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It has more in common structurally with metal-backed currencies in that there are strict limits imposed on how much currency can be in circulation at any given
by kaonashi 13y ago
It has more in common structurally with metal-backed currencies in that there are strict limits imposed on how much currency can be in circulation at any given time.
- jljljl 13y agoThis is one structural similarity, although metal backed currencies were often restamped or debased in order to increase/decrease the amount of money flowing through the economy. The main structural difference between bitcoin and metal backed currencies is bitcoin's lack of intrinsic value. If I have gold coins, and inflation begins to set in or if the currency suddenly becomes worthless, I can still melt down my coins and sell the gold even if the face value of the coins is zero. If Bitcoin's use as a currency is diminished or restricted, the wallet sitting on my computer has no intrinsic value to support it.