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Comment by penagwin | Hacker News Reader

Anything ("real" or digital or anything at all) can be assigned a value by anybody. This value is also self assigned - if you don't think a laptop is worth 700USD like the maker says it is, you might not want to buy it.

A US dollar bill is at the end of the day just a piece of paper - that is assigned a value (that constantly changes) by the market.

The real question is if the currency has any value to a substantial amount of people. Obviously currency is useless if only two people in the world can use it. However as BTC is now over 2000USD/coin and you can use many payment processors (including stripe), I'd be inclined to say that it does indeed have value - and a use; your assignment of value to BTC may be lower.

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> A US dollar bill is at the end of the day just a piece of paper - that is assigned a value (that constantly changes) by the market.

Ultimately, the U.S. dollar is backed by the U.S. Military. What is bitcoin backed with?

Ultimately, the U.S. dollar is backed by the U.S. Military

What does this even mean?

That if the US economy crashes and dollars become worthless, the military will plunder a few countries for resources to restore it?

I think he means that the USD is valid currency for all debts, public and private, and this law is enforced by the US gov't.

However stealing anything is illegal (in most countries).

A weakness to BTC could be that it's hard to enforce that...

- The US economy crashing isn't necessary for the military to be used to plunder other countries for resources. The rich and powerful interests in most american countries will coalesce around US interests or face direct or indirect coups until they do, creating a neocolonial system where the dollar is enriched through the resources of other nations.

- It means that more countries will keep USD as a major if not primary reserve currency.

- it also means that we can ensure that oil trade is denominated in USD, which also directly keeps the value of the dollar high.

- it means that we can create a special relationship with Saudi Arabia which allows some degree of control over global oil markets

- it means that we can e.g. devistate countries ideal for Iranian exports in order to prevent the development of competitive markets

What do you by saying USD is backed by the Military? I'm sure what you mean by that? I guess if another country owes the US money the military could "go and collect"? What about in country?

If you mean legally - I believe stealing anything in the US is illegal, this would include BTC. The effectiveness of the government to enforce punishment for stealing BTC could be a valid weakness.

I would say people.

Math

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