Bitcoin has no material substance; but it only exist in an environment of massive computer power which deploys energy to give effect to the complex algorithms and mathematical structures that it rests on, and the massive security networks that have been proven breachable at several points on various occasions.
The amount of brainpower that is included in the system and in its use has to be paid, fed and watered; as do all the traders and buyers who have now joined in the bubble. I have also seen massive estimates of the cost of the electric power that had been - and is being - consumed in the process.
The bitcoin bubble will burst: though the notional 'currency' may survive [as the South Sea Company survived the crash that ended that particular bubble]. More importantly, millions of people know a little about blockchain which will almost certainly develop as a massive set of tools of commerce very beneficially: but the costs of constructing and operating any such systems need carefully to be evaluated.
This is a very interesting phenomenon: but the bubble will end in tears for a lot of people.
Now I will return to the work that is preoccupying me at present. I will continue to blog occasionally so that i have a log of the dates on which I post comments.
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