Comment by krupan
7 hours ago
Same with all money. Please research more before parroting this argument. You are not the first person to think of it.
7 hours ago
Same with all money. Please research more before parroting this argument. You are not the first person to think of it.
Fiat money has a difference: an army. It is issued by a government which has the legitimate right to demand taxes, paid in their currency, and deprive you of life and liberty if you don't.
Ultimately the populace could repudiate the whole social contract, which is also just consensus, but that's a far bigger deal than mere money.
Well to be pedantic, in the USA at least the value of the dollar is largely maintained by civilian law enforcement rather than the military. If you incur a tax liability and fail to pay your debt in US dollars then eventually the IRS will seize your assets and auction them off to settle the debt. Due to the Posse Comitatus Act, the Army doesn't get involved.
The true value of (fiat) money is derived from the fact that contracts are denominated in that money and those contracts are enforced by a central authority with guns. No other assumption is needed in financial engineering.
GP was arguing against GGP’s point and I was simply pointing out that the argument was hollow.
What are you referring to with “research more”?
Hmm, maybe I wasn't following the thread very well? Many people like to discredit Bitcoin by saying it's only worth is what people decide it is. If that's not what you were trying to do then I apologize.
I don’t discredit any crypto based solely on its ability or inability to fulfill debts, public and private.
But I do wonder if the abstract nature of it will forever hinder its ability to do so universally.
I’m also interested why Bitcoin Cash wasn’t more successful after the fork.
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It's always hilarious when people who are unclear on the basics themselves tell other to "research more". I suppose it's the Dunning-Kruger Effect.
False. Gold and silver have intrinsic value beyond their use as currency.
True, but only a minuscule fraction of it is used for that purpose. If that were the sole source of its value, it would be worth pennies per once.
https://pse-info.de/en/scale/price - gold doesn't stand out, there are a few similar ones (Rhodium/Palladium/Iridium/Platinum). I haven't checked, but we'd probably find the gold price sits in a boring-looking distribution of the prices of other elements. Probably an exponential or something that could be mistaken for it. https://en.wikipedia.org/wiki/Prices_of_chemical_elements if you prefer wikipedia.
If it wasn't radioactive, poisonous and pyrophoric people would probably all just leap into the Neptunium market.
That is obviously false on it's face.
If it were only worth pennies an ounce, numerous industries wouldn't be paying what they do for it. The fact that many industries value it at several thousand dollars an ounce is self-evident from their continued use of it.
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Not for most people. They aren't going to smelt it down and use it to build electronics or jewelry.
For most people the value is what they can receive for it in trade. Which holds for all money.