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Yes, gold is a very special case. Gold also has a very, very long history of being used as a global currency, which lends far more confidence in it than is pro
by Goladus 9y ago
Yes, gold is a very special case. Gold also has a very, very long history of being used as a global currency, which lends far more confidence in it than is probably warranted.
Bitcoin has not even 10 years of history as a currency, and most of that time the system was propped up by an inflation mechanism that will soon cease to exist (and is already mostly ineffective), and the rest has been fueled by speculative mania. Compared to gold, it is utterly unproven for the role.
There is no reason to think that Bitcoin is in any real position to replace gold in its role as a "store of value."
- moduspol 9y agoI'm not arguing it will. I'm arguing it can function as a store of value despite not being used to buy things, or having a secondary material usage.
- Goladus 9y agoYes, but nearly anything can function as a store of value by that standard. While it's true Bitcoin has name recognition and that is an advantage, it's not exactly a big advantage.