alt Hacker News> It trades whatever number the parties exchanging it want it to have
I'd argue that that's the very definition of (economic) value. Someone puts a cost on a good/service, and someone who values and can satisfy the cost gets said good/service.
> It trades whatever number the parties exchanging it want it to have
I'd argue that that's the very definition of (economic) value. Someone puts a cost on a good/service, and someone who values and can satisfy the cost gets said good/service.
Sure it is, but that's not a way to store value (what economists specifically call store of value if you want to read more about it), which is a little different:
If you buy a €100k rolex, you probably can't be sure you can sell it for more than €100k anywhere at anytime in the future.
You probably can't even find a bank that would take that €100k rolex you just bought as collateral for €500k on a 30y mortgage.
That's why a €1m watch collection is never going to be worth €1m unless we're talking raw materials.