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Gold has practical uses in industrial applications and electronics. It also has a floor, which is the cost to mine and ship. Gold has a minimum theoretical valu
by jorblumesea 9y ago
Gold has practical uses in industrial applications and electronics. It also has a floor, which is the cost to mine and ship. Gold has a minimum theoretical value although I'm unsure off the top of my head how low that might be.
Bitcoin's only value is what people will pay for it and has nothing backing it up.
It's not really comparable.
- yters 9y agoBitcoin is like a fiat currency without a fiat.
- jorblumesea 9y agoand without central banking, top tier economists, monetary tools for a bailout, a military and government... It's really not much like a fiat currency at all. The closest thing might be penny stocks.
- rhino369 9y agoBitcoin has a central bank, it just made its decision ahead of time without regard to supply and demand.
- IncRnd 9y agoBitcoin is unlike a currency in that it is difficult to have a transaction, today, using bitcoin. That will hopefully change, but that is how things are today.
- lostsock 9y agoHow is it difficult to have a transaction?
- IncRnd 9y agoI was referring to the time it takes to complete a bitcoin transaction in which confirmation lags significantly behind that of transactions in currencies around the world. https://blockchain.info/charts/avg-confirmation-time https://blockchain.info/charts/avg-confirmation-time https://blockchain.info/charts/median-confirmation-time https://blockchain.info/charts/median-confirmation-time
- derenrich 9y agoGold's price floor is not the cost of production. It's more like its industrial value. The speculative value is well out of line with its use value.