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But is it really any more or less intrinsic than gold? Gold can be used for jewelry and electronics, Bitcoin can be used for trustless transactions, and rapidly

But is it really any more or less intrinsic than gold? Gold can be used for jewelry and electronics, Bitcoin can be used for trustless transactions, and rapidly moving value across borders. Gold bullion represents the work it took to bring it out of the earth and refine it, Bitcoin represents the equipment and electricity it took to mine the next block. I at least can see that proof of work is closer to gold than proof of stake in this regard, you can quantify the value of obtaining the thing against the actual cost of obtaining it. However they do adjust the process to try and keep a steady rate, gold is of course something that mining more of varies greatly in terms of success based on the terrain and equipment and all that jazz.

physicsguy 6y ago
Gold is also highly conductive and so can be sold on for things other than jewellery; it’s useful for various industrial applications.
- luxuryballs 6y ago
  bingo that’s why I said jewelry and electronics, to give a sense of the breadth
tom_mellior 6y ago
> Gold can be used for jewelry And people will buy that jewelry because gold is fashionable. But if fashions shift, people might not want that gold anymore, tanking the "value". Doesn't sound very intrinsic to me. Compare to diamonds and their use in jewelry, which famously became popular and "valuable" only because De Beers found a good advertising company, not because people wanting diamond jewelry is somehow a universal human constant. > Gold bullion represents the work it took to bring it out of the earth and refine it That work justifies asking for a certain price. It doesn't guarantee that someone else will buy it off you at that price. In other words, that work doesn't give the gold value. > I at least can see that proof of work is closer to gold than proof of stake in this regard, you can quantify the value of obtaining the thing against the actual cost of obtaining it. You are arguing that gold that was mined less efficiently (thus at higher cost) is more valuable that gold that was mined more efficiently. This is not a convincing argument.
panarky 6y ago
> ... represents the work it took ... > ... represents the equipment and electricity it took ... Work does not give a thing value. You could hire 1000 workers with 1000 shovels to dig 1000 trenches 1000 meters long and then fill them all back up. That would represent a lot of work but it wouldn't be worth anything.
- nly 6y ago
  Yes, work just makes supply expensive, it doesn't create demand... unless you're a psycho and just want to own things that caused untold human suffering to produce.
- fragsworth 6y ago
  It is difficult for most people to wrap their heads around the fact that asset values are largely based on collective beliefs. Most people refuse to even accept it as a possibility
- Bancakes 6y ago
  By that logic, processors should cost $5 because they are molten sand and coins.

physicsguy 6y ago

Gold is also highly conductive and so can be sold on for things other than jewellery; it’s useful for various industrial applications.

luxuryballs 6y ago
bingo that’s why I said jewelry and electronics, to give a sense of the breadth

tom_mellior 6y ago

> Gold can be used for jewelry And people will buy that jewelry because gold is fashionable. But if fashions shift, people might not want that gold anymore, tanking the "value". Doesn't sound very intrinsic to me. Compare to diamonds and their use in jewelry, which famously became popular and "valuable" only because De Beers found a good advertising company, not because people wanting diamond jewelry is somehow a universal human constant. > Gold bullion represents the work it took to bring it out of the earth and refine it That work justifies asking for a certain price. It doesn't guarantee that someone else will buy it off you at that price. In other words, that work doesn't give the gold value. > I at least can see that proof of work is closer to gold than proof of stake in this regard, you can quantify the value of obtaining the thing against the actual cost of obtaining it. You are arguing that gold that was mined less efficiently (thus at higher cost) is more valuable that gold that was mined more efficiently. This is not a convincing argument.

panarky 6y ago

> ... represents the work it took ... > ... represents the equipment and electricity it took ... Work does not give a thing value. You could hire 1000 workers with 1000 shovels to dig 1000 trenches 1000 meters long and then fill them all back up. That would represent a lot of work but it wouldn't be worth anything.

nly 6y ago
Yes, work just makes supply expensive, it doesn't create demand... unless you're a psycho and just want to own things that caused untold human suffering to produce.
fragsworth 6y ago
It is difficult for most people to wrap their heads around the fact that asset values are largely based on collective beliefs. Most people refuse to even accept it as a possibility
Bancakes 6y ago
By that logic, processors should cost $5 because they are molten sand and coins.