We’ve heard all the talk from the mainstream media telling everyone that Bitcoin and other cryptocurrencies have no real value. If that happens to be the case then we have to examine all currencies in the same light. Are they backed by gold? Are they owned by private banks? What does it mean for something to have value as a currency? Why is the Mexican Peso or the Chinese Yuan worth less than the U.S. Dollar?
Let’s try to think larger and see the big picture application of cryptocurrencies and blockchain technology. This could be a great investment that yields historic returns, or it could be a bubble ready to burst. But we need to at least try to understand why the current price action on these cryptocurencies may actually be justified.