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Your logic stumbles when you consider gold. "no one uses it" either to "buy things", and yet it is valueable and has been so for eons. Store of value is a very
by Erlich_Bachman 6y ago
Your logic stumbles when you consider gold. "no one uses it" either to "buy things", and yet it is valueable and has been so for eons. Store of value is a very important function in itself.
- deleted 6y ago[deleted]
- postingpals 6y agoThe gold standard was abandoned precisely because it was inferior. It was pretty useful up until early 20th century as a medium of exchange too. People used to use gold coins to buy things, didn't they?
- Erlich_Bachman 6y agoNow it's not, and yet it's still valueable.
- notreallytrue 6y agoHonest question: in 20 years would you prefer to own a 21 milionth of bitcoin (1 bitcoin) or 21 milionth of gold (~8kgs of gold)? Not thinking about the value of it, but of its future usefulness as value store and as mean of payment
- ZephyrBlu 6y agoBitcoin 100%, because of the optionality and network effects. I don't believe you can separate the value of Bitcoin and it's usefulness because the more valuable Bitcoin is, the more useful it becomes. The more people who hold Bitcoin, the more scarce it becomes and therefore the more valuable it becomes. In 20 years, Bitcoin could go to 0, or become a widely used currency and skyrocket in value. Once the number of Bitcoin holders reaches equilibrium then the value would remain stable, but we are definitely not at that point yet.
- notreallytrue 6y agoGold value will never go to zero though For the simple reason that it exist in the physical space and can't disappear, unless the laws that regulate our existence change, which is quite improbable Gold will also work and retain a value even if society suddenly shuts down and reset to a "sticks and stones" state Bitcoin advocates have this weird tendency to completely ignore decades of game theory That's why people don't trust them