> I accept $20 bills because I believe other people will accept $20 bills. The paper itself is worthless. That is a common misconception. Government currency h

> I accept $20 bills because I believe other people will accept $20 bills. The paper itself is worthless. That is a common misconception. Government currency has intrinsic value because you are required to pay your taxes in it. If you live in the US, whatever currency you conduct your business in, be it Bitcoin or gold bullion, the USG wants to be paid in dollars. That creates an intrinsic demand for dollars. That intrinsic demand is what ensures that everyone accepts it as a common form of payment. Because everyone has this same common requirement to pay taxes in USD. People then choose to conduct all business in it simply because it's convenient to do so. The analog for Bitcoin is a little trickier, but I think an argument you might make is that it costs Bitcoin to move Bitcoin. And therefore there is intrinsic demand for Bitcoin, because the value-transfer capabilities it provides are inherently useful.