I struggle with the non-physicality of Bitcoin. In the past, the non-monetary demand for an item used as money had significant effects on its monetary value. Moreover, monetary demand for said item affected its non-monetary value. Bitcoin, like fiat, has no non-monetary use.https://twitter.com/MustStopMurad/status/1029482987338035202 …
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Replying to @cryptorae
If Fiat is worth $90T+ without having any commodity/industrial/use-value, then why can't Bitcoin? We as humans can collectively subjectively and game-theoretically decide what can be our money. Mises even argued that Gold's industrial premium made it less than ideal.
2 replies 4 retweets 16 likes -
Replying to @MustStopMurad @cryptorae
Fiat is worth something because it is backed by men with guns and you pay taxes in it Bitcoin is backed by much less, but is a hedge (imo a smart one) against the mismanagement of an economy by government. It’s a trade off between “backing” and centralization of power/decision
1 reply 3 retweets 3 likes -
Replying to @AviFelman @cryptorae
Venezuelan bolivars are ""backed"" by soldiers too but look at how worthless its become I'd say Bitcoin is backed by much more! algorithmic scarcity and an inpenetrable fortress of full nodes, brilliant engineers/cryptographers far more capable than any bureacrat or gunman!!!
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Replying to @MustStopMurad @cryptorae
Yes, they become worthless due to mismanagement of the economy -- but what happens if they send those men with guns to stop people from using BTC? Suddenly the bolivar looks appealing again.
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Two things at play here 1. Backing 2. Trust in a system. I'm saying BTC has less instrinsic value/backing than fiat or gold, but allows you to purchase trust more cheaply than fiat or gold. It's your decision to make. Both are important.
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there is no such thing as "intrinsic value" =) all value is subjective.
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