- If you base the value of the crypto-currency on the paper money value, you are doing it WRONG...
Everything in the world can be valued in terms of something else. There is no wrong or right about it, it's simply how it works.
I can say that computer monitor costs $150 dollars.
I could also say that computer monitor costs 41.66 gallons of gas. This is because today 41.66 gallons of gas costs $150 dollars (or 1 computer monitor).
All three things can fluctuate and change relative to each other. Tomorrow gas could cost more dollars per gallon, and if dollars per monitor remained stable you would be able to pay less gas for a monitor.
Of course we don't think this way because we simply price everything in the most common form of money we use daily, your local fiat. It's perfectly natural to price a new currency in your local fiat as well.
If you don't agree, sell me your house for 1 bitcoin. Don't base the value of that bitcoin on your local fiat, trust me, it's worth as much as your house.
I didnt mean it like that, what I mean is don't compare it to something that it is to replace. But not in its fullest sense either. Value of items always changes, but there needs to be a point at which something has a semi-absolute value in the future. I'm way too tired to try to explain exactly what it is I mean.
your gasoline theory is wrong, so is your monitor theory due to the fact that you dont have all of the specifics listed, and that is where the problem comes in.
I can get gasoline for cheaper if I go to a different gas station, yes that is how things "should" work based off of supply and demand, convenience, lazyness, skills, abilities, greed, etc.
There are several thousand different computer monitors out there, what is to decide that that particular one is worth $150, it could be an old worn out one... or a defective one, again... I can get that same one for cheaper somewhere else.
Money itself offers no gain to you... if nobody accepted it, it would be worthless...
Gasoline could be used in your car...
A monitor can provide you viewing pleasure...
Basically this is why bitcoin should'nt be compared to money.
What we need to do is create a need for bitcoin itself, a non-illegal one.
if I'm rambling on here, please spare me the comments, I really should'nt post with this level of sleep, however I don't want to forget to reply.
Peace!
[/list]