> Fiat currency is sustained by our obligation to pay taxes in it and the legal tender notion that the law offers to it.
The USD clearly ignores that property. It is used in many places where people have to convert it to pay taxes.
> the legal tender notion that the law offers to it
USD is debt (or is it credit) based so saying it holds value because it can be used to pay debts is a bit weird. It exists to pay debts yes, but whether that conveys its value is questionable.
> It's only power comes from the specificity of its installed client-base
Things are valued based on how much people are willing to pay for them, ECON 101.
A lot of people are interested in it because it is unique. You also have a ton (I am curious how many) of Gen Y's with Bitcoins who don't understand investing at all.
> anyone who sustains otherwise is either too less technical to notice the difference or comes close to border-line fraud to manipulate its interest in this bubble
There are two things people say.
* "Bitcoins can only go up due to the increasing interest" - That is just silly, interest can cause selling sprees just as easily as it can cause buying sprees (Now is my chance!).
* "Bitcoins won't fully crash due to the increasing interest" - IMHO this has merit, there appear to be enough people who have faith in Bitcoins to keep the system running for the foreseeable future.
So while you may lose 95%+ of your value, you won't lose 100% of your value, which many other forms of investment run the risk of.
However it is still a silly thing to have a significant percentage of your assets in, unless you are actually a risk seeking individual.
The USD clearly ignores that property. It is used in many places where people have to convert it to pay taxes.
> the legal tender notion that the law offers to it
USD is debt (or is it credit) based so saying it holds value because it can be used to pay debts is a bit weird. It exists to pay debts yes, but whether that conveys its value is questionable.
> It's only power comes from the specificity of its installed client-base
Things are valued based on how much people are willing to pay for them, ECON 101.
A lot of people are interested in it because it is unique. You also have a ton (I am curious how many) of Gen Y's with Bitcoins who don't understand investing at all.
> anyone who sustains otherwise is either too less technical to notice the difference or comes close to border-line fraud to manipulate its interest in this bubble
There are two things people say.
* "Bitcoins can only go up due to the increasing interest" - That is just silly, interest can cause selling sprees just as easily as it can cause buying sprees (Now is my chance!). * "Bitcoins won't fully crash due to the increasing interest" - IMHO this has merit, there appear to be enough people who have faith in Bitcoins to keep the system running for the foreseeable future.
So while you may lose 95%+ of your value, you won't lose 100% of your value, which many other forms of investment run the risk of.
However it is still a silly thing to have a significant percentage of your assets in, unless you are actually a risk seeking individual.