What is supposed to be the monetary underpinning of cryptocurrency?

[jz78817]

@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.

[CookingWithGas]

@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.

[ftg]

@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.