Adam Smith Institute Fellow, Preston Byrne, was quoted in Business Insider talking about the value of bitcoin.

Read the article here.

"According to Preston Byrne, a securitization attorney in London the answer to this is “that the value of bitcoin used in a colored coin transaction does not need to bear any relationship to the value of the associated asset – the network is being used to transmit information, and that information represents rights, and is the rights – not the token – which are valuable.” If the price of bitcoin does not adequately incentivize the miners, then there will be a difference between value of a bitcoin and the network and then some entity will have to step in to compensate for that difference. Whether collective action is sufficient to provide this compensation is currently unknown but there are coordination problems inherent in this model that would make this difficult."