Bitcoin is not backed by any physical commodity like gold or oil. Nor are they backed by any government, bank or corporation.  This raises the obvious question: why do they have any value at all?

Unlike stocks, bonds, real estate, or even commodities, bitcoins cannot be valued using standard financial analysis, or by demand for their use in the manufacture of other goods.

Bitcoin falls into an entirely different category of goods, known as monetary goods, whose value is set subjectively. In other words, each market participant values the good based on their opinion of how useful it serves as money, and how much other people will value it. To understand the nature of monetary goods, we need to explore the historical origins of money, the problems of money and the crisis in the current monetary system.

Watch this presentation about what money is, why it’s so useful and how Bitcoin offers a revolutionary leap forward in monetary technology and our governments relationship to money: