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What is a dollar based on? The need for the citizens of the most powerful nation on earth to pay their taxes in it; a legal and regulatory framework to support

What is a dollar based on? The need for the citizens of the most powerful nation on earth to pay their taxes in it; a legal and regulatory framework to support it; and the military and diplomatic might of the US to support it.

celticninja 8y ago
So it's based on a concept, a loosely defined one at that. Cryptocurrency is based on a strictly defined mathematical concept. It isn't a huge leap between the two.
- majewsky 8y ago
  All that math is not going to help you when your government puts you in jail for not paying your taxes.
  - timbit42 8y ago
    Who isn't paying their taxes? Bitcoin can be sold for fiat and taxes can be paid.
    - majewsky 8y ago
      Exactly. If I have to pay taxes in dollars, why should I accept anything but dollars in the first place?
Proven 8y ago
Or simply: it's based on coercion. It has zero value, but the US government forces you to take it. "Do you mind to sell me that barrel of oil for this piece of paper? No? Oh that's great!" Bitcoin has become useless thanks to its developers and the same parasitic "industry" around it. Yes it could very well go to zero. There are and will be other cryptocurrencies, though.