[JimRed]

The “value” of our currency is based on the full faith and credit of the United States (I know, it should be based on gold, silver, copper, lead or other hard assets).

Upon what is bitcoin value based? Can you buy it with paper on full faith and credit?

[jjsheridan5]

Upon what is bitcoin value based? Can you buy it with paper on full faith and credit?

The value of bitcoin lies in three things. First, bitcoin is an inherently safer and much less expensive method for transferring wealth from person A to person B. Think of it not as a currency, but rather as a rival to Paypal. Second, the bitchain ledger framework provides an unparalleled source for non-tamperable and fraud-resistant records of transactions. This provides tremendous value to bitcoin, as a method of payment. Third, because a "bitcoin" is just a number, it can be stored off-line, and opens up security and redundancy options that are simply impossible with other forms of currency, and impossible with metals.

The value of bitcoin is indirectly derived from those three things. Directly, the value of bitcoin comes from its adoption as a method of payment (for goods, payroll, intra-company, etc.). If it is used, the value of bitcoin goes up. If it is not used, the value of bitcoin will ultimately go down. Its use, in turn, is derived from the advantages listed above.