Thinking about the nature of Bitcoin is something that has really led me to thinking about the nature of money. It’s all about a society-wide consensus on a medium of exchange. The only reason Monopoly money doesn’t have value is because society has decided not to use it to represent value for real purchases. (But it has value in the game, because in that “world” everyone agrees to use it as money!)

Bitcoin has enough people agreeing that it has value for it to have a value, however, it’s an arbitrary value that changes daily. Interested to see what you have to say about how taxes factor into determining value. My guess was that stability is related to the size of the community that contributes to creating a consensus value. But I’m very much intrigued by this idea of the influence of taxes!