Can someone explain how Cryptocurrency actually works?

[Anonymous No.9068119]

how the fuck does it have value, what determines its value

i feel like alot of it is like "we really don't know how this shit works, but it works"

[Anonymous No.9068127]

>>9068119
>what determines its value
Peoples' feelings

[Anonymous No.9068136]

As yourself, "what is the intrinsic value of a US dollar bill"?

A currency, even when backed by a government, doesn't really have any value in and of itself. Its value only exists in the fact that other people are willing to trade goods and services for it. The same thing applies to cryptocurrency. It originally gained some small trading value because of a speculation bubble, but that initial bubble was enough to give it legitimacy as an object that can be traded for goods and services (or traded for other forms of currency).

The value of the crypto currency is different from government backed currency because it is not controlled by a government. Governments, for example the United States, will frequently take steps to manipulate the value of their currency, by printing more or preventing production of new bills. Cryptocurrency is not controlled in this way so its value is entirely determined by what the "free market" determines with supply and demand. With cryptocurrency speculation also plays a large part in its value.

[Anonymous No.9068146]

>>9068119
It's like hats in TF2 basically.

[Anonymous No.9068265]

>>9068119
You probably don't have the attention span or intellect to understand even this dumbed-down explanation, but...

https://www.youtube.com/watch?v=bBC-nXj3Ng4

[Anonymous No.9068280]

>>9068136
This.

[Anonymous No.9068404]

>>9068119
Google "Pyramid scheme."