this post was submitted on 06 Feb 2024
1 points (52.9% liked)
Economics
1693 readers
10 users here now
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
The only thing that guarantees Bitcoin's worth is thoughts and prayers.
The US government has aircraft carriers.
People don't use USD because the US will bomb them if they don't. They use USD because they trust the fiscal policies of its issuer and many places accept USD (network effect). Not every country likes using USD because we use it as a tool of imperial control over others, so sometimes they choose other currencies. Not often though, because they don't trust the issuers of those other currencies.
Bitcoin has fiscal policy that is backed by math and physics instead of the whims of a national government and its network effect grows more each year. Only time will tell if that can result in Bitcoin becoming a global reserve currency.
A powerful entity backs the USD is the point. Military might provides a certain level of stability. It's not about forcing the use of the dollar; you don't have to.
Bitcoin is hot air and a poor use of electricity.