why bitcoin will succed !!

t’s hard to know which there are more of these days: the number of Bitcoins worldwide or the number of pundits who believe the newly popular crypto-currency is a fad, doomed to failure, or both.

But rather than pile on, I have come up with several reasons why Bitcoin can succeed.

Bitcoin screw-ups have resulted in fewer Bitcoins but never more of them
A natural consequence of a rise in value of something is the creation (or mere appearance) of more of that thing. Whether tulip bulbs, Impressionist paintings or dot-com stocks, a rise in the value of originals begets an increase in the supply of copies. These copies can be legitimate (e.g., follow-on stock offerings), or counterfeits (ultra-rare Ferraris cobbled together from parts of less-rare Ferraris).But in the four years of Bitcoin’s existence, any increase in the number of available Bitcoins has been through the legitimate Bitcoin “mining” process, governed by the clever software that brought it into existence, and which permits mining of the crypto-currency.

As noted by Tech Crunch, “there have been attacks on independently-run Bitcoin wallets and exchanges, [but] the core 31,000 lines of Bitcoin [software] haven’t been compromised despite being available to the world’s best hackers and cryptographers for the last four years.”

So, despite huge profit motives (both legal and otherwise) the supply of Bitcoins is stable, growing in accordance with the algorithms that define the currency, and outside the control or influence of third parties.

The opportunity cost of Bitcoin is negative
Typically, the adoption of a new technology like the horseless carriage or the personal computer required investment not only in something un-proven, but also in a depreciating asset. Think about how fraught it was in the early 1980s to buy a personal computer, which was expensive, came with essentially no software beyond its operating system, and was only useful to someone after reading carefully through a manual, and learning to program the thing.