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" It’s not backed by “the full faith and credit of the United States of America.” It’s not backed by, well, anything. In that sense of innate value cryptocurren
by RosanaAnaDana 9y ago
" It’s not backed by “the full faith and credit of the United States of America.” It’s not backed by, well, anything. In that sense of innate value cryptocurrencies are worthless. "
I take issue with this statement in this article. I would argue that in the same way that 'dollars' are considered to be irreproducible, and this is central to the 'full faith and credit' part of why people consider them valuable, the irreproducibility of crypto is their innate value.
- lmkg 9y agoI disagree that irreproducability is the key. The central part of "full faith and credit" is the fact that the US accepts US dollars as payment. Which is important, because it can place debt obligations on people. In short, the US guarantees that there will always be a buyer for dollars. Bitcoin does not structurally guarantee that there will always be someone else who wants to buy Bitcoin, you have to take that on faith.
- bithive123 9y agoDollars are not valuable because of artificial scarcity, they are the sovereign currency of one of the best economies in the world in which to invest your capital.
- tdb7893 9y agoI understand how reproducibility is necessary to hold value but I don't understand how irreproducibility innately creates value. If I randomly forked bitcoin a bunch the coins would be irreproducible but the value would still be negligible