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hueymahl

(2,865 posts)

41. Why does any currency have value?

Sun Oct 5, 2025, 02:38 PM

Oct 5

The intrinsic value of gold is maybe 10% of its market value because it is used as a store of wealth. But gold is very hard to use in trade because it is heavy and often heavily regulated. 90% of its value is just because people trust someone eventually will want to buy it.

BTC's advantage is it has no third party you must rely upon or get permission from to own or trade. With gold, I have to meet you in person or use a trusted intermediary. BTC does away with that. I can trade it with anyone in the world without anyone's permission or assistance to do so.

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Bitcoin hits all-time high above $125,000 [View all] RandiFan1290 Oct 5 OP

This is Krasnov's economic plan gab13by13 Oct 5 #1

Bitcoin is a load of crap. LPBBEAR Oct 5 #2

Yeah, I don't get it either moose65 Oct 5 #3

Anyone else on here remember the penny stock fad? llmart Oct 5 #16

Yep, unfortunately I do. Talitha Oct 5 #21

I am so sorry. llmart Oct 5 #33

Thanks for your thoughtfuless - no harm, no foul. Talitha Oct 5 #66

Greater Fool Theory, apparently. C_U_L8R Oct 5 #31

It is substituting computational hardware and energy consumption for Wealthy Bankers IbogaProject Oct 5 #51

As I used to say back when Bit coin was worth about $35,000, if you were selling your car Bengus81 Oct 5 #4

And if you had taken payment in BTC, you would have an asset worth 400% more than you paid for it hueymahl Oct 5 #18

Which is why its useless as actual currency. Callie1979 Oct 5 #40

There's going to be another Bankman Fried disaster in the future,doubtfull they'll be Bengus81 Oct 5 #57

Totally agree - it is not a good currency right now hueymahl Oct 5 #64

I'd say you should always have a good supply of cash on hand. Callie1979 Oct 5 #67

LOL...you assuming someone selling a $35K car has it paid off Bengus81 Oct 5 #56

It's like using shells or any other token, as long as there is trust it works. The electricity/cryptography is trust Blues Heron Oct 5 #6

Except that bitcoin will NEVER be stable enough to be usable as an actual currency William Seger Oct 5 #12

All currencies are based on trust, whether it's the full faith and credit of whatever country, piles of gold, etc. Blues Heron Oct 5 #13

Two things you want from a currency: stability and universal acceptance William Seger Oct 5 #14

Depends on how you define stability hueymahl Oct 5 #20

I define stability as NOT being like this: William Seger Oct 5 #27

But what does a bitcoim actually have to KEEP that trust DonCoquixote Oct 5 #26

Why does any currency have value? hueymahl Oct 5 #41

And when the BTC algorithm gets cracked, what will you have then? Callie1979 Oct 5 #43

that is a theoretical risk with quantum computers coming online hueymahl Oct 5 #47

So we're to trust an "asset" invented by someone no one knows, Callie1979 Oct 5 #53

Strong cryptography that says those bitcoins belong to you, like your bank says those dollars are yours Blues Heron Oct 5 #68

But.... moose65 Oct 5 #61

Your bank account is just a number on a ledger. The value is in the cryptography. Blues Heron Oct 5 #69

The danger... lonely bird Oct 5 #70

Finally another kindred sole on here! hueymahl Oct 5 #19

Of course, you want more DU members to "come around" William Seger Oct 5 #28

No, I want everyone to do well hueymahl Oct 5 #39

If you believe cryptocurrency is a good investment but real currency is not... William Seger Oct 5 #65

But it would also allow rogue governments like Russia & china to get away with MORE Callie1979 Oct 5 #42

Banks are already adapting hueymahl Oct 5 #50

You forgot to mention a salient point: FakeNoose Oct 5 #23

No currency token is worth anything by itself. they are bits of plastic or paper or cheap alloys. Blues Heron Oct 5 #32

You just called gold useless & then described some of its uses. Callie1979 Oct 5 #44

When was the last time you got a gold coin in your change? Blues Heron Oct 5 #49

"Coin" wasnt one of the uses. Industry uses a LOT of gold. Callie1979 Oct 5 #52

As a token of exchange it is pretty useless to you or me, except as decoration. Blues Heron Oct 5 #54

Still Worthless VeryProgressive Oct 5 #5

It's like a giant slot machine. mdbl Oct 5 #7

It should have been drowned in it's infancy. Buddyzbuddy Oct 5 #8

I'd buy the "limited quantity" argument, if it were just Bitcoin. But new cryptocurrencies are being created all the progree Oct 5 #9

One repeated line I remember from the Pawn Stars show: William Seger Oct 5 #29

Yup, that too progree Oct 5 #35

This message was self-deleted by its author Emile Oct 5 #10

We allknow that someday some people will bluestarone Oct 5 #11

Gold is tapping $3900 too bucolic_frolic Oct 5 #15

Bitcoin is tulip mania with electrons. Until you dobleremolque Oct 5 #17

Coming soon hueymahl Oct 5 #22

I wonder ....... dobleremolque Oct 5 #34

I don't understand the point of your question hueymahl Oct 5 #38

Somethings not right with this economy. Gold and Crypto pinging in lockstep with the markets with high interest rates Cheezoholic Oct 5 #24

The common denominator is the dollar is being devalued hueymahl Oct 5 #45

The only way anyone would "lose everything" in '08 is if they SOLD. Callie1979 Oct 5 #46

I was specifically comparing it to the tech bubble in the late 90's not the housing loan fiasco in '07 Cheezoholic Oct 5 #59

I personally think Bitcoin is a pyramid scam, Emile Oct 5 #25

Both. Callie1979 Oct 5 #48

of course rampartd Oct 5 #30

The greater fool theory. lostincalifornia Oct 5 #36

Gonna be interesting when the BTC algorithm is cracked. Callie1979 Oct 5 #37

It's open source Blues Heron Oct 5 #58

My brain is still Windows 98 so thats just like a foreign language. Callie1979 Oct 6 #71

There's one born every minute orangecrush Oct 5 #55

i own some. a small amount moonshinegnomie Oct 5 #60

Wait for the Crash Deep State Witch Oct 5 #62

Trump loves this news. Gimpyknee Oct 5 #63