3 ms·

Your explanation doesn't make it clearer to me. It looks like you're missing a step between no basis in value and being a terrible savings vehicle. As a saver,

• JumpCrisscross 6y ago
  > As a saver, I don't care about the basis, I care that the money doesn't get too discounted with time, and I care about the risk Basis links the asset to other assets. That makes it less likely your asset will singularly get discounted relative to the broader economy, i.e. lose purchasing power. It is still exposed to systemic risk, but so is everything. Baseless assets, like diamonds and paintings and Bitcoin, derive their value solely from perceptions. That can be somewhat stable over the short term (up to 20 to 30 years). But it tends to fall apart between generations or through culture-changing crises. Put another way, investment assets are tied to productive uses in some way. Baseless assets are not.