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Gold glitters like pyrite, but the latter is not scarce and therefore not valuable. For both gold and ETH, it is scarcity, in combination with the network effe
by drtillberg 9y ago
Gold glitters like pyrite, but the latter is not scarce and therefore not valuable. For both gold and ETH, it is scarcity, in combination with the network effect, that is critical.
For gold, scarcity is enforced by laws of nature, which encourages networks to treat it as valuable. For BTC, is there a similar constraint? I'm pretty sure the tokens can be reverse-transmutated by the software that counts it. This is true for all cryptocurrencies. Gold today and pyrite (or worse) tomorrow, which would make all of them unsuitable as long-term stores of value.