4 ms·
What am I falsely equating? I don't think that the store of value argument is absurd, even with real world assets like gold their value is really just socially
by jf- 8y ago
What am I falsely equating? I don't think that the store of value argument is absurd, even with real world assets like gold their value is really just socially constructed. I don't see why it couldn't in principle be the same for bitcoin, it just needs to be the biggest cryptocurrency and concrete the idea of it's own value in people's minds for a long enough time, until they take it for granted. Whether that actually will happen I don't think anyone can say. I think it's a mistake to assume that the value here has to do with the technology, e.g. the "best" cryptocurrency must win. It's likely just long-term momentum.
- tptacek 8y agoThe arguments suggesting Bitcoin has an intrinsic value of $0 have rational, evidence-based premises, like the notion that Bitcoin is technologically inferior to some of its competitors and the lack of its use as a medium of exchange. You can't generally say that about the arguments in favor of Bitcoin, though I'm happy to hear counterexamples. The "store of value" argument doesn't mean anything. Beanie Babies, tulip bulbs, and Hummel Figurines are also "stores of value".
- jf- 8y agoArtworks, antiques, gemstones. None of these are of any practical value, yet they hold value. You’re over systematising and not getting it. Value isn’t inherently rational. Also, what was the false equivalence?
- tptacek 8y agoTry this: being a store of value is a necessary, but not sufficient, condition for Bitcoin's viability.
- jf- 8y agoTry this: why?
- hueving 8y agoBecause lots of things were stores of value that aren't anymore. Can I interest you in a share of Bear Stearns?
- jf- 8y agoAnd lots of other things that were stores of value still are. Anyway I’m done with this, I don’t even have a horse in this race.
- arcticbull 8y agoCan I interest you in dead horse coin? It’s a new coin store of value that I just came up with, get in on the ICO before it’s too late!!
- tptacek 8y agoBecause otherwise your claim for Bitcoin's ability to store value is circular. Bitcoin has value because it's supposedly a viable tool for commerce. But it's not currently useful as a medium of exchange, and it competes with systems that are far better than it.