Bitcoin Redux

What can you say?! Up about 25% in just a few days. And after a long couple years of bad news (Mt. Gox bankruptcy, being deemed a "failed experiment", that block chain itself getting all the attention, and claims of being "Satoshi Nakamoto" going unauthenticated), the coin is BACK!!!

It seems the reason isn't just about Bitcoin's exchange rates against fiat currencies, having volatility in and among themselves lately. But rather, the reason likely boils down, and deservingly, to the Bitcoin community themselves.

Value of something is mostly a matter of perspective. Take the the human condition, its irrationality, and how it perceives value of and attaches price to personal ownership of cars. Which destroy the planet, make us less fit, kill/injure numerous in accidents, require paving over cities which could otherwise have grass, and confine us to traffic jams. And the price those same humans attach to water. Which is vital for life. Don't get me wrong. I marvel at the engineering of sports cars and like my water cheap, but let's get back to the coin.

Currencies on the other hand as a measure of value, fiat or otherwise, are a bit different in that they represent the value of the locale from which they are issued, because they are typically only honored within that locale.

So what is the locale of Bitcoin. Well, it's wherever the Bitcoin community is. Is there value in that community? If the Bitcoin Core updates on the way, development of "lightening networks" to make Bitcoin viably fast for payments of any small size (vital to qualify per the definition of currency), and claimants who filed with the trustee overseeing the Mt. Gox bankruptcy recently receiving long-awaited word on the status of their claim is any indication of value this community can deliver. Then the answer is yes.

Crypto-currencies, despite difficulties of Bitcoin being the first, are likely too important to human history, and certainly individual holders, for the community to just let tank. The Bitcoin community rose to the challenge of shoring up short-comings so far. There's no reason to think they won't continue to show such value, and thus value in the currency of their community. We should congratulate them on a job well done and value their currency. They deserve it.