- Apr 19, 2007
Nobody dictates a value to Bitcoin. A collective global market does, much like Forex really.
Unlike Forex, governments and central banks can't control it. I'm going to use an example outside of Forex: if the central banks couldn't create (out of thin air) 250 ounces of paper silver for every real ounce of silver, you'd probably see the same types of run ups happening on it as well. Because commodities like that are only supposed to hedge inflation, which at the reported 2-3%, is either a blatant lie, or... as in the RE market, we are effected by foreign markets where shit is really broken. Otherwise why create so many paper contracts? In crypto, you cannot do this. Once the rules are in place, they remain in place, so long as the network agrees upon on them. Taking over a major crypto like Bitcoin, or heck... even Dogecoin, is extremely expensive and not guaranteed to work out for the attacking party's own benefit.
I at least had the foresight to see that Bitcoin wouldn't really be pegged against the USD, but against a non-existent free global currency.