Sure, but some systems are way more stable since they are established and have the general trust of a lot of people. And others simply don’t have that wide ranging trust and as such aren’t stable.
akshuallllyyyyyyyy, monetary value of anything is derivative to someone else’s willingness to purchase the item
Syndic@feddit.de 1 year ago
misterundercoat@lemmy.world 1 year ago
That’s why I trust money issued by a government. Because even if individual politicians are evil and useless, the money is still backed by bombs and bullets a huge amount of infrastructure and tangible assets.
Adderbox76@lemmy.ca 1 year ago
untrue.
Real currency is backed by assets. that used to be the “gold standard”, but has become more ephemeral since the end of the first world war.
A government issued currency is backed by that government’s infrastructure, taxes, tariffs, etc… basically how powerful that government is on the world stage.
in contrast, crypto is backed by nothing more than how persuasive the creator is. Heck, in one case, some techbro created a crypto currency, and convinced a bunch of people or would be stable because he was backing out with ANOTHER crypto currency he literally created for that only purpose.
And people FELL FOR IT!
It’s utter insanity.
ram@lemmy.ca 1 year ago
You can use this logic to explain away any other ponzi scheme too.
brsrklf@jlai.lu 1 year ago
It’s not really logic, and I don’t think it’s defending anything, it’s just the definition of monetary worth.
For better or for worse, stuff is always as valuable as people considers it to be. Which may be related to how useful that stuff is, but often is not.