Comment: You people are killing me...

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You people are killing me...

Please stop embarrassing yourselves and calling bitcoin fiat.

Here is the definition of Fiat.
http://dictionary.reference.com/browse/fiat?s=t

Clearly no decree from government mandates Bitcoin has any value. It is the free market that has determined Bitcoins value. Therefore Bitcoin is not fiat.

What you are trying to say is that Bitcoin is not backed by anything tangible. That is true, but it is not Fiat.

So now the question arises; is it a problem that it is not backed by anything tangible?

I would argue the answer is no. Tulips are tangible, but that was insufficient for them to remain valuable.

Domain names, eg: google.com or money.com are not tangible but they have maintained/increased in value for 2 decades. So tangibility is neither sufficient or necessary to be a store of value.

So why has the market determined given value? Is the market retarded?

The market gives all things value that are both scarce and useful. It is as simple as that. Bitcoin is certainly both. It is scarce in that there will never be more than 21 million of them. and it is valuable for many reasons.
1) it allows for free and instant international transfer of wealth.
2) It is violence resistant.
3) In an age of bail-ins, it is a relatively secure form of wealth.

If you want to learn much more...
The best selling book on amazon on Bitcoin is
http://www.amazon.com/dp/B00CAX5OZQ/ref=as_li_tf_til?tag=suc...

It will be $3.99 well spent for many people in this thread.
(disclaimer - I wrote it.)

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