You are viewing a single comment's thread from:
RE: Why Are Bitcoin, Steem And Other Cryptocoins Worth "Real" Money?
I think you're missing a key point with this statement: " This is why cryptocurrency cannot stand on it's one without a fiat currency". Ask yourself, why is fiat money worth anything, and I think you will eventually come to the conclusion that the answer is no different than the answer for cryptocurrency (hint: it's the first statement in your thesis).
Right now, Steem has value because you can exchange it for bitcoin. I don't have to exchange bitcoin for fiat for it to have value for me, even though the merchants accepting it are likely exchanging it for fiat. I can and do spend bitcoin all the time. I've never exchanged it for fiat but have always exchanged dollars for bitcoin. I prefer to have my weath stored in bitcoin. Someday, the merchants will, too, and few will care what the exchange rate for bitcoin vs fiat is.
"Right now, Steem has value because you can exchange it for bitcoin": this isn't strictly true, although it's a position likely to be taken by a bitcoin maximalist. All the arguments used to explain how bitcoin can provide value without fiat can equally be used to argue for Steem (or indeed many altcoins). Bitcoin has two major advantages right now: 1) it's the main gateway for exchange to fiat and 2) more merchants will accept it than other crypto. But of these two advantages, I believe it still mostly comes down to 1) right now.
Hey @blocktrades, thanks for reading ").
Agreed, that was the point I was making, but with that statement, I meant it as you need a bridge to start. If everyone decided to adopt crypto tomorrow, and picked a few coins that we all used, then yes, you're right, it could work without fiat.
Any chance you can upvote the post, I'm trying to build my account with steemit.
Ok, you've received the official "blocktrades post promotion" :-) good luck with the repost
Thank you so much! I will remember this ").
Well, fiat money is worth something because you can use it to pay taxes.
not sure that is what i would call value. i do understand though.