Quote:
Originally Posted by raymor
What is the value of a dollar based on? Not nothing, actually. Initially, the value was set by the dollar being actually made of gold or silver.
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Currency is a commodity, its value is determined by supply and demand. No different than oil or orange juice or gold. Linking a piece of paper to a piece of gold doesn't make it suddenly "not a commodity". It simply ties the value of one commodity to that of another.
There is no strong demand for bitcoins. No real practical use for bitcoins other than to amuse some nerds. That has to change for their value to stabilize and strengthen.