Quote:
Originally Posted by Ferra
can someone enlighten me why something that has absolutely no intrinsic value be worth so much?
it seems like one of those thing whose's value is entirely dependent on people's confidence....once the confidence start fading, the entire system will collapse on itself
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What's the intrinsic value of any currency?
Burn it for heat? Except you can't even do that now with the plastic bills
It's the reason why a lot of people horde gold.. because that's the one thing they think they'll be able to fall back on if currencies crash. Thing is, what's the intrinsic value of gold? That it looks pretty? You can make nice dental accessories with it? It is a good conductor, so there's that...
The thing is, people want gold because they always wanted gold. Entire empires were built on it, and entire civilizations conquered for it. Then came silver of course.. not much more value as gold, but looks pretty so people wanted it (until Spain mined so much of it that it lost most of its value).
People are willing to trade items for gold, silver, canadian dollars, or bitcoin. That's the value of each thing.