People have such a hard time understanding that the only thing that gives something value, is peoples belief in it. Crypto certainly has a lot of believers and it reflects in the price.
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People have such a hard time understanding that the only thing that gives something value, is peoples belief in it. Crypto certainly has a lot of believers and it reflects in the price.
Fiat currency and cryptocurrency have no inherent value. A gold-back currency does because there's a physical good it can be exchanged for. While the value of gold can change, it still has inherent value in that it's a tangible asset. The difference between cryptocurrency and regular government-back fiat currency is that governments don't guarantee cryptocurrency.
This lack of guarantee means that crypto is extremely unstable, but it doesn't have to be. A corporate backed crypto could be almost as stable as a fiat currency, though it's next to impossible to get as stable as the US dollar.
The only reason gold has value is because people believe it has value. If nobody believed gold had value it would be a worthless rock. Things don't need to be physical to have value. The only thing that gives value to anything is people's belief.
You're missing the point. Since gold is physical, regardless of how much people value it, it still has inherent value in that it's real. There's no equivalent in fiat or crypto.
Lol 😂 things don't need to be physical to be real or have value. Your missing the point.
A make believe object that doesn’t really exist has no inherent value. It can have value but not inherent to itself.
Think a bit harder about what value is and why physical items have inherent value opposed to fictional ones which have no inherent value.
Things don't need to be physical, to exist. Open your mind! I know it hurts to be a gold bug and miss out on a once in a life opportunity and revolution. It's sad to see the dinosaur's go extinct because they couldn't evolve.
If there’s no physical form, it’s not tangible. I know you’re excited about crypto but that doesn’t mean it’s backed by something tangible. You could replace the gold standard with the brass standard or the brick standard and it would have the same fundamentals in that it’s backed by something tangible.
Crypto is backed by nothing. Fiat is backed by promises. You can’t make a legitimate argument if you think crypto has inherent value.
Beat me to it. Wanted to comment about the same. Depends on what our choice and beliefs are on things being valuable. In the end a bill is just cloth and paper with ink on it. A diamond is just a compressed mineral and c02. In actual survival value, food and water are most valuable for our species and yet we value other 'stuff' more. Hell, even the air we breathe is more valuable than anything in a logical belief.
The transferred value is exactly as you say, the belief by both parties that value has been exchanged, willing parties both ends. This is easy when face to face. You barter and settle on a value and value can be exchanged. When you are distant, then you have to rely on a conduit to transfer that value for you and the traditional banking system has largely been that for many years. However, the cost and hassle for people has become a problem and disruptor banks are stepping in, though even they are not the perfect solution. The benefit of a distributed network removes all these slices that are taken from our own value and it is for that reason that people will support the idea. Money/ value counts between two people exchanging value and no matter what socio economic system you believe in, those exchanges will exist. About time that disruption happened by unlocking open minded thinking. D