So you are basically saying that bitcoin and every other cryptocurrency is useless and has no intrinsic value because it is not backed by 'law'?
But bitcoin real value is blockhain and its ability to be the best and the bigger information storing ledger on Earth - that doesn't count?
No, bitcoins are not useless and I didn't say that they are. Bitcoins are excellent placeholders for a currency, but they themselves are not a currency.
Currency gains its value from the credibility of the authority that issues said currency. Bitcoins are not issued, just like gold and silver are not issued. There is no "authority" behind currency derivatives, and the concept of currency value hinges on a mutual trust that 1 unit of currency has some agreed upon amount of buying power that is guaranteed.
The role that law plays sets the rules that determine what recourse is available to those who hold debt notes - i.e. currency. Do I have the right to sue, if yes, which court has the authority to hear the case and issue a judgment one way or the other? If I want to lend money, what set of laws will govern the terms of the contract? etc. To have this, you need an authority. There is no court of bitcoin, and even if there was, who would recognize their legal authority? I wouldn't, would you?
TBH Bitcoin is backed by Law.
Not exactly same law as the currency but still affected by law and backed up by Mathematics and logic. Everything is backed up by math.
If its backed up by math.. it works.
Right, but that is more about the integrity of bitcoin transactions than it is about the economic concepts.
But it also says that there is 'no such think as a decentralized currency' because there MUST be some central power behind it for monetary system to work. That is simply not true.
It might be true way back in time. And that is simply old way of thinking from the times before blockchain was invented. With blockchain as backbone of a network we don't need central authority.
But you do, without it, how will you know what 1 BTC is "worth" in terms of debt. If bitcoins were not being exchanged for USD, who will determine how much a product or service is worth in terms of bitcoins?
It will be impossible, because the transaction network of bitcoins is not an authority...it's just a vehicle. Yes, it provides a solid method to exchange bitcoins but it offers nothing in the way of establishing a value, because the definition of value can vary widely among people within a country, and especially among people living in different countries.
Your definitions and explanations are inconsistent and confused. In the end, it doesn't matter because your definition of a "currency" is your own and is not used by anyone else.
The term "currency" used casually refers to an item or object exchanged for goods and services. The legal definition, and concept of what a currency actually is falls under a different definition and that's what I'm discussing here.