4 ms·
By that logic, gold should be worthless. It isn't. Bitcoin will probably never be a currency equivalent to fiat, but it surely is a store of value in the long
by zed88 7y ago
By that logic, gold should be worthless. It isn't.
Bitcoin will probably never be a currency equivalent to fiat, but it surely is a store of value in the long term.
- baq 7y agoGold has practical, useful applications. Bitcoin is pretty much wishful thinking at best. I’m not sure if bitcoin is worth the CO2 emissions mining it created.
- Udik 7y ago> Gold has practical, useful applications. Yes. But they don't remotely justify its value, which has been established long before its technological applications.
- Toine 7y agoThey do, gold is rare and useful, supply and demand, that's all.
- Udik 7y agoBitcoin is rare too, and has supply and demand too, so what?
- pmiller2 7y agoYou left out “useful.”
- icebraining 7y agoI agree, gold is a bad example. Emerald is better.
- Toine 7y ago> By that logic, gold should be worthless. No, gold is not a currency (anymore). Gold is an asset. Gold is rare. Gold has real world use. Gold can be used for many things. Gold can be purchased with money to be worn or used. So no, by that logic, gold shouldn't be worthless at all. You're comparing two different things.
- xorcist 7y ago> No, gold is not a currency Most people would probably disagree on that. Gold even has an ISO-4217 currency designaton, XAU.
- thefounder 7y agoGold is almost worthless but people just don't want to accept that because governments still use it as a form of currency. Credit rating agencies are using gold reserves(among other things) so this could be a reason
- gerikson 7y agoThis is the second time today I’ve seen someone say that governments use good as a currency. What governments do this?
- thefounder 7y agoUsually countries without access to financial markets(i.e Syria, Iran, Venezuela). The credit rating of countries is based on their gold reserves as well so if you have gold you get cheaper loans. https://en.m.wikipedia.org/wiki/Gold_reserve https://en.m.wikipedia.org/wiki/Gold_reserve
- gerikson 7y ago[I now see I mispelled "gold" as "good" in my comment, my bad] As far as I know, none of those countries promises to redeem bearers of banknotes with an equivalent value in gold, which is what being on a gold standard means[1]. Plenty of central banks have gold reserves, that's basically a vestige from the past, but that's not the same as saying the currency is backed by gold. https://en.wikipedia.org/wiki/Gold_standard https://en.wikipedia.org/wiki/Gold_standard