Present Valuation of Bitcoin Finance Alternatives #1

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Difference Between Transfer For Value and Transfer for Bitcoin

A Bitcoin transfer for value occurs when a purchaser and seller exchange bitcoin for something else of value, with the market value of the bitcoin more or less equal to the value of that for which it is exchanged.

A Bitcoin transfer for bitcoin occurs when a purchaser and seller exchange bitcoin for something of much greater value because the bitcoin recipient wants bitcoin.  The recipient, viewing obtaining Bitcoin, as similar to obtaining stocks, anticipates that the value of the Bitcoin, relative to the value of the purchasers home currency, will increase, resulting in increased purchasing power.  The recipient acquires bitcoin to obtain higher profit potential, while accepting the risk that if bitcoin market value does not go up, the bitcoin recipient will lose money.



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