Help with Bitcoin

[c00face]

I can't compute in my head for the life of me, how exactly can something like this be treated as currency? It's not backed by gold, it's not backed up by anything. How exactly does Bitcoin have value on the market, when it's just a game that player "mine" to get on the internet? What gives Bitcoin its value on the market, for companys like Overstock and Amazon to allow user to buy items with it? How exactly is it that Bitcoin can be exchanged for USD when it has no value, it absolute is nothing and is just virtual? In my head, it's like someone just won 10 Putt Putt tokens, and he can use that token to buy goods. Can someone please explain the concept of how exactly Bitcoin has value?

[spartaman64]

the american dollar isnt backed by anything except the goverment telling you it has worth

and why does gold have value? because its rare and it lasts a long time so its a good ledger bitcoin is similar

[c00face]

the american dollar isnt backed by anything except the goverment telling you it has worth

 

There was a long process that took place before the American dollar came to what it is. At one point in history, it was backed up by gold. There was a big fight until people finally accepted the idea of having a piece of paper be used for trading in the form of gold. Of course, that time has changed, and the dollar has a lesser value than what it was before, but the idea is that it's still backed up by gold. So it's understabable to why the dollar has value. But as to Bitcoin, it has none. It's like someone just made up a game to allow virtual coins, and all of a sudden, it was accepted as currency into the air.

[spartaman64]

There was a long process that took place before the American dollar came to what it is. At one point in history, it was backed up by gold. There was a big fight until people finally accepted the idea of having a piece of paper be used for trading in the form of gold. Of course, that time has changed, and the dollar has a lesser value than what it was before, but the idea is that it's still backed up by gold.

you mean it was. and why does gold have value is pretty much similar reason to why bitcoins have value

[rustikles]

I can't compute in my head for the life of me, how exactly can something like this be treated as currency? It's not backed by gold, it's not backed up by anything. How exactly does Bitcoin have value on the market, when it's just a game that player "mine" to get on the internet? What gives Bitcoin its value on the market, for companys like Overstock and Amazon to allow user to buy items with it? How exactly is it that Bitcoin can be exchanged for USD when it has no value, it absolute is nothing and is just virtual? In my head, it's like someone just won 10 Putt Putt tokens, and he can use that token to buy goods. Can someone please explain the concept of how exactly Bitcoin has value?

Here's a reasonable enough article about why "X" currency has value. That can be bitcoin or the US Dollar.

 

TL;DR - Money has no inherent value. Value is given to currency by the people that use it. That's why economies can have things like inflation/deflation. I can't think of any currency fully backed by a physical good like gold anymore. It just became impractical in "mature economies".

[roastduck]

This is why I love living in the south. Trade for service is pretty common down here. I'll do work for someone (fix a car/computer/whatever) and call in a favor later.

[c00face]

you mean it was. and why does gold have value is pretty much similar reason to why bitcoins have value

 

Gold has value because it can be used. It was precious metal, and it was rare. Bitcoin can't be used, it was made up, just like someone made up about the boogey man. How exactly are you going to take boogey man, and make profit out of it, and why would you even want to use it to trade for goods? How exactly did bitcoins become profitable and something that other companys are willing to trade for?

[spartaman64]

Gold has value because it can be used. It was precious metal, and it was rare. Bitcoin can't be used, it was made up, just like someone made up about the boogey man. How exactly are you going to take boogey man, and make profit out of it, and why would you even want to use it to trade for goods? How exactly did bitcoins become profitable and something that other companys are willing to trade for?

gold has value because its rare and it lasts a long time

bitcoin is rare and it lasts a long time

[c00face]

gold has value because its rare and it lasts a long time

bitcoin is rare and it lasts a long time

 

But I'm understanding to why it has value now. It's because people are willing to buy and use real commodities to get it. Just as much as someone willing to buy virtual money in a game, they'll stake $300 just for that fake virtual currency in a game. Same goes for Bitcoin, and thus, it has value because people are willing to buy and trade with it. What a shock that someone would be willing to give fake virtual currency value.

[spartaman64]

No.

 

But I'm understanding to why it has value now. It's because people are willing to buy and use real commodities to get it. Just as much as someone willing to buy virtual money in a game, they'll stake $300 just for that fake virtual currency in a game. Same goes for Bitcoin, and thus, it has value because people are willing to buy and trade with it. What a shock that someone would be willing to give fake virtual currency value.

there is a set amount of bitcoin and as long as people dont lose the passwords to their bitcoin wallets or something they will last forever so it surpasses gold in the reasons why gold is valuable 

[c00face]

there is a set amount of bitcoin and as long as people dont lose the passwords to their bitcoin wallets or something they will last forever so it surpasses gold in the reasons why gold is valuable 

 

Hmm.. well i don't know if it'll last forever. But, to have a currency that isn't dedicated by banksters and regulations, seems rather nice. but the work to get some bitcoin, seems very taunting. who would be willing to invest in $3,000 in equipment that might fail within the next 2-3 months or so because the difficulty increased? just seems very risky. i dont know who made big bucks investing in bitcoin in the 2015 era. If you invested during the 2011-2013 era, then you definitely made profit. but as to profitable gains now, i just don't see it happening.

 

just a scary thought to invest in something, that might just disappear into thin air the next moment. and all of your $10,000.00 bought bitcoin would probably be worth less to nothing.