Re: Medium of Exchange vs Store of Value

BTC is no store of value,

Explain.

Bitcoin is not backed by anything. Fiat money derives it's value by a government declaring it to be legal tender. BTC does not have legal tender status in any jurisdiction.

Been over this countless times just in the short while I have been on the board. Bitcoin is backed by the strength and security of the network as well as the safety compared to fiat. Ultimately it all comes down to trust, even with government "backed" (in that it is not actually backed by anything physical) paper money.

Quote from: Misesian on December 07, 2013, 02:02:51 PM

But I believe there is a core group of bitcoin owners who recognise the economic problems currently facing many governments and they have lost faith in the currency issued by these governments

Hi!

Ok, in that case (BTC is "backed by the strength and security of the network as well as the safety"), where is the download link where I can redeem my BTCs for that in order to store some safety in my own home, or use it in my laptop once in a while?
See? It's not backed by anything of value. You cannot trade subjective stuff as strenght, security or safety. My 2 bit cents Wink

Define value and explain how governments that confiscate peoples bank holdings provide it.

To be short and simple, economic "value" is the price of goods and services. BTC is not backed by any good or service. Exemplifying, as some can say miners are providing services, BTC would be backed by a service if 1 BTC could be redeemed by 1 doctor visit. On the other hand, the service by miners is not value, it is operational cost.
Please understand I'm not against virtual currencies, I think they can be very useful in the future.