other virtual assets, via rigorous analogy to bitcoin - by encoding representations in literal bitcoin.

When seeing the assertion that there are no intrinsic uses, it may be worth asking how well researched the piece as a whole is likely to be. These uses have been recognized for some years now.

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