Bitcoin's price is specualtion just like any other fiat that doesn't have anything to back it up with. The difference with bitcoin vs fiat is that the value is in the freedom to send it to whoever, whereas fiat needs banks or transportation to be moved :) And that is why cryptos will take over completely in the future.
We're in a healthy correction and I look forward to the next impulse. Here's my update on bitcoin:
IMPORTANT COIN UPDATES - BTC, XVG, TRON https://steemit.com/bitcoin/@benkalashnikov/important-coin-updates-btc-xvg-tron
Fiat is backed up by the fact that a territorial monopoly of violence demands taxes to be paid in it. Also, a monopoly of violence can decree that certain type of economic units have accounting obligation in the fiat backed up by said monopoly of violence. And a monopoly of violence can and often will refuse to help enforce the repayment of a debt if the repayment is attempted in the backed up fiat. The value of fiat follows from those three facts.
A monopoly of violence is capable of single-handedly giving anything value by demanding the same thing, say pebbles of a certain color, in return for not beating you to pulp. This is the fundamental connection between money and violence. Typically monopolies of violence have demanded things that have been somewhat valued in the first place in return for remaining non-violent for the time being thus boosting their value significantly. Such things include gold or salt.
Very true, i agree with your logic here!
Register and earn $20 bonus and refer your friends every referred member will earn $20, You also get $20 on new refer, it is upto 7 steps down.
http://pm7.pm/ico/f6bc87aa