Why I’m Cryptophobic
There needs to be some basic economics here..<p>Money has value because of the value of the <i>economic transactions</i> in which its conducted.<p>Government-backed currencies are <i>forced</i> to have value in the sense they <i>force</i> people to use it for their taxes. The US, additionally, forces the world to use it for oil trades.<p><i>Value</i> is in those economic transactions. A currency is just a &quot;liquifying&quot; of that value, to make it easier to spread around. So that 1hr of my time&#x2F;output can be more easily traded for 1hr of another persons. We are still <i>just trading output</i>.<p>For BTC (or any coin) to have any value, it needs actual economic transactions to be conducted in it. If there arent any, its value is smoke-and-mirrors; its not real. If you can&#x27;t trade the market cap of bitcoin for <i>actual economic output</i>, it isnt actual economic value.<p>Imagine doing that right now. Imagine BTC was actually used for any scale of economic transactions. It would collapse overnight.