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Bitcoin value is what it currently is because it's traded against fiat, so holders can cash it out for currency they can actually use to buy things the real wor
by ChuckNorris89 5y ago
Bitcoin value is what it currently is because it's traded against fiat, so holders can cash it out for currency they can actually use to buy things the real world.
If the world's biggest economies were to hypothetically legally ban crypto holding and exchanging for fiat, then bitcoin's value in relationships to fiat would tank overnight as it would become useless binary data nobody would want anymore.
- walkhour 5y agoEvery asset would lose most of its value if it couldn't be exchanged for fiat. From gold to Google stocks. The intrinsic value of gold is negligible in comparison to its actual value. It would just be another rock.
- ChuckNorris89 5y agoExcept gold is not just a means of financial speculation, but it's also a precious metal highly sought after for it's uses in the electronics, medical, semiconductor, aerospace and other industries due to its very good electrical and thermal properties. Bitcoin on the other hand, if you were to remove its capability for financial speculation, then it would serve no other purpose and would just be some useless bits of data, just like NFTs.
- walkhour 5y agoNote I acknowledge this in my previous comment by saying gold has intrinsic value. My point is that gold would still lose most of its value, since there's a highly speculative component to it.
- ChuckNorris89 5y agoAgreed.