3 ms·
The key property of using gold as a store of value besides it being easily divisible, hard to counterfeit, etc is that there's plenty of other people in the wor
by thdxr 7y ago
The key property of using gold as a store of value besides it being easily divisible, hard to counterfeit, etc is that there's plenty of other people in the world willing to accept it. Popularity isn't an arbitrary property, it's a feature
- kerkeslager 7y agoThat's a circular argument. People accept it because it's valuable, it's valuable because people accept it?
- typest 7y agoIt’s weirdly circular, but it’s also correct. This is how many things with network effects work. Something is useful because others use it, which makes it more useful, which makes more people use it... In this case, you could also look up “coordinated Nash Equilibrium”, which can partially explain some of the behavior in bitcoin.
- kerkeslager 7y ago> It’s weirdly circular, but it’s also correct. This is how many things with network effects work. Something is useful because others use it, which makes it more useful, which makes more people use it... This can work for a little while, but without other factors to maintain the cycle it's just a fad. > In this case, you could also look up “coordinated Nash Equilibrium”, which can partially explain some of the behavior in bitcoin. You could also explain how coordinated Nash equilibrium relates to your point, instead of name-dropping complex topics (which you may not even understand). If you actually have a valid point here, you can explain it rather than expecting others to do your research for you.