Bitcoin has been on a roller coaster ride the past two months. A lot of people seem to be trying to get in at the “bottom” of the most recent “crash” The fundamentals are as untenable as they were a couple months back.

Don’t try to catch a falling knife. A couple of months back, I wrote an article about Bitcoin (OTCQX:GBTC, COIN) talking about the idea of purchasing power and why Bitcoins, the tokens in a sample reference implementation, are worthless precisely because they do not have a large institution, central bank or government backing it.

I also mentioned in the article that it is important to distinguish between Bitcoin and blockchain, the underlying technology. I have gotten some comments on this topic from readers both on this platform and elsewhere and so let me start by clarifying what I mean when I say blockchain has value.

I will try to keep this discussion general without getting into too many technical details. So forget about hash functions, digital signatures and merkle trees for a minute and think about it from a high level perspective.

Frankly, if you have studied the technical details of Bitcoin or any other cryptocurrency, you should know exactly what you are buying into and this article is not targeted at you. So lets start with what I mean when I say blockchain has value. Read more from seekingalpha.com…

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