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Real-world currencies are valued on the GDP and credit-worthiness of the nations that issue the currency. Right, but ultimately thats just a confidence judgeme
by codeulike 14y ago
Real-world currencies are valued on the GDP and credit-worthiness of the nations that issue the currency.
Right, but ultimately thats just a confidence judgement. The 'credit worthniess of a nation' is just a consensus judgement by the markets. Hence Money is based on confidence and consensus. With most currencies that fact is hidden away, but with Bitcoin its just made more explicit.
- Locke1689 14y agoUSD is a confidence judgement of many things which are not the literal note. Bitcoin is just the confidence in Bitcoin. Of which I have none. I'm pretty sure the US govt is here to stay, though.
- marssaxman 14y agoBitcoin is just a distributed ledger which keeps track of which coins are associated with which wallets, where "coin" and "wallet" are nothing more than unique ID numbers. Do you lack confidence that this system actually works, or when you say "confidence in Bitcoin" are you actually referring to some other system built around it?
- codeulike 14y agoright, the USD has some institutions and a very large community (i.e. a nation) behind it, and they're huge so its not really an easy comparison with Bitcoin. But Bitcoin is not 'just bitcoin', it also has institutions and a community, they're just much smaller at the moment.