Yep, just like fiat currency.
I’ve been maintaining that they were either scams to remove from people’s pockets real money or that they were case studies to see how to make money virtual, for the ultimate control.
No reason they could not be both.
Indeed. How much actual value (purchasing power) has the US Dollar lost since Bretton Woods?
Yes.
It is all based on what confidence people have in the system.
People have no confidence in the system in Venezuela so their currency is worthless.
The Norwegian krone or the Swiss franc are valued because people have confidence in the system.
Of course everything has a relative value that shifts as things change.
If you are on a boat lost at sea, food and water has the most value. If you are in a casino, chips have the most. And if you are on a plane listening to a child scream for eight hours straight a set of ear canceling headphones would be near the top. :)