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Bitcoin and others

The value of any currency (and that includes gold) depends on magic.

  • 1) Whether there is faith in the currency.
  • 2) Whether there is faith in the people who issue the currency and their ability to enforce value (through violence or expectation of violence). The value of currency is tied up with perceptions of power. If an issuer cannot generate the perception of power in others, then their currency will become worthless.
  • 3) Whether there is faith that other people value the currency.
  • 4) Whether there is demand for the currency – ie other people will accept it or exchange it for other currencies.
  • 5) How plentiful the currency is perceived to be.

    • All currency is subject to bubbles and over enthusiasms. However the more stable the issuer, the more it is likely to be valued.

    Currency is about politics, and politics is about persuasion and power, that is ritual and magic (and usually a bit of human sacrifice, because nothing shows power better than this).

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    This entry was posted on February 2, 2018 at 12:10 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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