Why do people assign value to Bitcoins?

[Akka]

I can't pay taxes with it. I can't fund my credit card with it. Why do people value Bitcoins at $11 a piece?

Hehe, first post and probably your last?

Is it just me or do recently a lot of accounts pop up, crating on single thread and are then never seen again.

But just in case this is a real question:

Bitcoins provide the usability of cash, although you can instantly pay them in every wallet world wide.

This usability provides value.

The fact, that they can't be printed instantly by anyone (infation resistant) increases the value even more.

And then they are only a few of them + most of them are horded and not available on the open marked, causing a high price.

[God Almighty]

I can't pay taxes with it. I can't fund my credit card with it. Why do people value Bitcoins at $11 a piece?

Hehe, first post and probably your last?

Is it just me or do recently a lot of accounts pop up, crating on single thread and are then never seen again.

But just in case this is a real question:

Bitcoins provide the usability of cash, although you can instantly pay them in every wallet world wide.

This usability provides value.

The fact, that they can't be printed instantly by anyone (infation resistant) increases the value even more.

And then they are only a few of them + most of them are horded and not available on the open marked, causing a high price.

A US dollar is recognized as cash because people have to accept them for debts including taxes. People are forced to trade oil for them all around the world. Bitcoin has nothing like that so why is it even used as money? That is my question. But it seems since some geeks like it, others rely on that value when holding and using Bitcoins.

This is very different... almost religious...

[Jutarul]

I can't pay taxes with it. I can't fund my credit card with it. Why do people value Bitcoins at $11 a piece?

A US dollar is recognized as cash because people have to accept them for debts including taxes. People are forced to trade oil for them all around the world. Bitcoin has nothing like that so why is it even used as money? That is my question. But it seems since some geeks like it, others rely on that value when holding and using Bitcoins.
This is very different... almost religious...

1) Bitcoin removes the counterparty from the currency. You do not have to trust a government. You instead have to trust in mathematics and the stability of a self-regulated community. (as such there is still some trust required)
2) Bitcoins are cash like and are superior to cash on many levels (money on your bank account is not cash)

Here's some homework for you: try to do a cash-like transaction with someone in another country

[God Almighty]

I can't pay taxes with it. I can't fund my credit card with it. Why do people value Bitcoins at $11 a piece?

A US dollar is recognized as cash because people have to accept them for debts including taxes. People are forced to trade oil for them all around the world. Bitcoin has nothing like that so why is it even used as money? That is my question. But it seems since some geeks like it, others rely on that value when holding and using Bitcoins.
This is very different... almost religious...

1) Bitcoin removes the counterparty from the currency. You do not have to trust a government. You instead have to trust in mathematics and the stability of a self-regulated community. (as such there is still some trust required)
2) Bitcoins are cash like and are superior to cash on many levels (money on your bank account is not cash)

Here's some homework for you: try to do a cash-like transaction with someone in another country

Okay, it's easier to trade Bitcoins around the world but what makes them worth trading for? Why would I want a Bitcoin over a half ounce of silver?

[Jutarul]

Okay, it's easier to trade Bitcoins around the world but what makes them worth trading for? Why would I want a Bitcoin over a half ounce of silver?

No joke - do the homework. Try trading silver over larger distances. You really need to experience the difficulties with cash-like transactions before you can appreciate bitcoins.

Metals and paper cash are short distance exchange vehicles. Virtual currencies extent the interaction range of cash transactions to all people with internet connection.

[casascius]

Okay, it's easier to trade Bitcoins around the world but what makes them worth trading for? Why would I want a Bitcoin over a half ounce of silver?

Why is the half ounce of silver valuable to you?  You aren't going to put it in your teeth, and you probably don't manufacture mirrors or photographic film, so... it is probably valuable as nothing more than a means of trade.  Same with the bitcoin.

Why silver?  This is due to nothing more than a global consensus that it has all the properties needed for use as money.  Gold is chemically more stable, which makes it more valuable as money, but also is very difficult to use in small units, creating a demand that silver happens to fill.

[God Almighty]

So it's like a digital gold?

Interesting. Thanks.

[Richy_T]

Okay, it's easier to trade Bitcoins around the world but what makes them worth trading for? Why would I want a Bitcoin over a half ounce of silver?

You may not want bitcoin over half an ounce of silver. It depends what your requirements are.

[nobbynobbynoob]

So it's like a digital gold?

Interesting. Thanks.

That's how I like to think of it. It's scarce, relatively inflation-proof and is "mined". Of course, it's not so easy to ship a bar of gold across the world for less than a penny!

[firefop]

So it's like a digital gold?

Interesting. Thanks.

That's how I like to think of it. It's scarce, relatively inflation-proof and is "mined". Of course, it's not so easy to ship a bar of gold across the world for less than a penny!

That's really the thing that will eventually make bitcoin survive and prosper... if we can get it to be used by someone in a commercial capacity to move money around.

[drakahn]

I can't pay taxes with it. I can't fund my credit card with it. Why do people value Bitcoins at $11 a piece?

Hehe, first post and probably your last?

Is it just me or do recently a lot of accounts pop up, crating on single thread and are then never seen again.

But just in case this is a real question:

Bitcoins provide the usability of cash, although you can instantly pay them in every wallet world wide.

This usability provides value.

The fact, that they can't be printed instantly by anyone (infation resistant) increases the value even more.

And then they are only a few of them + most of them are horded and not available on the open marked, causing a high price.

A US dollar is recognized as cash because people have to accept them for debts including taxes. People are forced to trade oil for them all around the world. Bitcoin has nothing like that so why is it even used as money? That is my question. But it seems since some geeks like it, others rely on that value when holding and using Bitcoins.

This is very different... almost religious...

The lack of force is another thing I think gives bitcoins value, no one has to use bitcoins, we choose to

[Kazimir]

So it's like a digital gold?

Yes, but better.

Here's a list of advantages of Bitcoin, and some more, and some more.

[MrQuiggly]

I can't pay taxes with it. I can't fund my credit card with it.

Sure you can.

That's right. My understanding is that there is a way to fund a debit card - Bitcoin-Debit.com I think it is, and there may be other methods, if I am not mistaken.

Why do people value Bitcoins at $11 a piece?

For the same reason why people value gold at $1700 per ounce.

[BCB]

Try to buy product on SR with any other form of cash/currency/stored value with out first converting it to BTC.

Try transporting $20,000.00 of cash/gold/or silver on a plane to another country.

** pink-smuggled cigs would probably be much more valuable in male facility then Hooped cigs in a female facility (I would think).

[ElectricMucus]

Actually, no bitcoin is not comparable to gold because it lack inherent value. There also is some inherently valuable aspect to the blockchain mechanism because it can be used to sign the existing of arbitrary information, at a specific date, like a computer file, but it doesn't play much role currently.

People assign value to it as part of the consensus formed by the market. That is possible because you can trade them.

[BCB]

interesting TED talk on "perceived value"

http://www.getrichslowly.org/blog/2011/01/13/all-value-is-perceived-value/

[Kazimir]

Actually, no bitcoin is not comparable to gold because it lack inherent value.

Why would gold have "inherent value"?

[J-Norm]

I can't pay taxes with it. I can't fund my credit card with it. Why do people value Bitcoins at $11 a piece?

Silk Road.

[ElectricMucus]

Actually, no bitcoin is not comparable to gold because it lack inherent value.

Why would gold have "inherent value"?

Electronics, Gold contacts are pretty awesome. And since there isn't really a better material for that application it will have that property for a long time.
Also it's shiny and do not give you any skin-rash so many people use it as jewelry. You might want to discard that depending how you look at it, but still it's half the gold out there.

[bitcoinbear]

I can't pay taxes with it. I can't fund my credit card with it. Why do people value Bitcoins at $11 a piece?

Three things:

1: I would give somebody $11 for 1 btc because I think the btc will be worth more in the future than the $11.

2: I can give somebody the bitcoin and get $11 worth of value back. (Or better, depending on where you go. Recently purchased some books on BitMit.net for less than 1 USD worth of BTC, those same books would have cost me $32 on Amazon.com)

3: There is more to life than taxes. I rarely send any money to the government at tax time (my employer and government work together to take money out of my paycheck and then each year I have to ask for the extra back, last year I got about 10% of my income as a tax return).