(01-21-2021, 04:37 PM)The Real Marty Wrote:

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

This is one of the times where you and I agree (for the most part).  Bitcoin has a limited supply because it is a "made up" currency.  There really is no tangible value to it (can't see it, touch it, etc.).  For the most part it's an "underground currency".  There are a few places that accept bitcoin, but nobody really mainstream.

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