Quote:
Originally Posted by Jonsie
you should be aware it's highly speculative, pet rock analogy is right-on
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This is the best analogy I have heard. Bitcoin is something somebody created and it caught on as a way for black market entities to engage in financial transactions without being tracked by the government. I suppose you could track the transaction where a fiat currency is used to buy the bitcoin (unless you mine it yourself, which is cost prohibitive), but after the initial purchase I don't think Bitcoin transactions are trackable by the government. I could be wrong on this, but I don't think I am.
Bitcoin only has value as long as a trading partner is willing to accept it as a payment for goods or services. It has no intrinsic value.
It is basically a high tech alternative to owning gold bullion, except gold has industrial uses and has to be physically exchanged.