3 ms·

Assuming everything you said is true you still haven’t answered my question. If Bitcoin has no intrinsic value, how is that different than fiat? What gives th

by lowkey 5y ago

Assuming everything you said is true you still haven’t answered my question. If Bitcoin has no intrinsic value, how is that different than fiat? What gives the USD or British pound intrinsic value?

NovemberWhiskey 5y ago
The value of the USD is that it's a currency that can be used to buy goods and services. The same is largely not the case for BTC. To the extent that any goods and services are for sale with prices in BTC, they are (in my experience) priced consistently with trading out of BTC into some currency (say USD) and then purchasing the product with proceeds of the sale.
- herbst 5y ago
  To be fair there are a lot more places in a 1000 miles radius around me taking bitcoin or crypto than there are taking dollars as payment. The relevance of USD, and any currency, is a regional value. And bitcoin is actually widely accepted here in Switzerland
Twixes 5y ago
The USD or practically all fiat currencies are an abstraction over barter. Obviously they are only worth as much as we all collectively believe, but that belief is anchored by what the currency primarily is used for, which normally is obtaining goods and services. That's not intrinsic but relatively stable, and central banks try to steer things in a stable way. Meanwhile BTC currently only serves as an abstraction over fiat currencies. It's practically only exchanged from and to fiat currencies, and that's not stable, as popularity is then the only mechanism dictating the price. BTC is much more like gold this way than the dollar.
- lowkey 5y ago
  > Obviously they are only worth as much as we all collectively believe I agree, which means both fiat currencies and Bitcoin have no intrinsic value, only what we collectively believe. > BTC is more like gold this way than the dollar agree

3 ms·

Assuming everything you said is true you still haven’t answered my question. If Bitcoin has no intrinsic value, how is that different than fiat? What gives th

by lowkey 5y ago

Assuming everything you said is true you still haven’t answered my question. If Bitcoin has no intrinsic value, how is that different than fiat? What gives the USD or British pound intrinsic value?

NovemberWhiskey 5y ago
The value of the USD is that it's a currency that can be used to buy goods and services. The same is largely not the case for BTC. To the extent that any goods and services are for sale with prices in BTC, they are (in my experience) priced consistently with trading out of BTC into some currency (say USD) and then purchasing the product with proceeds of the sale.
- herbst 5y ago
  To be fair there are a lot more places in a 1000 miles radius around me taking bitcoin or crypto than there are taking dollars as payment. The relevance of USD, and any currency, is a regional value. And bitcoin is actually widely accepted here in Switzerland
Twixes 5y ago
The USD or practically all fiat currencies are an abstraction over barter. Obviously they are only worth as much as we all collectively believe, but that belief is anchored by what the currency primarily is used for, which normally is obtaining goods and services. That's not intrinsic but relatively stable, and central banks try to steer things in a stable way. Meanwhile BTC currently only serves as an abstraction over fiat currencies. It's practically only exchanged from and to fiat currencies, and that's not stable, as popularity is then the only mechanism dictating the price. BTC is much more like gold this way than the dollar.
- lowkey 5y ago
  > Obviously they are only worth as much as we all collectively believe I agree, which means both fiat currencies and Bitcoin have no intrinsic value, only what we collectively believe. > BTC is more like gold this way than the dollar agree