Bitcoin actual value

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Bitcoins are purchased or mined to earn USD. Bitcoin does not standalone it is tethered to the USD. Isn't more a commodity instead of a currency? If the confidence in the dollar drops, Bitcoin has no actual standalone value. For example, if I have a freezer of pork bellies worth 1 million USD, and the dollar drops, I can trade pork bellies for goods or services, making pork bellies an independent currency. Bitcoins cannot do this.

So beyond speculation measured in USD, what is the value of Bitcoins?

Curtis Walton

Posted 2018-01-30T18:47:40.577

Reputation: 1

1The value of anything is what someone else will pay for it. Bitcoin is not tethered to USD - if it was, it's USD value would be constant. That's what tethered means. You can only trade pork bellies for goods or services if someone else wants your pork bellies (and at a value you're willing to give them up for), just like Bitcoin. – ceejayoz – 2018-01-30T19:01:13.407

1Pork bellies are also purchased or sold to earn USD. Does that mean pork bellies are tethered to USD? – David Schwartz – 2018-01-30T21:22:28.187

Answers

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Yes pork bellies are tethered to USD. But if the dollar disappeared, I could use pork bellies as currency to trade for goods and services, so a pork belly can stand alone. A Bitcoin cannot stand alone, its only value is in transferring it to USD. If USD disappeared, Bitcoin cannot maintain a value. Im not arguing against cryptocurrency, I'm just trying to understand its value besides speculation in USD.

Curtis Walton

Posted 2018-01-30T18:47:40.577

Reputation: 1

Asked: 2018-01-30T18:47:40.577

Viewed: 57 times

Active: 2018-01-31T19:58:09.437