Quote from: traiz on December 13, 2013, 02:34:23 AM

Ok, please help me understand something.
   Unlike gold/silver which can be used in making microcontrollers and jewelry, what inherent use does bitcoin have?
   Unlike fiat which is backed by law and must be accepted for all debts, what else does bitcoin do?

   The ease of sending "cash" over great distances instantaneously and relatively anonymously (unless you make yourself known)?
   The fact that its decentralized so no one country has control over it?
   A store of value because other people are willing to accept it?

   It can't be because one of its input is electricity, otherwise having a currency redeemable by the delivery of x_kwhr at location_a would be worth more...

Why is paper that has money symbols worth anything? Bitcoin follows the laws of supply and demand. When people want something, they trade for it. Let's say I have a new GS4. I want .8 BTC for it. You want to buy it, but you only have .7BTC, so, you go to a bitcoin exchange site. You buy .1BTC with fiat money. That is why bitcoin is worth something, and why people will pay for stuff to make bitcoins. If people want to use it as a currency, they will.

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