Bubblesofearth wrote:The value of the legal currency of a country is determined by the present and perceived future worth of that country. This will be a combination of factors such as GDP and trade balance. Money printing does not increase the total value of a country, it simply reduces the value of each unit of currency.
BTC is not backed by anything other than peoples perception of what someone else might be prepared to pay in the future or vague notions about its role in some 'ideal currency' fantasy World.
BoE
Ignoring the phrasing I would agree with your BTC statement.
The other? Presumably that's why the currency of countries like the DMC, Bolivia and Venezuela are so strong. After all such countries have assets with large values.
Presumably the "resource curse" just exists in a fantasy world like other forms of magic.
https://en.wikipedia.org/wiki/Resource_curse
BTW, you did note that both your statements claim to rely upon perception didn't you? Possibly it's perception that explains the weakness of some state currencies.
To be fair I did ask about the £ and $, mostly to draw your attention to the fact that you missed the fact that they are not the same. However how are the $, £ and € perceived. What are we to think about the money printing? Is cash in the bank today worth what it was yesterday and if not why?
This thread is actually about the Crypto crash, rather than a given crypto currency, so we really should be asking those sort of questions about crypto. Strangely if we do, you find very similar answers. Fractional reserves and money printing in the crypto community. Something that isn't possible with self custody of BTC.