2 ms·
> Actual gold has physical storage costs aka a bank vault etc, those costs must be paid making gold negative sum. You can quantify those costs for the same mea
by dsacco 9y ago
> Actual gold has physical storage costs aka a bank vault etc, those costs must be paid making gold negative sum.
You can quantify those costs for the same measures of time that I keep talking about in this thread. As I keep saying: the cost of storing the asset is economically, demonstrably lower than the value of the asset for any meaningful, discrete timespan.
> PS: You can spend less on security but you risk having nothing of it's stolen. Given enough time and it will be.
By this logic, literally everything is negative sum according to thermodynamics. You’re not using a reasonable, accepted definition for this concept in the context of game theory.
We know the heat death of the universe is going to happen, so does that mean the aggregate activity of the market is negative sum? This isn’t just incorrect, it’s incoherent.
- Retric 9y agoNo, what you're missing is positive sum interactions are transformative. I want gasoline for my car even if the raw oil it comes from contains more energy that oil is less useful. Gold sitting in a vault stays gold sitting in a vault the outputs are identical in form and lower in amount. PS: A bank safety deposit box costs ~60$ a year store 1,000$ worth of gold for 20 years and you lost money unless it's worth more than twice as much inflation adjusted. Store 1,000,000$ worth of gold costs more than 60$ / month, but not 1000x more so it's not as pointless.