[2018-04-28] St. Louis Federal Reserve says Bitcoin is 'Like Regular Currency'

[Karartma1]

Is it real or not? 

The Federal Reserve Bank of St. Louis has provided some high-profile validation for a core premise of Bitcoin and other cryptocurrency. A blog post this week based on an earlier Fed research paper said that “bitcoin units have no intrinsic value” – but added that currencies “such as the U.S. dollar, the euro, and the Swiss france . . . have no intrinsic value either.”

Read more http://fortune.com/2018/04/28/st-louis-federal-reserve-says-bitcoin-is-like-regular-currency/

[dE_logics]

That's true. The only value inherent in the dollar is the government's power to tax, which gives it a revenue base to pay its debts. So as the U.S. dollar's value lies in its authority over people, you might say that Bitcoin's value lies in its lack of authority over anyone--that is, it can be trusted because it is not centrally controlled and has no inherent bias, unlike the Federal Reserve.

It's kind of refreshing to hear a Federal Reserve bank be so honest.

[jjacob]

The intrinsic value argument is bogus and we all know it. Forget about other fiat currencies, even in the case of gold its intrinsic value (for jewellery or industrial applications) is very low. People have stopped using the intrinsic value argument because they are on a very weak footing.