>Things have value because other people want them. That's it. People want bitcoin, then it has value.
No, things have intrinsic value for an underlying reason. People don't just want random stuff out of the blue, there's always a reason. Look at it from first principles:
Gold: Rare, soft, lustrous metal that interacts with our genetic programming in some strange, emergent way that creates a strong desire for it most humans' psyche. No rational reason, a reason nonetheless - people covet it, and as a result of that demand plus sparse supply, it has become a status symbol throughout most of human history and across all cultures that had access to it (Western, Mid Eastern, Far Eastern, South American). Also, better conductor than copper for some industrial uses.
Money: Utility + Fiat. It's much easier to store your wealth in coins, bills, or bits in a bank computer than in cows, lumber, corn, or iron. Also much easier to transact exact amounts than in cows, lumber, corn, iron. And, doesn't die, rot, or go bad over time (inflation jokes notwithstanding). That convenience is desired, hence has value, which drives demand for it. There are also some things that only money can buy, or pay for - taxes, oil, etc. Everyone is required to have money for such things, hence demand for money is increased.
Bitcoin: Solved the problem of trust in unregulated, no-central-authority, P2P transactions, eliminating the middle man, enabling people to save money on direct transactions while sufficiently mitigating the fear of fraud that would otherwise sink the whole endeavor (and has in past attempts). That utility = value = demand.
Things that have value and demand, have it for a reason. It's not just b/c people randomly decide it does.
That Greenspan can't see this merely suggests he hasn't spent much time trying to grok bitcoin. Didn't read the source code, didn't install it and play with it to learn how it works, doesn't read any discussion of it at bitcointalk or the btc blogs or anything. He's applying old world thinking to a new world of cryptocurrency, and hasn't adjusted yet.
No, things have intrinsic value for an underlying reason. People don't just want random stuff out of the blue, there's always a reason. Look at it from first principles:
Gold: Rare, soft, lustrous metal that interacts with our genetic programming in some strange, emergent way that creates a strong desire for it most humans' psyche. No rational reason, a reason nonetheless - people covet it, and as a result of that demand plus sparse supply, it has become a status symbol throughout most of human history and across all cultures that had access to it (Western, Mid Eastern, Far Eastern, South American). Also, better conductor than copper for some industrial uses.
Money: Utility + Fiat. It's much easier to store your wealth in coins, bills, or bits in a bank computer than in cows, lumber, corn, or iron. Also much easier to transact exact amounts than in cows, lumber, corn, iron. And, doesn't die, rot, or go bad over time (inflation jokes notwithstanding). That convenience is desired, hence has value, which drives demand for it. There are also some things that only money can buy, or pay for - taxes, oil, etc. Everyone is required to have money for such things, hence demand for money is increased.
Bitcoin: Solved the problem of trust in unregulated, no-central-authority, P2P transactions, eliminating the middle man, enabling people to save money on direct transactions while sufficiently mitigating the fear of fraud that would otherwise sink the whole endeavor (and has in past attempts). That utility = value = demand.
Things that have value and demand, have it for a reason. It's not just b/c people randomly decide it does.
That Greenspan can't see this merely suggests he hasn't spent much time trying to grok bitcoin. Didn't read the source code, didn't install it and play with it to learn how it works, doesn't read any discussion of it at bitcointalk or the btc blogs or anything. He's applying old world thinking to a new world of cryptocurrency, and hasn't adjusted yet.