[Dilbert San Diego]

I never understood about Bitcoin or other crypto currency.

It seems to me that Bitcoin only has value because people decided to believe that it has value.

Everybody participating decided that Bitcoin miners would be rewarded with Bitcoin for their efforts. What productive work are they doing besides solving some sort of equations on a computer? How does this activity Warrant them getting more Bitcoin, except that everyone decided that this is how it should be? But the vast majority of the world does not use Bitcoin so why should it have value?

[Texan Tory]

I don’t know much about crypto currency either, but it is my guess that you have hit on the main reason it has value...people decide to believe that it has value. At the root of it though, it wouldn’t surprise me too much if these crypto currencies are really some kind of Bernie Madoff house of cards propped up by an ongoing source of new speculators who want in on the action, which maintains or increases the value.

[xzins]

Sounds like a great way to lose money. Might be safer to invest in pokemon cards

[Vermont Lt]

And your dollar has value because someone said it did.

Same thing. Except your dollar is backed by $20 Trillion in debt.

[rawcatslyentist]

It seems to me that Bitcoin only has value because people decided to believe that it has value.

Just like the monopoly money printed and sold to us daily by Fed ex, er the Fed. The Fed is just as federal as Fed ex, why cant Fed Ex print money too?

[seowulf]

It seems to me that Bitcoin only has value because people decided to believe that it has value.

I'm still holding beany babies an cabbage patch dolls. They're due for a rebound any time now.

[Garth Tater]

"But the vast majority of the world does not use Bitcoin so why should it have value?"

It has value because it has uses. I wouldn't put too much of my capital into crypto-currencies though as they will be outlawed soon when they start cutting into the profits being made by the issuers of the more traditional, government run, debt-based currencies.

[stig]

How does this activity Warrant them getting more Bitcoin, except that everyone decided that this is how it should be? But the vast majority of the world does not use Bitcoin so why should it have value?

Why does digging in a stream and finding a certain yellowish material worth anything?

[NorthMountain]

It seems to me that Bitcoin only has value because people decided to believe that it has value.

Federal Reserve Notes have value only because the government tells you they do.

For that matter, gold only has value because people agreed that it does.

Bitcoin is worthless when the power goes down.

FRN are worthless when government orders too many of them into existence.

Gold isn't perfect. (Under some circumstances, it's utterly worthless. You can't eat it.) It has, at least, the inherent virtues or rarity and permanence.

[Former Proud Canadian]

"...Bitcoin only has value because people decided to believe that it has value."

Yup, just like those greenbacks in your wallet.

[conservatism_IS_compassion]

Bitcoin ^{any form of money} only has value because people decided to believe that it has value.

If the storeowner decides that, he advertises his wares for “only $X minus 1¢”—which is another way of saying that "$1 is worth 1/X of” whatever good or service the advertiser has on offer.

So every advertisement of the dollar-denominated price of any good or service is also an advertisement of the value of the dollar.

Oh, and BTW the government does the same thing—it offers not to arrest you if you do pay it enough tax dollars . . .