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You can make the same argument about IOUs, or contracts, or your bank account balance, whatever currency it's denominated in. All of these things are symbolic,
by vannevar 9y ago
You can make the same argument about IOUs, or contracts, or your bank account balance, whatever currency it's denominated in. All of these things are symbolic, yet there is value in symbols if they mean something to someone, regardless of whether a government agency is involved. Bitcoin's problem isn't that it has no intrinsic value, it's that for the most part it's a vehicle for pure speculation. It's a terrible currency as a result.
- kensai 9y agoBitcoins apparently mean something to someone. Including the exchanges that exchange them to fiat. So stop using this circular argument.
- vannevar 9y agoDid you mean this as a response to my comment or someone else's? I was agreeing that Bitcoins mean something to someone, so I don't get the 'circular argument' reference.
- kensai 9y agoI misread your comment indeed. And I agree that it has not the best currency characteristics. But indeed, I concur with you, if something means something to someone (even if it just were fancy pebbles), then it can be put to a price higher than its real price. A symbolic price might actually be a powerful one.
- kensai 9y agoNow here is another "currency" with intrinsic value! :D https://www.facebook.com/greatbigstory/videos/1723932011242558/ https://www.facebook.com/greatbigstory/videos/17239320112425...