EDIT: let me elaborate before you downvote: the value of a US dollar is not "intrinsic", it's the result of the strength of the US government and military, i.e. due to social factors that cause it to be accepted as a medium for exchange.
Crypto is no different: any crypto asset that has an exchange value (i.e. for which there's a liquid market) is backed by social proof of some kind, although likely on not nearly as large a scale or with as much force as the US military.
I highly doubt crypto is going to replace the dollar, because then it's internet communities vs the US government, and the US government has a lot more material power than internet communities, but there's no good reason why a cryptocurrency can't have some value as a legible unit of social proof, especially if the social relations involved have some material stakes (hence the DAO).
The idea that "money = intrinsic value" is a naive view of the world; Marx didn't believe that (he saw value as based on labor added), nor did Hayek, etc.
The answer to this question does not demonstrate that USD has any intrinsic value, it merely demonstrates that USD is the most valuable and well circulated of the currencies. These currencies still have zero intrinsic value.
Yes, fiat currencies don't have intrinsic value, they have network value as the primary unit of exchange.
A good investment does need intrinsic value, which BTC does not have. It's also not a feasible payment system.
The fact that cryptos are only referenced in USD terms proves that the only real use people have for them is a vehicle of speculation. Investment without intrinsic value = speculation
The second there's a gov backed USD stable coin, the argument for any crypto as a payment system evaporates.
> A good investment does need intrinsic value, which BTC does not have.
Agree, USD is also not a good investment but it is still widespread to have some USD.
> It's also not a feasible payment system.
Disagree, it is used (not widely) but without issue for payments all the time. It isn't a feasible payment system for every single transaction, but that is a ridiculous goal. There is no payment system that is feasible for every payment.
> The fact that cryptos are only referenced in USD terms proves that the only real use people have for them is a vehicle of speculation
No, it just proves that they haven't succeeded in taking over the incumbent fiat currencies. Stocks are also most commonly referenced in USD prices, and they are not merely vehicles of speculation.
Great to see all these idiot fueled bubbles popping