There are a lot of shitcoins that are worthless because not enough people agreed they are valuable.
Do dollar bills have any intrinsic value ?
"Proof of work" answers none of them.
New cryptocurrencies appear all the time. This dillutes the cryptocurrency space. There's only so much capital to invest in any of them.
And the dollar has value, because they're backed up by a government. Not because the bills themselves have an intrinsic value.
And that's exactly why a lot of these new cryptocurrencies are worthless. The space is saturated and a lot of these new coins don't offer anything new. People don't agree on its value. I mentioned this.
> And the dollar has value, because they're backed up by a government. Not because the bills themselves have an intrinsic value.
Well crypto is backed by a huge network of miners, hence I mentioned proof of work.