Is the Price of Bitcoin Based on Anything at All?
Is the price of any currency based on anything at all? Sure it is – the promise of bureaucrats in Central Banks that you will get what you are owed. In the developed world, we did not have many currency runs those last decades so memory of one is waning or does not exist at all. Hearing about a failing currency in another part of the world is as if a bicycle in China falls to the ground. Who cares. Until it’s your cash that goes away. Modern fiat currencies are belief systems. As long as enough people believe in it, its fine. Once that belied crumbles they collapse into nothingness and only governmental force backed up by clubs and guns will keep it around for a while longer. Bitcoin does not have the clubs and guns, but its a believe system like the fiat currencies. With the added difference that there are no unaccountable bureaucrats playing god with it.
Back in January, the controversial cryptocurrency Tether (USDT), “anchor[ed] to the price of national currencies like the U.S. dollar, the Euro, …
