Post
Topic
Board Economics
Re: If Bitcoins aren't tied to a conventional currency how did they get so valuable?
by
Mpamaegbu
on 30/07/2018, 07:56:24 UTC
If Bitcoins aren't tied to a conventional currency, how did they get so valuable?
Nothing in life is truly isolated. For one to get the true value of anything it has to be compared with another. That is what bitcoin does. It has to square up to a fiat. Dollar is the most widely accepted of all the fiats (Pounds and Euros inclusive). And that is why bitcoin is paired with the dollar. So, when people advocate for the abolition of banks so that cryptocurrency can become mainstream I look at them and take a good laugh. Abolition of banks will mean goodbye to fiat, right? That isn't going to be possible.