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The difference between gold and cryptocurrencies is that gold is something that doesn't go away when you stop believing in it. Simulated gold is not actual gol
by aaroninsf 9y ago
The difference between gold and cryptocurrencies is that gold is something that doesn't go away when you stop believing in it.
Simulated gold is not actual gold, in other words. They are under current conventions interchangeable, but the context that allows that is contingent.
- oculusthrift 9y agoactually if people started not viewing gold as a store of value but just as a raw material like aluminum it’s price would tank.
- PeterisP 9y agoThe price of gold could significantly decrease, that's for sure, but even purely as a material it still would be reasonably valuable, significantly more valuable than silver. It has a price floor; bitcoin does not.
- yashap 9y agoYeah, that’s pretty much my feeling too. Maybe one day crypto currencies will be useful for making purchases, but they certainly aren’t today, and I think it’s decenty likely they’re never used much in that capacity. If you just want to hold an asset, are they really worthwhile over physical assets? There are arguments both ways, but my gut feeling is no. I think the vast, vast majority of the reason for their rise in price is a combination of “the price is going up, I gotta get in now!”, and manipulation by large, unscrupulous investors. Basically, a tulip mania/pyramid scheme type phenomenon. Maybe I’ll be proven wrong, but I don’t see any really value/utility, and expect an absolutely massive collapse. I think there’s just enough “maybe it’ll be the new gold! Maybe it’ll be the new USD!” to fuel the hype, but mostly I think it’s only going up because it’s going up, which is really the strongest indicator of truly terrible bubble.
- cwkoss 9y agoIsn't the same true for fiat currencies or stocks?