That's the interesting thing about crypto. It backs itself in the same way any fiat currency does - faith in its stability and trustworthiness. The people who do not have faith in it, do not understand it, or DO understand it and hate what it could do to the banking cartel.
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is that a bet?
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I guess at that point I may admit I was wrong if crypto retains value.
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I don't think POW gives Bitcoin "value" (weird variation on LTV?). Rather, work done is determined by Bitcoin's value. POW is simply a method for securing the ledger/token scarcity. If fiat relies of anti-counterfeiting tech & sovereign violence, Bitcoin has cryptography & POW.
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But once scarcity is established, explaining value becomes easier. Is there a desirable and unique usecase? Silk Road found one. If the usecase is conditional on holding tokens, then supply and demand yields price. Price volatility simply results from speculation on future price.
End of conversation
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