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Dollars are also tied to nothing. A towel with the logo of a sports team also has zero intrinsic value. Same with a shiny lump of useless metal. That's because
by ars 2y ago
Dollars are also tied to nothing. A towel with the logo of a sports team also has zero intrinsic value. Same with a shiny lump of useless metal.
That's because being tied to something, or having intrinsic value is not how things gain value.
Things, crypto, dollars, gold, and towels, have value because people WANT them. That's it.
You even touched on it: "some sort of service that people want, and therefore have value" - crypto provides a service people want, therefore by your own words it has value.
- astrange 2y agoDollars have fundamental demand because, among other things, you have to pay US sales taxes in them. > Things, crypto, dollars, gold, and towels, have value because people WANT them. That's it. People would want a lot of things if those things were free, question is what the demand curve is.
- evilfred 2y agoUS dollars are backed by the US economy and military
- roenxi 2y agoIf US dollars can be backed by a military, crypto is backed by mining networks. The mining network is a lot more productive than the US military which has vastly negative economic output. At least ASICs doesn't wander around wrecking countries in a semi-random fashion. The mining network even operates at a profit, which is much better than the US government by a huge margin. Someone thinks they are worth the money.