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The 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
by startupfounder 11y ago
The 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.