Bloomberg Crypto

Bonus: The Crypto Story by Matt Levine - Part 3

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Nov 13, 2022
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INSIGHT

Bitcoin's Social Value

  • Satoshi Nakamoto invented Bitcoin, a technology for sending scarce numbers.
  • Its value comes from social acceptance, not inherent technology.
ANECDOTE

Dogecoin's Unexpected Success

  • Dogecoin, a parody cryptocurrency based on the Doge meme, is now worth billions.
  • This demonstrates how arbitrary tokens can gain value through social acceptance.
INSIGHT

Copying Bitcoin's Code

  • Copying Bitcoin's code doesn't replicate its value due to social coordination and network effects.
  • Social acceptance and a large miner pool contribute to Bitcoin's legitimacy and security.
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