I think perhaps in part that was the case. Not the case for the wildcat bank notes though. One problem with bitcoin is its fictionalized creation. This is just a "thing" crated by solving computer puzzles. What is that "thing". It is definitely a fad and people are trading it and that creates value. But what is the intrinsic value? I could be wrong but I do not see how some fictional asset with no intrinsic value can possibly be worth anything in the long run unless it is backed by a government as legal tender. The mob might like it but once they realize it is really worthless they will use some other less traceable asset. Kind of like the dotcom stocks of the late 1990s that traded at high prices and then disappeared.
This is the problem I have understanding it (or maybe I do understand it after all....). It is nothing. Numbers on a computer screen. Created by someone (who?) out of thin air. Yes, I know that a Federal Reserve note is no different, especially since most "money" is probably not even physical, but numbers on a screen, created from nothing by each bank that loans out a buck. Bitcoin doesn't really exist. And as has been stated, it competes with governments who want you to use their currency, not anyone else's. Frankly, I'm kind of shocked it has been allowed to continue for as long as it has.
Doesn't really matter to me, personally, just curiosity. I'm too poor to do much "investing" in anything.
