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The USD is no longer backed by gold and you could say it also has no intrinsic value.

by tensor 9y ago

blibble 9y ago
it will always have value as long as it in the only thing the IRS accepts for taxes due
- fwdpropaganda 9y ago
  It's the only thing the IRS accepts for taxes, it's the only thing that Saudi Arabia accepts for oil, etc. There's many good reasons for the dollar to have non-zero intrinsic value.
  - danaris 9y ago
    That's still not an intrinsic value: it's a consensus value. Intrinsic value is the value it has even if it is not thought of as a currency or unit of trade.
    - fwdpropaganda 9y ago
      > Intrinsic value is the value it has even if it is not thought of as a currency or unit of trade. That's like, your definition dude. https://www.investopedia.com/terms/i/intrinsicvalue.asp https://www.investopedia.com/terms/i/intrinsicvalue.asp > The intrinsic value is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value.
      - wuliwong 9y ago
        I don't think I agree that this is what people mean when they say "bitcoin has no intrinsic value but gold does." I think that it is a laymen's statement and they are really referring to value or utility outside of being currency. They are not meaning to reference fundamental analysis in finance.
        fwdpropaganda 9y ago
        That's my point precisely. Maybe you should be telling that to the other guy :-P
- baddox 9y ago
  And Bitcoin will always have value as long as people are willing and able to trade it. Your point, which is valid, is that the long-term future of the United States and the IRS as a wealthy nation is almost certainly more safe than the long-term future of Bitcoin, but there is no inherent difference between the two, merely a difference of scale.
buttcoinslol 9y ago
It's backed by an army and a government, along with the trust of the entire world. These things ensure value a lot better than being back by gold does.

The USD is no longer backed by gold and you could say it also has no intrinsic value.

by tensor 9y ago

The USD is no longer backed by gold and you could say it also has no intrinsic value.

blibble 9y ago

it will always have value as long as it in the only thing the IRS accepts for taxes due

fwdpropaganda 9y ago
It's the only thing the IRS accepts for taxes, it's the only thing that Saudi Arabia accepts for oil, etc. There's many good reasons for the dollar to have non-zero intrinsic value.
- danaris 9y ago
  That's still not an intrinsic value: it's a consensus value. Intrinsic value is the value it has even if it is not thought of as a currency or unit of trade.
  - fwdpropaganda 9y ago
    > Intrinsic value is the value it has even if it is not thought of as a currency or unit of trade. That's like, your definition dude. https://www.investopedia.com/terms/i/intrinsicvalue.asp https://www.investopedia.com/terms/i/intrinsicvalue.asp > The intrinsic value is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value.
    - wuliwong 9y ago
      I don't think I agree that this is what people mean when they say "bitcoin has no intrinsic value but gold does." I think that it is a laymen's statement and they are really referring to value or utility outside of being currency. They are not meaning to reference fundamental analysis in finance.
      - fwdpropaganda 9y ago
        That's my point precisely. Maybe you should be telling that to the other guy :-P
baddox 9y ago
And Bitcoin will always have value as long as people are willing and able to trade it. Your point, which is valid, is that the long-term future of the United States and the IRS as a wealthy nation is almost certainly more safe than the long-term future of Bitcoin, but there is no inherent difference between the two, merely a difference of scale.

buttcoinslol 9y ago

It's backed by an army and a government, along with the trust of the entire world. These things ensure value a lot better than being back by gold does.