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Your periodic reminder that Bitcoin is a fiat currency

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bitcoin 

@craigmaloney

oddly enough you can't use it to buy a Fiat 500.

bitcoin 

@craigmaloney I saw an argument that bitcoin should be thought of as more like a stock share, except its not backed by anything.

bitcoin 

@alienghic @craigmaloney

Yeah, Bitcoin is publicly traded with no company valuation or bank account to judge prices by.

But, the same is true for gold, oil.. and fiat currencies!

At least gold, oil, and BTC have a fundamental value based on gathering cost (if too cheap, it's left in the ground, when it rises, more cost is afforded to mine), plus demand/scarcity.

Bitcoin is crazy expensive to mine, and guaranteed scarce. Even at current highs, miners barely breaks even after 2+ years.

bitcoin 

@krinkle @craigmaloney oil and gold also have a fundamental value because theyre intrinsically useful. Either for providing energy and plastic, or corrosion resistant contacts

bitcoin 

@craigmaloney The whole "fiat currency" meme sets my teeth on edghe. It tends to be used by people who think they are being very clever and sophisticated despite knowing nothing about the topic.

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