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They're less vulnerable to market fluctuations because they're backed by nothing besides speculative demand and the online drug trade.
by TACIXAT 9y ago
They're less vulnerable to market fluctuations because they're backed by nothing besides speculative demand and the online drug trade.
- rglover 9y agoYou could say the say the same thing about the U.S. Dollar but just add a military to the list.
- TACIXAT 9y agoActually, taxation plays a large role in giving a currency value. The US government only accepts payment in US dollars. They require everyone to pay taxes in US dollars, which means we all seek US dollars. Add onto that the fact that the government has and uses tools to control inflation and deflation means we have a relatively stable currency. We know that the US government's long term intention is its continuity. (We do not know the intention of the Chinese mining pools that control large portions of Bitcoin, though, we can assume profit and not stability.) Tie all that into one of the strongest economies in the world and you have yourself a reserve currency.