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Money is real. If I don't pay taxes with it, men with guns will come and put me in jail. If my landlord doesn't pay their taxes with it, men with guns will come
by TheCoelacanth 9y ago
Money is real. If I don't pay taxes with it, men with guns will come and put me in jail. If my landlord doesn't pay their taxes with it, men with guns will come and take away their building. Bitcoin doesn't have any men with guns to set a baseline demand.
- shawnz 9y ago> Bitcoin doesn't have any men with guns to set a baseline demand. I think that depends on where you're spending it.
- nickthemagicman 9y agoTell that to Venezuela whose money is absolutely worthless and they have dudes with guns...
- TheCoelacanth 9y agoThat's because the people that the men with guns can use them on have very few real assets (both physical assets and human capital), so they can't give up very much in real value in exchange for the currency that the men with guns are demand. That leads to the currency not being very valuable. In places where the people do have significant assets that they can give up in exchange for the currency, the currency has a lot of value.