Bitcoin is worth more than 0 because:
- There is a fixed supply currently of 11M, and it cannot grow past 21M coins.
- It has provable scarcity. Cannot be counterfeit.
- There is a verifiable public ledger of all transactions and coin creation in history.
- It costs electricity and equipment in order to create new coins, and so that effort is only made if there is belief that the value is greater than the cost.
- Its relatively difficult to make new ones today.
- It is the most convenient form of value transmission, since it can be sent instantly from home or phone to anywhere, at low or no fee.
- At over $1B in market capitalization, and $40M+ daily exchange volume, and $70M+ in daily transactions, there is sufficient value to let any one person "buy" most things (that cost under $1M or $2M).
- If there is enough total value to support one person's transactions, then the value needs to go up as more people use it for transactions. This is the critical mass point, and arguably occurs well below $1B in market capitalizaion.
- As more people find bitcoin useful for transactions, more people find it useful as a store of value, anticipating that more other people will find it useful either for transactions or as a store of value.
- Even if other crypto currencies exist, valuing them in bitcoin, as the leading cryptocurrency, makes the most sense, and this is another source of transaction and store of value for bitcoin.
The noteworthy insight on individual greed is that it can be maximized through shared social belief in ideas. Shared faith in Santa Claus, bitcoin, the dollar, and the banking system leads to a healthier and happier society than if that faith is broken. Similarly, if people understand that taxing their income benefits them individually by allowing them to work and earn more income, and so is in their interest. Similarly, we can understand that a fairer, less corrupt, society is in our interest, even if we are not personally at risk of being abused, because a fairer society motivates other social members into contributing to society, and thus assisting you in some way (you might consume their work, and benefit from their share of tax burdens).
New crypto currency design
I have a design for a new crypto currency which I will share with anyone that gives me $20k. The $20k would be a deposit for future value and promises high returns (the $20k is similar to a loan and has some similarity to this concept). The design does reward greed through early adoption and investing. It keeps a predictable limited money supply, but does away with mining lotteries. Most importantly it provides personal account security, while retaining the option of anonymity.
It incorporates almost all innovations I have previously developed on this site. For hints (consider it a scavenger hunt) on the implementation, look at this and get through to the grocery store example on this article
As another hint, think crypto society instead of crypto currency.