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It's largely a collective delusion, it has value because people believe it has value. Fiat currencies and gold are arguably in that same category.
by olalonde 6y ago
It's largely a collective delusion, it has value because people believe it has value. Fiat currencies and gold are arguably in that same category.
- ur-whale 6y ago>Fiat currencies and gold are arguably in that same category. Anything trade-able is in the same category. Things only have value because someone, somewhere is ready to buy it. It's called supply and demand.
- olalonde 6y agoTo clarify, what I meant was specifically "exchange value". The sole purpose of buying Bitcoin or USD is to exchange it at some later point in time. There are practically no other uses. As opposed to the many trade-able things which can be consumed, used, exploited, etc. Of course it's not black and white. Gold has some intrinsic value but its "intrinsic value demand" (e.g. industrial uses) only accounts for a tiny share of total demand.