(01-21-2021, 03:38 PM)StroudCrowd1 Wrote:

(01-21-2021, 03:11 PM)flsprtsgod Wrote: Truthfully there's not many places you can use them as currency yet because there's some unresolved tax issues associated with its use. Most of the activity in Bitcoin I've seen is related to investment only. I put in some money back at Thanksgiving and I made almost 60% on it over the next several weeks. Ever since it hit $40k though it pulled back and can't seem to get much momentum going again. I'll probably just keep what I have in there for now, it's way to volatile for serious investment.

So it's value is really driven off of demand and nothing that is actually tangible (i.e, a company's performance in the traditional stock market)?

Its value is driven by the fact that it has limited supply, sort of like gold, and fiat currencies are too easy for governments to inflate.  A lot of demand comes from places like Venezuela where inflation is raging, so some people have put their money in bitcoin to preserve its value.  Also, a lot of demand comes from people who want to keep their transactions out of sight of the government by avoiding the banking system.  

Personally, I don't trust it.  If one wants an inflation hedge, then the place to be is real estate, the stock market, and maybe precious metals.

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