This might be a dumb question, but how do you make change with bitcoin? I mean, do you trade in 1/2,oooth if you want to buy a nickel bag, or can you just buy in kilos? That's not true. Fiat currency has the value of the entity that fiated it. People put value on the fact that something like the US government will honor the dollar, and rightfully so.
The only intrinsic value a dollar has is how many calories you can get out of the cotton cloth it is manufactured out of. It has an agreed upon value of 1 US Dollar, tender for any goods and services where it is accepted. The moment people lose faith in the US Government to back that dollar, the minute it loses any value other than as a piece of cloth.
You contradict yourself. The intrinsic value of the us dollar is in the faith people have in the US Government, who issues and stand behind it, as you just said. If you want to understand better, look at what happens to the currency when the faith in the government wanes, such as in Zimbabwe. Remove the power of the gov't, you remove the value of the currency. In order for this to happen, the currency had to have value intrinic to it. I understand the allure of crypto currency, but it is basically a way to bypass governmental influence on the means of exchange. The problem is that you lose any value that influence, and accompanying support, provides. Pretending that backing was never there is misinformed. It's pretending that I'm trading the goods I sell for tiny pieces of paper, and I'm not. I'm trading my goods for the means of exchange that the US government, or another government, supports as the coin of the realm, and that has tremendous intrinsic value.
in·trin·sic inˈtrinzik,inˈtrinsik/ adjective belonging naturally; essential. There is nothing natural about a piece of paper with some ink on it being worth an agreed upon value. You drop a dufflebag full of cash onto a tribe that has never been approached in the Amazon and they will simply use the paper to start fires with, most likely.
It's not the paper. The paper is not the dollar, damnit. Why are you being intentionally dense? Does it not say something about your argument that you have to issue misleading bumper sticker philosophy to support it?
If us currency has no intrinsic value, send it to me in exchange for IP bucks. IP bucks also have no intrinsic value. I'll honor any exchange rate you wish.
If you have to have unanimous, consensual agreement that something has value in order to prescribe it any value, it's not intrinsic -- in fact, there's a word specifically for that. Extrinsic. It's extrinsic value: worth that has been assigned to an item based upon external factors.
The intrinsic value of the US dollar is the value of flammable material at a time when there is need for flammable material. The extrinsic value of the US dollar is the full faith and confidence of the US government.
There was a stock last week that changed their name to Long Island Blockchain (from Long Island Iced Tea). Their stock jumped like 400%. Trading algorithms. Someone gonna get fired.
I understand what he is saying, and this is still wrong. You, too, are confusing the slip of paper with the currency that it represents. It doesn't make any sense to say that a thing that has value because the US government says it has value but it only has value because the US government says it has value. THe government has deemed that this item is the means of exchange, and that makes the unit intrinsically valuable. I know that it will be accepted in exchange, which means it has extrinsic value, but the reason i know this is because it has been decreed that it will be; that is the intrinsic value. That is what bitcoin lacks. What do you fellas think does have intrinsic value? If you can't eat it, [uck fay] it, or kill somebody with it, I'm not sure anything does, and generally those things make poor means of exchange.
No, you are confusing intrinsic for extrinsic. Gold’s intrinsic value is its properties as a conductor, and malleable metal. Gold’s extrinsic value is that of what society makes it. The US dollar is not a natural thing; it is manufactured. It’s natural, ie: intrinisc value, is that of a fiberous material. It’s extrinsic value is what we make it. That’s why certain serial number pieces of the dollar have ZERO worth, as spendy paper. Because their extrinsic value has been retired.
The intrinisc value of steel, though manufactured, is its ability to make tools. The intrinisc value of wood is that it can be used to make tools, or fire.
The intrinisc value of soil is that it can be used to make a dam. I don’t have to eat, [uck fay] or kill any of those things.
The dollar is nothing BUT what the US government says it is. If you are defining "intrinsic" as "physical properties," then you are right. That, however, is the wrong way to define it. If you define it instead as the natural essence of ta thing, then the intrinsic value of a dollar--a thing that exists because the US gov't has deemed it as currency--then the intrinsic value of the dollar is the fact that the US gov't has deemed it currency. The external value is the fact that you will accept it from me for your goods and services, and you'll do that because of the intrinsic value listed, repeatedly, above.
Incorrect. Intrinisc has a definition, Norris has given it. I’ll give it: in·trin·sic inˈtrinzik,inˈtrinsik/Submit adjective adjective: intrinsic belonging naturally; essential There is no natural value to the US dollar. It has no value after the US government dissolves, beyond its ability to be a fibrous material. It has no value, currently, when stranded on a desert island, even with government intact. You are confusing intrinsic with something else.
