What is your opinion of bitcoin? It would seem that it does not exist in the true sense and does not serve other human beings. Investments only have value when other people place a value on them.
We’re getting a strong urge to start this answer by saying that nothing in our Ask the Rabbi column should be taken as investment advice and that past performance is no guarantee of future results. Now that we’ve got that out of the way, we can answer your question.
The point we would like to make is that bitcoin’s value, as you say, is based on people’s willingness to honor it. That is true for many things we call money. For example, United States savings bonds are “backed by the full faith and credit of the US Government.” If the government falls or become dishonorable, the bonds quickly become worthless. The service any form of monetary exchange provides is allowing people to function economically in a more sophisticated manner than basic bartering. But any government behaving immorally by inflating its currency in order to surreptitiously tax its citizens will quickly find its currency valueless.