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It's definitely not a Ponzi, but it's nice and easy to slap the label on it, so people do. It's not backed by a government, but neither is gold. It only has val

It's definitely not a Ponzi, but it's nice and easy to slap the label on it, so people do. It's not backed by a government, but neither is gold. It only has value because we attach value to it - there is no intrinsic value to a bitcoin. But that's just like many other things where the intrinsic value has little relationship to the 'value' we give it. And 'we' doesn't have to mean everybody - just the people who choose to attach value to it. So if most of the world ignores bitcoin but ten thousand stamp collectors decide it's the best way to shuffle money between them, it'll have value for those people. Similar to the stamps they'll be trading. What bitcoin is, is a "greater fool" asset. Because it has no intrinsic value, you're hoping that a greater fool than you will come and buy your bitcoin at some point in the future. In this way it's similar to investing in stamps, gold, art or 80's vintage shoes.

tobylane 15y ago
Nature backs gold, there is a limit and we love it. If you find a brick of gold in your great-grandfather's chest, he will have stored away something worth 5-20% of his yearly salary, but you could sell it for twice yours. If you stored your bitcoin wallet somewhere, left bitcoin, and came back when they had changed the algorithim to add more money, your money might be worth less (because there's more supply, not less demand which is all that can happen with gold).
- richardw 15y ago
  Platinum should be shooting the lights out, then. There's only about 130 tons of the stuff mined each year (6% of the gold mined), it has more uses than gold (which increase the demand and reduce the supply as it's used up over time) as 50% of it is used for industrial uses, and it's sexier than gold - ask your girlfriend/wife if she'd prefer a platinum or gold ring. So if you really want a long-term store and one that is comparatively undervalued to gold, choose platinum.

tobylane 15y ago

Nature backs gold, there is a limit and we love it. If you find a brick of gold in your great-grandfather's chest, he will have stored away something worth 5-20% of his yearly salary, but you could sell it for twice yours. If you stored your bitcoin wallet somewhere, left bitcoin, and came back when they had changed the algorithim to add more money, your money might be worth less (because there's more supply, not less demand which is all that can happen with gold).

richardw 15y ago
Platinum should be shooting the lights out, then. There's only about 130 tons of the stuff mined each year (6% of the gold mined), it has more uses than gold (which increase the demand and reduce the supply as it's used up over time) as 50% of it is used for industrial uses, and it's sexier than gold - ask your girlfriend/wife if she'd prefer a platinum or gold ring. So if you really want a long-term store and one that is comparatively undervalued to gold, choose platinum.