3 ms·

I think the comparison to gold does make more sense than to Fiat. Fiat has inherent value in that you can buy all kinds of goods with it. Crypto so far has hard

I think the comparison to gold does make more sense than to Fiat. Fiat has inherent value in that you can buy all kinds of goods with it. Crypto so far has hardly another use than to trade against Fiat, which atm. is similar to gold (which does have industrial applications but its price would also collapse if all the reserves got dumped). This may change in the future, albeit probably not with BTC given its tech stack and the strange philosophy of the core devs.

imaginenore 9y ago
Do you realize Bitcoin is accepted in orders of magnitude more places (as in physical stores) than gold as a direct method of payment? And then Bitcoin is accepted in tens (maybe hundreds) of thousands of online stores. Also only something like 10% of gold is used industrially, the rest is regular hoarding. And Bitcoin has other uses as well. But even if you ignore all that, you still can't answer what the fundamental value of 1kg of gold is - it's value is determined by the supply/demand, and has a lower limit, which is it's mining cost, which also changes all the time due to depletion, fuel costs, technological advanvements, land costs, etc.