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"... thus only holds value because ... our collective agreement that it does hold value." What exactly do you think the value of a given collection of bits is?
by Frondo 11y ago
"... thus only holds value because ... our collective agreement that it does hold value."
What exactly do you think the value of a given collection of bits is?
- x3n0ph3n3 11y agoAs much as people agree, just like every other currency.
- startupfounder 11y agoThe value of a given collection of bits is whatever you and I agree the value of those collection of bits is. It's a one to one relationship. The value of USD is not what you and I agree the value is, it's what the government tells us what the value should be. This is not a one to one relationship. One is based on a transparent mathematical equation between you and I and the other is based on 7 non-elected and appointed board of governors between you and I. That's the difference.
- sanswork 11y agoHow does the US government dictate how much value you assign to the USD? You could trade me a piece of gum for $1 or a car for $1. In both cases you've agreed with me on the value of $1 and in both cases that value is different. You have no more control over the market price of Bitcoin than you do the forex pricing for USD.