You say that the USD isn't backed by anything....Bitcoin isn't either.
The solution to this equation doesn't fit. The wheel keeps on spinning while people say it is this and that, pointless.
USD and Bitcoin is just another thing that people could barter with each other.
Topic: [2016-09-13]How To Turn Bitcoin Into A Bona Fide Money (Read 377 times)
I have a little difficulty here: "The more bitcoin circulates as bitcoin within the blockchain before being converted back into fiat, the more valuable it gets,"
The price of bitcoin keeps fluctuating so people are careful using it to pay for goods and services.
The price of bitcoin keeps fluctuating so people are careful using it to pay for goods and services.
The first part is simple, you should be able to use actual money in various places, not restricted places and services.
So the more bitcoin circulates, the more valuable it will become.
I have a little difficulty here: "The more bitcoin circulates as bitcoin within the blockchain before being converted back into fiat, the more valuable it gets,"
The price of bitcoin keeps fluctuating so people are careful using it to pay for goods and services.
The price of bitcoin keeps fluctuating so people are careful using it to pay for goods and services.
At present, Bitcoin is a good way to transfer money, trade and speculate on the value of money, and store money. It is not itself a money, not yet. If we want it to be a money, here’s what we need to do. First, a bit of background.
Here’s an exercise. Hold a dollar bill in your hand, or $5 or $10 or whatever, or a euro, or a £5 note. Think about what you’re holding, and think about why it has value. Hard money libertarian types often like to say things like “The Dollar has no intrinsic value,” and that’s kind of true. But let’s sharpen that statement and try to figure out where exactly whatever value fiat money has, comes from. Certainly it has some kind of value, but from where does that value stem?
http://calvinayre.com/2016/09/13/business/how-to-turn-bitcoin-into-a-bona-fide-money/
Here’s an exercise. Hold a dollar bill in your hand, or $5 or $10 or whatever, or a euro, or a £5 note. Think about what you’re holding, and think about why it has value. Hard money libertarian types often like to say things like “The Dollar has no intrinsic value,” and that’s kind of true. But let’s sharpen that statement and try to figure out where exactly whatever value fiat money has, comes from. Certainly it has some kind of value, but from where does that value stem?
http://calvinayre.com/2016/09/13/business/how-to-turn-bitcoin-into-a-bona-fide-money/
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