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Topic: How did bitcoin obtain it's value? - page 4. (Read 3786 times)

newbie
Activity: 43
Merit: 0
November 14, 2014, 01:31:40 AM
#3
Power bills, difficulty rate, mining rigs cost etc

I mean the permissions to be able to transfer that bitcoin value into USD - Doesn't the governments have to allow that bitcoin value to be allowed to transfer into there currency? Does this mean there is significant government involvement in bitcoin since they allow it to be traded into the nations currency?
full member
Activity: 126
Merit: 100
November 14, 2014, 01:25:09 AM
#2
Power bills, difficulty rate, mining rigs cost etc
newbie
Activity: 43
Merit: 0
November 14, 2014, 01:24:17 AM
#1
The currency obviously has been given it's value somehow. I know it is preached to be different than regular fiat currency, but I am very curios how it went from an idea to now being able to be used for purchases, and given a value in relation to USD.

Me and a group of friends cannot come up with an idea for something to be used for transactions and then have that idea be able to transform into a countries currency. We can trade amongst ourselves but there is no way we can give it a value to be used to trade it into dollars. There has to be some type of government involvement in order for bitcoin to have a value in relation to a nations currency.

My question is how is the original concept of bitcoin given a value in dollars? Does this mean there is significant government involvement in bitcoin?
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