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It's not quite so simple. Government backed money has some intrinsic value because if you don't have any the government will put you in jail for not paying taxe
by colinmhayes 5y ago
It's not quite so simple. Government backed money has some intrinsic value because if you don't have any the government will put you in jail for not paying taxes. The IRS does not accept crypto.
You can also get into "everything is make believe" easily enough, so this isn't very helpful either way.
- yrral 5y agoThe IRS does not accept cash either. And the process of converting your cash into bits that the IRS accepts ends up being the same process as converting your crypto into bits that the IRS accepts.
- colinmhayes 5y agoI don't even think you actually believe this. It's conceivable that bitcoins value could someday be worthless. Dollars will never be worthless until the US government collapses because you will always nened them to stay out of jail. If you think of Dollars as "get out of US jail" cards it's pretty easy to see how they have intrinsic value.
- akaij 5y agoYou also can't pay taxes with US$ in most countries outside the US. They only accept local currency. The IRS not accepting cryptocurrencies is irrelevant; you can take a look at any trading platform and find that there are people, right now, willing to part with more than 49000 of their "government backed US dollars with their intrinsic value and ability to pay taxes" to acquire a single bitcoin.