Where does the value of Crypto come from? Why do people buy?
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Crypto depends entirely on confidence due to it’s very nature as decentralised without government control. Someone selling things has to be confident that what they receive in payment can be traded.Someone holding crypto has to be confident it will retain value and/or be used to trade for goods or services.
Gold price reflects confidence, but it also happens that gold has some intrinsic value as a metal that resists corrosion, e.g. gold-flashed electrical connectors, and use for jewellery and decorative items.
Gov’t-backed fiat currency also relies on confidence, but behind that there’s assets, infrastructure, industry, services and tax payers able to give value.
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