Bitcoin continues to drop in value (December 11, 2018)

[Flyer35]

This is a serious question - how does something that has no intrinsic value, and is not backed by anything that has any intrinsic value, go up in value? Most people say - demand and supply. If more people want it - its value goes up. If the available supply decreases in relation to a growing demand, it's value goes up. But again. if it has no actual value to start with, this all seems more like smoke and mirrors than anything else.

It would seem logical that it gets its value from people's desire to spend it when buying goods or services, i.e., to use it as an actual currency. BUT, if the primary goal of legitimate investors is to realize a gain in value, then logically they would not want to spend it. Rather, they would be more inclined to hold onto it. The only people who would have a real desire to spend it would be criminals and people who do not have access to fiat currency.

Don't get me wrong. I'm actually invested in crypto. Why? Because even though it has no actual value, enough people think it does so the price goes up.

 

[S3mper]

This is a serious question - how does something that has no intrinsic value, and is not backed by anything that has any intrinsic value, go up in value? Most people say - demand and supply. If more people want it - its value goes up. If the available supply decreases in relation to a growing demand, it's value goes up. But again. if it has no actual value to start with, this all seems more like smoke and mirrors than anything else.

An item's price isn't solely determined by its intrinsic value. Think about paintings, Pokémon cards, or even gold which only about 10% of its value comes from industrial use. The rest is social consensus and scarcity, similar to BTC (And everything else)

Bitcoin’s value comes from its scarcity, borderless, secure and fast (only 21 million will ever exist) and decentralization. No central authority can inflate it or censor transactions, all of which (and more) give it value, especially in unstable economies.

It would seem logical that it gets its value from people's desire to spend it when buying goods or services, i.e., to use it as an actual currency. BUT, if the primary goal of legitimate investors is to realize a gain in value, then logically they would not want to spend it. Rather, they would be more inclined to hold onto it.

You can do both. Bitcoin works as a store of value and as a currency. Should you spend a store of value? I would vote no which is why I "HODL" and I would especially vote no during the price discovery phase of BTC's life. If one absolutely needs to spend it, I would probably suggest leveraging it instead if possible.

The only people who would have a real desire to spend it would be criminals

Bitcoin is actually not that great of an asset for criminals as it's pseudo anonymous not anonymous and every transaction is open on a public ledger. The best asset for criminals to spend is objectively the US dollar and which is currently the most used currency to do so.

Other people who would look to spend it are people who need to buy things who hold BTC because their countries currency is a complete mess or maybe who want to send it across borders with ease almost instantly. Or can't otherwise (More on that below)

and people who do not have access to fiat currency.

This is actually an important point that shouldn’t be taken lightly. Bitcoin isn’t just useful for people in oppressive countries it’s also crucial as a safeguard against government overreach. For example, it gives people a tool against being debanked, which is important for protecting civil liberties like freedom of speech and allows innovation.

If people fear being debanked (even if the threat is only perceived) they may choose to self-censor, for fear of backlash from governments, institutions, or banks. That’s a dangerous silencing tool. And it’s already being used

Examples:

- "Operation Choke Point 2.0" has debanked crypto firms without charges (Or attempting to) Such as Silvergate, Signature Bank, and Silicon Valley Bank
- Binance faced exclusion from banking systems before legal proceedings even began.
- Pornhub had its financial services shut off (Pretty much soley relies on crypto at this point)
- Wiki inks as well as journalist have been banned from paypal

The ability to access or send money has definitely been weaponized, and "Bitcoin fixes that"

 

[Ricey155]

This is a serious question - how does something that has no intrinsic value, and is not backed by anything that has any intrinsic value, go up in value? Most people say - demand and supply. If more people want it - its value goes up. If the available supply decreases in relation to a growing demand, it's value goes up. But again. if it has no actual value to start with, this all seems more like smoke and mirrors than anything else.

It would seem logical that it gets its value from people's desire to spend it when buying goods or services, i.e., to use it as an actual currency. BUT, if the primary goal of legitimate investors is to realize a gain in value, then logically they would not want to spend it. Rather, they would be more inclined to hold onto it. The only people who would have a real desire to spend it would be criminals and people who do not have access to fiat currency.

Don't get me wrong. I'm actually invested in crypto. Why? Because even though it has no actual value, enough people think it does so the price goes up.

Why is anything worth what they charge you.

I like BTC no CEO it does what it wants when the people vote and no money printer. The fixed supply works.

I was in somebodies house having my original xbox fixed and he was mining BTC solving something on screen I was interested then didn't follow up. What a mistake missed 6-8 years easily.