By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Politics - Bitcoin, and other cryptocurrencies, need havê their own economy.

SamuelRSmith on 13 December 2014
invetedlotus123 said:

Bitcoin not even that, no one accepts bitcoin in itself, we value bitcoin directly in the exchange rate for The real world currency se use. Rice costs X euros in france independetment of The exchange rate of euro and dollar. Every bitcoin value is directly attached to how much The item cost with real currency. Its more like bitcoin is a ticket than money.
I


This is false. Exchange rates very much do have an effect on prices of goods purchased from abroad. Just ask Canadian PS4 owners.

Volatility is the issue, it's just more noticeable with bitcoin because bitcoin is far more volatile vis-a-vis other currencies than is the norm.

Will volatility diminish? Maybe.



Around the Network
SamuelRSmith on 13 December 2014
invetedlotus123 said:

I think it's an out of place comparison. Those metals havê economic value in their selves, actually, they are products often sold for industry and consumer uses. Dollar, euros, reais and any other modern currency are pretty useless in theirselves, they are useful for purchasing things, and they are used for that just because se know if se accept them other people are accepting it too.


Bitcoin also has economic value in and of itself. Reduced costs of international transactions, for one. Reduction in potential fraud for another. Things like coloured keys being used for product authentication are other possibilities.