As I understand it, bitcoin is a fiat currency. The Lord declaring the worth of this currency is the horde. Bitcoin is worth whatever people -- the horde -- decides at any one point.
As I understand it bitcoin is not removing the fiat part of our current currency; only that the Lords declaring the fiat worth of a bitcoin are the mass of people participating. As I understand it, a bitcoin is more comparable to a stock, which is so often traded, not by the company's worth and prospects, but by the anticipation of folks who buy stocks.
In other words, a bitcoin is valued according to how the mass of people participating value a bitcoin's ability to procure goods tomorrow or the next day. It's value beyond the dollar or any other fiat currency is that the mass of participating people, rather than a government entity, decide it's worth.
My question: what happens when the mass of participating people are largely bought out by the power-play people? Isn't that what happened with the Dollar? How does bitcoin protect itself from the same forces that brought the Dollar under subjugation?
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