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>90% of gold's price is investment/speculation, only 10% has real-world usage backing. I'm not sure I would even give it 10%, but yes, Bitcoin is a lot like go
by Clubber 9y ago
>90% of gold's price is investment/speculation, only 10% has real-world usage backing.
I'm not sure I would even give it 10%, but yes, Bitcoin is a lot like gold in that regard. It's not an overly useful metal and it's primary usefulness is to look pretty.
Apple/Adidas's stock price is based on their income statement plus speculation. I would guess the speculation could -/+ the dollar value by 20% or so, but the rest is solidly based on the business.
I don't personally discount intangibles, but they are tricky because they are harder to predict and can be fleeting. Since Bitcoin is mostly speculative (100%?), there's a lot of things that push it down and it's bottom would be effectively $0.
- shrimpx 9y agoBitcoins can be sent across the internet without middle men. As long as it maps to market value, Bitcoin is digital value transfer without middle men. Do you really believe this is valueless?
- Clubber 9y agoSo can text files. The distributed ledger algorithm has intrinsic value as an algorithm, but not so much the coins. If retailers and banks and other institutions continue to accept them, they do have some value, but that can also be fleeting. Until a major government backs it or something, it's value can go away in a poof.
- erikpukinskis 9y agoSure, sometimes a text file is the best way to send money over the internet, although I have to stretch to think of those scenarios. Bitcoin is the best way to send money in a lot of scenarios. Visa is the best in a lot of scenarios, Venmo is the best in a lot of scenarios, sometimes a check is best, but there are a lot of scenarios where that won’t work. Bitcoins use value comes from the number of those scenarios.