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Real estate is likely the best storage of value there is. It's only distributed across governments though. When you own a piece of land you actually trust your
by comboy 8y ago
Real estate is likely the best storage of value there is. It's only distributed across governments though. When you own a piece of land you actually trust your government to protect your right to it.
Gold is fantastic. Apart from its physical properties, we all agreed to assign value to it and it's been working for thousands of years.
But wouldn't it be great to have gold in a digital form? Something easily divisible and transferable, yet as gold is, not dependent for its value on some 3rd party? Something that is truly yours not just IOU. Which can keep value.
Forget about Bitcoin, how would you envision something like this?
Apart from technological problems, we have a problem of initial trust and distribution. Please stop here and think for a moment, this is a hard and interesting problem. I'm not saying you can solve it with a few minutes of thinking but just after a few moments some things clarify.
Now imagine we do have it. We did it. Because it would be a cool future where we do have this digital gold. Is it a safe storage of value? What if some better digital gold 2.0 comes along? If people would prefer to move their wealth to it then the 1.0 would become less desirable, so its value should drop. But if it does, then it's not a good storage of value after all.
You can devise a system in which 1.0 tokens can be exchanged to 2.0 but then you cannot change the initial distribution.
If all that thinking is not enough, it is interesting to ponder impact of an actual perfect storage of value system on society. Wealth can be leveraged to generate more of it.
Not that it's something completely new, we had a few close enough matches throughout the history. That's what most wars are about. Although it's easier to go get something if you know where it is.