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How do bitcoins have value? - Page 2

post #11 of 13
The more I read about it and how it works, the more I realize bitcoins are exactly what "credits" are in sci-fi movies and games. A completely electronic means of storing and transferring money that's usually fast to process and without needing a middleman to authorize payments. Chargebacks are impossible due to its cryptographic security.

What gives money its value, above all things, is its general acceptability from a large group of people. High school econ stuff.
post #12 of 13
Exactly, the same way most other currencies work, a $20 bill is only worth $20 because everyone agrees it is redeemable for $20 of goods and so on.
post #13 of 13
Quote:
Originally Posted by ./Cy4n1d3\. View Post

The same way that the dollar has value... Because, at this point, it is a commonly accepted way to exchange money and we agree to use it. Generally, if you go to a store, you fully expect them to take your dollars. If they didn't, dollars would be worthless. We haven't had gold to back our money in years, so actually each dollar is only valuable because it can be used to exchange goods and the supply is somewhat limited. Same with bitcoins

That's because China owns all your gold biggrin.gif
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