Quote:
Originally Posted by blackmonsters
Money in the U.S. bank is protected by the FDIC.
If the bank goes belly up, the FDIC pays me my money.
But your Bitcoin is not insured if/when your exchange goes down.
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That promise is good only to a certain extend and lets say it that way, if they need to cash in on that promise the extend is very quickly overextended. Fiat has no value because of the gov backing it, it has value because we trust in what the government is backing. If we/humans at large enough scale don't do that anymore (which may happen faster than you think), well then its worth nothing.
Money is a medium of exchange, anyone is free to assign anything as a medium of exchange as long as he finds another person who is willing to accept such medium. Now if you find someone who is willing to trust in bitcoin for its limited supply, robust technology or god knows whatever reason then its as good as finding someone who trusts in fiat because they believe senile government officials telling them to "trust"