Originally Posted by Stickfight
Originally Posted by Hastings
I am trying to understand how crypto currency has value, but it escapes me.
It has value because there is more demand for it than supply.
The price you see reported is generally the intersection of bids made by people wanting to buy BTC, and asks from people who want to sell it. The media typically picks one of the big exchanges and reports their number, but each exchange tracks that as well dependently as possible while keeping the door closed on arbitrage.
Yes sir, I understand that the fact that someone will pay for it gives something value. That is true of gold and silver. Their price is a good bit over the value of their usefulness and is mainly due to the limited supply and their incorruptibility. I'm guessing the ease of transport and universal acceptance makes for value also. This universal acceptance is what I would guess is the reason the U.S. outlawed a requirement of contracts payable in gold and demanded the acceptance of Federal Reserve Notes. Otherwise the paper money would never have been accepted. Could not the various governments of the world outlaw Bitcoin which you cannot bury in the back forty until the smoke clears?

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Jesus: "Take heed that no man deceive you."