Regardless, bitcoin and other crytos are not sound money because it isn't back by anything. When people invest in it it just makes things worse as more and more accept it as real.
That is true right now, because it isn't our money. It is the Federal Reserve's worthless paper. What will it be when gold destroys the Fed? Why will gold destroy the Fed? Why do you think even Trump was spending their worthless paper like a drunken sailor on shore leave?
Because our US Dollar will be gold backed again, and the Federal Reserve Note and the debt created with it will be history.
At best bitcokn replaces banks. It should not replace physical money and if it doesn't manage metal backed money its useless as fuck and you have no control of it.
All currency is really backed by nothing. People like to pretend gold is different but it really has limited intrinsic value. It can be used as a conductor or for jewelry but how many people are electricians or jewelry crafters that would actually use it that way? It has a limited supply but so does Bitcoin. All currency is really just whatever value people decide it’s worth.
It’s value is perceived as the resources it takes in computing power to solve the algorithms which produce the block chain. Each block provides a level of security that you don’t have with other digital fiat assets. It’s an agreed upon value because of what it takes to produce. Yes there are ones that are basically produced from nothing and those are the most volatile but they have collective value in the holders eyes just because they like the concept like DOGE coin. There are several meme tokens that users back and have value to THEM just because the concept is liked. That’s the same as what’s happening with meme stocks like GameStop, AMC, Nokia, Koss, etc. Those stocks haven’t risen because of actual value of the company or anything their doing, but only because there are stockholders that like them and want to drive up their perceived value.
I’m no expert on any of this, but that’s my opinion on all of it.
Well they got lucky about 500 times.
Regardless, bitcoin and other crytos are not sound money because it isn't back by anything. When people invest in it it just makes things worse as more and more accept it as real.
Whereas fiat money is based on? Once we left the gold standard, our currency is based on nothing but perception.
That is true right now, because it isn't our money. It is the Federal Reserve's worthless paper. What will it be when gold destroys the Fed? Why will gold destroy the Fed? Why do you think even Trump was spending their worthless paper like a drunken sailor on shore leave?
Because our US Dollar will be gold backed again, and the Federal Reserve Note and the debt created with it will be history.
At best bitcokn replaces banks. It should not replace physical money and if it doesn't manage metal backed money its useless as fuck and you have no control of it.
Agree
All currency is really backed by nothing. People like to pretend gold is different but it really has limited intrinsic value. It can be used as a conductor or for jewelry but how many people are electricians or jewelry crafters that would actually use it that way? It has a limited supply but so does Bitcoin. All currency is really just whatever value people decide it’s worth.
Study more on metal backed money. It's the only bona-fide money in existence.
So what’s the reason?
It’s value is perceived as the resources it takes in computing power to solve the algorithms which produce the block chain. Each block provides a level of security that you don’t have with other digital fiat assets. It’s an agreed upon value because of what it takes to produce. Yes there are ones that are basically produced from nothing and those are the most volatile but they have collective value in the holders eyes just because they like the concept like DOGE coin. There are several meme tokens that users back and have value to THEM just because the concept is liked. That’s the same as what’s happening with meme stocks like GameStop, AMC, Nokia, Koss, etc. Those stocks haven’t risen because of actual value of the company or anything their doing, but only because there are stockholders that like them and want to drive up their perceived value. I’m no expert on any of this, but that’s my opinion on all of it.