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Fiat currency is an agreement of settlement using an inflationary mechanism created at will with no work required to provide value. Bitcoins are an asset creat
by commonoddity 6y ago
Fiat currency is an agreement of settlement using an inflationary mechanism created at will with no work required to provide value.
Bitcoins are an asset created in response to work performed, scaling proportionately with the work required giving it value.
It really is that simple and makes perfect sense.
- bawolff 6y agoI disagree that bitcoins are made "in response" to work performed. The value of a bitcoin doesn't come from the work performed. Otherwise recently mined bitcoins would be more valuable than early mined bitcoins, due to different hash difficulty level. Anyways, currency is not value. Currency represents value. It is symbol. I feel like confusing the symbol with what it represents is the source of much of the misunderstandings of how money works.
- wolfretcrap 6y agoInitially minted coins were technically more valuable for the bitcoin network. It's depends on from what perspective you judge this value.
- bawolff 6y agoThat's taking the term "value" severely out of context.