Post
Topic
Board Economics
Re: [CHART] Why bitcoin is in a speculative bubble
by
kallekoll
on 03/12/2013, 20:18:46 UTC
Currency has value because people store it.  That is, it has value because people do not immediately liquidate units of A to get units of X.  If no one wants to hold A, A has no value.  People hold currency/gold/shells because they anticipate that it will have value in the future.  Collectively, this gives something a global value.  So, I reject the notion that value comes solely from ease of convertibility.  Gold is a perfect example.

I disagree. Something has value because people will buy it. A currency has value because people will buy it in exchange for goods and services, or other currencies. People are willing to buy gold, thats is the reason it has value.