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View Diary: Janet Yellen: Fed Has No Authority To Regulate Bitcoin (31 comments)

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  •  All money currently in the world, including (0+ / 0-)

    bitcoin, is based on people trust that it has value.
    Traditional currencies, as backed by government, at least have a guarantee that you can "purchase" services from government with currency backed by that government (in short, say for US Government, you're guaranteed that if you have US dollars, they'll accept that US dollar to perform services for you).
    Bitcoin doesn't have anything standing behind it, but it technically doesn't need to as long as everyone using it agree to offer their service at a consistent price.

    There's a good, interesting video behind how Bitcoin work. Whether you view Bitcoin as a valid alternative currency or not, it's an interesting video on how the protocol work to prevent counterfeits.
    https://www.youtube.com/...

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