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Gold has a actual use as a commodity, eg in electronics and other equipment, and derives a minimum value as such. So whilst how gold is used in trading circles
by layoric 7y ago
Gold has a actual use as a commodity, eg in electronics and other equipment, and derives a minimum value as such. So whilst how gold is used in trading circles might have similarities to BTC, this difference IMO makes them nothing alike.
- JohnJamesRambo 7y agoBitcoin has a just as relevant, or more so, actual use in buying drugs and frowned upon things on the internet, escaping government restrictions on money, etc.
- LanceH 7y agoGold has those same uses but at an international level and is generally approved of. The gold may never actually move, but ownership will transfer between countries.
- JohnJamesRambo 7y agoBut you have to use a middleman or intermediary. The genius of bitcoin was when Satoshi removed that and solved the double-spending problem in a decentralized way. >Bitcoin: A Peer-to-Peer Electronic Cash System
- ickelbawd 7y agoExcept that bitcoin relies on a whole network of middlemen to prove the validity of that transaction. Without miners you have no transaction.
- mc3 7y agoThe quantities used are usually very small though. Gold plated not made of gold. I don't think the use as a commodity drives or explains the price.
- jcranmer 7y agoThe primary use of gold, AIUI, is jewelry in India.