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Only 10% of the price of gold is "tied down" to it's real world usage. The other 90% is psychological. So gold - 90% psychological Bitcoin - 100% psychologica
by 21 8y ago
Only 10% of the price of gold is "tied down" to it's real world usage. The other 90% is psychological.
So gold - 90% psychological
Bitcoin - 100% psychological
If you don't believe in psychological value, both are about as bad. I'm pretty sure no investment gold holder will be happy if gold price drops down to "tied down" value.
- MrEldritch 8y agoActually, 70% of the price of gold is tied down to its real world usage. I was surprised too - I actually thought it was only around 10% when I made that comment. But what I was referring to was that simply having some significant non-psychological value was key for giving people the stability and confidence to invest more value in it. In which case, the difference between 10% non-psychological value and 0% non-psychological value is something on the order of an infinity percent relative difference.