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But point a and b in you're assessment of gold's value are two of the most common arguments for crypto, specifically bitcoin, as well. a) crypto holders believ
by campbelltown 9y ago
But point a and b in you're assessment of gold's value are two of the most common arguments for crypto, specifically bitcoin, as well.
a) crypto holders believe that the value will hold because as more individuals use it to store their net worth, the harder it will become to
manipulate. ie. a history of price growth/eventual stabilization will occur in time.
b) its algorithmically-enforced scarcity, which many people believe is as valid as physically-enforced scarcity. So long as hash-based cryptography always works.
- JumpCrisscross 9y agoI think there's potential for cryptocurrencies to find homes in the modern financial landscape. But your counterpoint (a) is based on network effects. Distinguishing between short-term bubble behavior and long-term resilience can only be done after knocking the system with crises. Is there hope? Sure. Is it demonstrated? Absolutely not. There is one feature gold has over Bitcoin that cryptocurrencies cannot replicate: resilience across technological domains. Gold holds value without computers or electricity. Bitcoin does not. Gold, on the other hand, cannot travel at the speed of light. TL; DR each solves different systems of trade-offs.
- clarky07 9y agoIf we somehow get to a world without computers and electricity, I doubt gold has much value either. Water and bread though, those will be valuable.