Originally Posted by
dale2T
Dogecoin is certainly a promising cryptocurrency, but bitcoin always attracts more attention to itself. Ivan Andriyenko described it well in his Twitter account -
https://twitter.com/AndrienkoIvanTU .
What is Bitcoin, or any of the cryptocurrencies, based on?
Do they have the backing of any sovereign country? Do they have a central banking system?
In short, what is the reality basis of their value, or even existence?
Can I buy a car with them? A house? Or must I first convert them to a currency backed by a nation state before purchasing?
When their values rise, is it due to an increased wealth of the nation, or is extractive from the productive aspect of the economy?
I am curious as I have not made any effort to really understand this phenomena, but it does leave me a bit puzzled. It appears to me to be very ephemeral, but that may be due to my ignorance of what they are based upon.