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That is not what intrinsic value means. Gold has value in electronics and jewelry (people will always value gold for jewelry and other ornamental objects, have
by EpicEng 9y ago
That is not what intrinsic value means. Gold has value in electronics and jewelry (people will always value gold for jewelry and other ornamental objects, have since its discovery). You cannot just pedantically re-define the economic meaning of the term; the rest of the world disagrees with you.
- ThomPete 9y agoBefore electronics gold had two types of usages. Jewelry and store of value. Before a monetary system gold had some value as jewelry, before the ability to create jewelry or ornamental objects it had no value. In other words the "intrinsic value" is contextual and not objective. Intrinsic value means the actual value but the only way to determine the actual value is to see what people will pay for it in an exchange. In other words the market determines the value of gold based on a set of assumptions. These assumptions can change in the future. Bitcoin is also valued by the market based on a set of assumptions. The world doesn't disagree with parent, in fact it agrees with him and bitcoin is the proof of this. You can't both have your cake and eat it. Either gold and bitcoin have intrinsic value by the economic definition and the market determines what that is or neither of them have.