Hacker News Reader

Would you mind elaborating please? I am not following your point.

I understand cash has this same issue. Assets do not - they provide an actual value to the physical world - which is what my point was in the above statement. A crypto t shirt can still provide value as a t shirt, regardless of the value of the coins it holds. I’ll admit it’s a reach, but just to illustrate the point.

View on HN

Money is important, it provides liquidity for trading. It is based on trust, so it makes sense that it can feel arbitrary, but you simply have to compare a world where you must barter assets directly between those who actually want that specific asset to realize how much of an improvement money is; meaning its not so arbitrary.

What gives money its value? Well it depends on the money. Fraud, violence, trust, in the case of Bitcoin: cryptography and game theory.

Bitcoin is the same value-add as cash because you can basically redeem it anywhere now, with few speedbumps if any due diligence is done.

This doesn’t really address the point. As I said above, yes cash and crypto have this same flaw, they are useless without the ability to trade it. What is a dollar good for? Wrapping a stick of gum? That was the point. True utility value.

Reply on news.ycombinator.com