Quote:
Originally Posted by corporatejay
I don't understand who backstops this currency or how does it have any real value? It's not tied to anything, is it?
|
What backs the USD?
The only thing that gives currency value is the belief that the person accepting it can then spend it on something else.
If you can buy and sell a currency, and spend that currency on things, that is what gives it value. Since all of these things seem to me happening with bitcoins, I think that means they do have value.
I don't think the current value is realistic long term, but if it is, then it will likely be partially the result of things like money laundering, like Scott said.