Bitcoin is ultimately worthless vapor. It is the most fiat of fiat currencies, produced out of waste. It is the wet dream of anarchists and Occupy Wall Street who want to “stick it to the eeeeeevil bankers.” It will ultimately be banned.
On the flip side, it has some deluded cheerleaders who will tell you it is a “real currency” and “the future.” So, I guess that’s something.
Bitcoin is more worthless than Enron stock, however, and - like those Enron stock bag holders - you don’t want to get caught holding this particular bag. At least Enron stock had some office furniture and equipment attached to it that could be liquidated when it came crashing down. Bitcoin is nothing.
So Bitcoin is fiat currency, just as dollars are.
The value of money is the “full faith and credit” of the United States, and the fact that we all agree that it is worth something in exchange for goods and services.
It sounds like the same is true of bitcoin. It’s based on everyone involved having faith that a bitcoin unit is worth a certain amount in exchange for goods and services, if you can find people willing to accept payment in bitcoin.
I understand bitcoin operates outside the established banking system. But what happens if the system crashes??
So Bitcoin is fiat currency, just as dollars are.
The value of money is the “full faith and credit” of the United States, and the fact that we all agree that it is worth something in exchange for goods and services.
It sounds like the same is true of bitcoin. It’s based on everyone involved having faith that a bitcoin unit is worth a certain amount in exchange for goods and services, if you can find people willing to accept payment in bitcoin.
I understand bitcoin operates outside the established banking system. But what happens if the system crashes??