At least the greenbacks have some intrinsic value. Bitcoins are pulled out of thin air by "mining" -- are they fucking kidding? And people ignore common sense and jump on the bandwagon because they see the price go up, are greedy and want to make a quick buck.
It's a fad that will be worthless before long. As with pyramid and MLM schemes, the only people getting rich are the ones who start it or get in early.
Don't forget the largest economy in the world.Any currency is only as valuable as what backs it. Ours is backed by the strongest military in the world and not much else. A bitcoin is backed by what?
Any widget only has value because people give it value. Even gold is subject to these feelings.
Any currency is simply a promise of payment in value or worth. Simple trading one item for the other where the value of each is agreeable to both parties. The only reason our particular currency exists is because the things you had that others wanted to trade you for became too cumbersome to carry around. Your bags of flour for one of my cows, etc.
Yeah in the past colored beads have been currency. It's all just a means to implement a barter system on a large scale.
It requires the mass delusion of everyone agreeing those beads have value. Most people don't have an actual industrial use for gold they are hoarding. To them it is just another currency subject to value swings as the people as a whole give it an emotional value. There is a finite amount on earth at this moment but more gets mined every day and new gold even arrives via meteorites.