Quote:
Originally Posted by BillyBishop
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Relevant quote in that article
"First off, [currency] doesn't have to have any intrinsic value. [It] only has value because we, as a society, decide that it does."
People traded gold because it was relatively hard to get, but lasted long, and was convenient to trade once smelted into coins. Bitcoin is relatively hard to get, lasts forever, and the 'coins' are digital so easy to trade.
Gold is $1200 an ounce because, hey, it's gold. We've always valued gold. If one of the main government backed economies collapse, I'll be able to sell my gold for another... Or if shit really hits the fan, maybe smelt my own coins and trade that directly? (people who own a lot of gold, you do have access to it right? if the economy collapses, you'll be able to go get it and hold it yourself right?)
Bitcoin is $800-1000 a coin because people think it may be really important to our future. And the speculators of course...
I stopped reading that article after the author used the word "guesstimated" though
