I am tired of hearing people saying, blockchain is a great technology and will be ubiquitous but bitcoin is a bubble and will fail. I think that opinion is plain stupid and it shows their lack of understanding of bitcoin or cryptocurrencies as a concept. I'll explain.
Without going into details, Bitcoin works based on the proof of work system, which in laymen term means, a huge amount of work should go into creating the block. The huge amount of work in creating a block is done by a network of computers around the world. These newly created blocks when chained together with the previous block forms the blockchain.
The block in the blockchain is more secure if the work that went into creating that block is higher. So, do these network of computers around the world work for nothing consuming all these electricity? No. They work for a reward that is paid out when a block is created or for the fees paid as part of the transactions that need to be included in the block. That reward happens to be bitcoin. This process of creating a block and receiving the block rewards is called mining. Without this block reward or transaction fees why would anyone join a network of computers and spend their own electricity and do all the work in securing a blockchain?
The below image shows how bitcoin system goes full circle
Even if you argue that some government or big institution can put in that kind of work to secure the blockchain, then you miss the decentralization aspect of bitcoin. If a central organization wants to put in all the work to maintain a blockchain, It is stupid in its own right, because there are much more efficient systems to maintain a centralized system.
So, A decentralized system based on the blockchain technology cannot exist without some kind of built in token to reward those who secure of the blockchain. That token can be bitcoin or some other coin of the future. But saying that a blockchain can exist in isolation without the need for the reward securing it is either a fantasy or denial.
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