Bitcoin has, for the first time, created digital scarcity without having a trusted central intermediary backing it.<\/p>\n
This is according to FirstRand\u2019s Blockchain Lead Farzam Ehsani, who was discussing Bitcoin on BusinessDay TV<\/strong><\/a>.<\/p>\n Ehsani said that with the Internet, you can send someone a picture or other information, and retain a copy for yourself.<\/p>\n This means it has been challenging to create a valuable digital token, because a user can simply make infinite copies – which devalue the token due to a lack of scarcity.<\/p>\n \u201cFor the first time with Bitcoin, we have only 21 million Bitcoins which will ever be produced, which does not rely on any trusted intermediary,\u201d said Ehsani.<\/p>\n This scarcity and the growing demand for Bitcoin has seen the cryptocurrency\u2019s value increase to over $6,000 in recent weeks.<\/p>\n Ehsani said that for something to be valuable, it must be scarce and it needs to have utility.<\/p>\n \u201cThe reason why air is not valuable, although it is very important to us, is because it is not perceived to be scarce,\u201d he said.<\/p>\n Bitcoin has scarcity, because of the 21 million Bitcoin limitation which is built into the system.<\/p>\n It also has utility, because it makes it possible to send anyone in the world Bitcoin very fast, and at a fraction of the cost of using traditional banking platforms.<\/p>\n While its enormous growth is attracting interest from investors, Ehsani advises a healthy dose of scepticism before putting money into Bitcoin.<\/p>\n However, he encourages people to think about what impact Bitcoin can have on the world.<\/p>\n \u201cFor the first time in a very long time, the very nature of what money is, is changing,\u201d said Ehsani.<\/p>\n Simon Brown from Just One Lap sees Bitcoin as an \u201calternative investment\u201d, and likened it to gold and exotic art.<\/p>\n Brown highlighted that Bitcoin is not a store of wealth, and follows market movements related to world events fairly closely.<\/p>\n FirstRand\u2019s Blockchain Lead Farzam Ehsani explains what makes Bitcoin special.<\/p>\n","protected":false},"author":23,"featured_media":209920,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[44696],"tags":[187,44668,35,27671],"class_list":["post-234270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitcoin","tag-farzam-ehsani","tag-headline","tag-simon-brown"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/234270"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=234270"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/234270\/revisions"}],"predecessor-version":[{"id":234406,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/234270\/revisions\/234406"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/209920"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=234270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=234270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=234270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why Bitcoin is valuable<\/h3>\n
Now read:\u00a0How much you should have invested in Bitcoin<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"