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The underlying asset has to have some intrinsic value for it to be a store of value. Gold is a value store because people can use it to make things, and histori
by rednerrus 6y ago
The underlying asset has to have some intrinsic value for it to be a store of value. Gold is a value store because people can use it to make things, and historically it's been one of the assets that women could own.
- scubbo 6y ago> The underlying asset has to have some intrinsic value for it to be a store of value That's an interesting claim, especially since you don't specify _stable_ store of value. Do you believe that trading cards are not a store of value? Or shares? The only inherent value of a trading card is that you can wipe your ass with it or set it on fire to stay warm, and yet people often pay hundreds of dollars (or more!) for them.
- bhupy 6y agoOne could argue that the "intrinsic value" of crypto is that it enables censorship resistant point-to-point data transfer (transactions). As long as some subset of people are using it for that purpose, it has value, even if it's a tiny minority. I imagine that of all the gold in the world, the vast majority of it is the "store of value" kind, and not the "computer chip ingredient" or "jewelry" kind.