Good post. Its just like fiat currency. It only has value because some central bank in some country states it does, not backed by a gold standard anymore. This is the same, just no central bank or country behind it. Its worth something because there are supposedly only so many coins to mine, and it becomes hard to mine as time goes by.
I agree with the gold standard gone "money" has lost a lot of "value"
but as you pointed out that the fiat currencies are still backed by governments.
Which means in turn that you have millions of people that say they accept this currency.
We could make a currency out of anything, the difference is that which one is backed by the general population.
Bitcoin is not backed by the general population, only a few speculators.
Even gold and diamond has more value than that because "if the world went into total anarchy" then gold and
precious metals could still be used to create technology, but bitcoin creates ...nothing
I am not standing up for all the central banks actions over the past few decades, as they have made
several horrific mistakes, but unfortunately I still believe its a necessary evil.
The difference can be seen with last weeks hack on ETH, after the money is stolen who helps you recover it?
Fiat currency comes with investigators, police and a legal system...whereas Bitcoins comes with nothing.
Buying BITCOIN at this point in time is speculative, because one is betting on the fact that
EVEN if governments fail that you predict that they wont try and solve it, rather than moving
over to a currency that only 0.001% of population holds....That is quite a bet in my opinion.
Barring discussions of what it COULD be, at this point in time, it only falls
in the same category as highly speculative collectibles, like pokemon cards.
Because you literally cant do anything with it, its just a bunch of bytes on the computer system.
Its positioned to take over other currencies, but that doesnt mean it will...
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