Simple answer crypto has nothing to back it up. The dollar is technically backed up by 330 million americans. American labor and goods is the american dollar, crypto has nothing. Literally just bits in the cloud. Essentially when other countries buy dollars they buy the labor/goods of the united states. Say what you will but american engineering and tooling is still world class. There is a reason why the chinese buy american/european designed steel mills and nuclear plants. So why would I trust something that inherently has nothing to back it up? If the dollar fails, the us government can sell its people (more or less). What does crypto have as a back up?
nothing backing it up
Very fucking wrong. PoW has energy expenditure backing it up. PoS has consensus backing it up. Time released blocks inflate a currency (scale) to match allotted amounts. Those who are more heavily invested get more returns. Both cases, chains are based on algorithmic computations. The value is backed by the work performed by the network. Just because you don't understand how the technical side works, it doesn't make it imaginary. The dollar isn't backed by shit. You're repeating what crypto is backed by and saying the dollar is backed by it and not crypto. You can't use both arguments.
Crypto is backed up by the consensus of a network or by mining equipment and amount of a chain mined. You do not understand these things. You're repeating what someone told you like an NPC and you think they're good arguments. They aren't.
Your argument is retarded. Crypto has no value because it is backed up by nothing. To say it has value because of time/bits spent is the same as arguing that a WOW account has value because you spent 9000 hours playing it and maxing out the character. Sure someone might buy it and give it inherent value, but its only as long as there are player playing the game. The moment the game loses popularity for something newer or shinier, the moment the house of cards fall down. The moment no one gives the max character value or the game any more play, it inherently loses value. There is a reason why there are 100's of cryptos out there and counting.
Why aren't max characters in WOW used as currency? Wouldn't it literally be the exact same as any crypto currency? Why is that only a handful of cryptos have value and the rest are dead in the water? Are they not also backed up by energy expenditure?
Just because there is energy expenditure doesn't mean it has value. If nuclear fusion becomes feasible and energy becomes free, crypto=worthless. If power goes out = worthless. If a government says that the currency is illegal = worthless. Guess what China just did numb nuts?
"People do not back currency. Peoples interests and wants give currency value." The dollar is tied to the American Economy. As long as the American economy has goods, services, labor etc that other people want it has value. The moment the us government says that no crypto exchange can occur to the us dollar, is the moment crypto dies. It has NO VALUE. China did it. Other countries will follow.
The question that was asked, is why trust the dollar,simple answer: because it is tied to the economy of the United States. The United States has goods, labor , etc that other countries and other people in the country want. Crypto has none of it. Energy expenditure or a finite amount of anything doesn't give it value. Why aren't trading cards used as a reserve currency? Precious metals are the same, they only hold value because they have a use. Crypto doesn't. I can use gold in an electronic device. Platinum in a cat. Crypto in a dildo machine?
If you're just going to repeat your original argument like you didn't read what I said clearly demonstrating your complete lack of personal research on the topic, I'm not going to keep trying to help you. Go back to Reddit and trade derivatives on webull.
People do not back currency. Peoples interests and wants give currency value.
Crypto (not all, but good ones) are backed by an absolute maximum amount of coins that can ever exist. Mathematical algorithms. The blockchain. Decentralization.
The dollar works the same exact way. Except there is no max to how much can be printed, the algorithms that run fiat markets are outdated at best. And there is no blockchain. And its owned by a non-American private entity (Centralized)
The blockchain is one of the greatest technological creations of our time. I would recommend people read about that before having opinions about how crypto works. Because if you don't understand the blockchain you will never understand crypto.
If the lights go out it all becomes worthless. Dollars, crypto, metals, etc... So the whole internet going out argument is just stupid. Nothing can happen to crypto that cant or already has happened to the dollar.
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