# What is supposed to be the monetary underpinning of cryptocurrency?

**URL:** <https://boards.straightdope.com/t/what-is-supposed-to-be-the-monetary-underpinning-of-cryptocurrency/844040>\
**Category:** Factual Questions\
**Created:** [November 27, 2019, 1:17am UTC](https://boards.straightdope.com/t/what-is-supposed-to-be-the-monetary-underpinning-of-cryptocurrency/844040 "2019-11-27T01:17:21Z")\
**Posts on this page:** 3\
**Page:** 2

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**Author:** ![jz78817](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jz78817/32/1028_2.png) [@jz78817](https://boards.straightdope.com/u/jz78817)\
**Post date:** [November 28, 2019, 6:36pm UTC](https://boards.straightdope.com/t/what-is-supposed-to-be-the-monetary-underpinning-of-cryptocurrency/844040/21 "2019-11-28T18:36:17Z")

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> [@Mangetout](#):
>
> Currencies have value as long as people believe they have value (and as a result of that belief) are prepared to accept them in exchange for goods, services, other forms of currency etc.
> 
> This applies to anything. Gold, even, whilst it has value of a sort as a useful, but scarce material, only has value because people think so.

it’s not even _that_ useful. IIRC reading that of the mined gold in existence, 50% is sitting in vaults as bullion, 40% is jewelry, and the remaining 10% is used for things like electronics.

whether we want to debate how “useful” jewelry is is up to the board.

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**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\
**Post date:** [November 28, 2019, 6:38pm UTC](https://boards.straightdope.com/t/what-is-supposed-to-be-the-monetary-underpinning-of-cryptocurrency/844040/22 "2019-11-28T18:38:44Z")

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> [@jz78817](#):
>
> whether we want to debate how “useful” jewelry is is up to the board.

It’s useful to signal wealth. So it kind of goes in circles.

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**Author:** ![ftg](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ftg/32/2801_2.png) [@ftg](https://boards.straightdope.com/u/ftg)\
**Post date:** [November 28, 2019, 9:35pm UTC](https://boards.straightdope.com/t/what-is-supposed-to-be-the-monetary-underpinning-of-cryptocurrency/844040/23 "2019-11-28T21:35:14Z")

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> [@CookingWithGas](#):
>
> It’s useful to signal wealth. So it kind of goes in circles.

Which is why you see Bill Gates and Jeff Bezos so covered in jewelry that can’t even move.

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