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I agree that bitcoin has exactly one of the properties that makes gold valuable. It lacks the others though: you can actually use gold for a wide range of appli

I agree that bitcoin has exactly one of the properties that makes gold valuable. It lacks the others though: you can actually use gold for a wide range of applications, from electrical to cosmetical, and it's rarity actually makes it even more useful as decoration, as it becomes a brag (look how much expensive gold I can afford). You can't build electrical circuits from bitcoin, nor can you wear them as a necklace(I guess you could print your keys on a shirt or something, but then they wouldn't be yours for very long) Scarcity alone isn't enough, you need a use for them too..

derangedHorse 5y ago
I don't believe utility is the driving force of gold as a store of value and if anything I would say it competes with it. I can assure you that most of the gold reserves in the world aren't holding gold with the future intent of having its value tied to its usage in circuits or beauty products, they're using it as a store of value. Being a store of value has utility in itself so again I implore you to look at arguments from someone who has studied Bitcoin a lot more extensively than I have and can give more hard data and context to the usage of similar commodities for comparison (i.e. the author of The Bitcoin Standard)
Valakas_ 5y ago
I used to think like that. Except most of the value of gold comes exactly from the same mindset it puts value on BTC and not on those properties you describe. While gold does have some interesting properties in no way would that explain a 10 trillion dollar market cap, and the price of 55 000 $/kg, sorry. It's just not that much better and rarer than other competitor materials. If comparing by properties alone, there are materials that should then be more expensive. For example Platinum is almost half of its price, and yet way rarer, and it's properties more useful.

derangedHorse 5y ago

I don't believe utility is the driving force of gold as a store of value and if anything I would say it competes with it. I can assure you that most of the gold reserves in the world aren't holding gold with the future intent of having its value tied to its usage in circuits or beauty products, they're using it as a store of value. Being a store of value has utility in itself so again I implore you to look at arguments from someone who has studied Bitcoin a lot more extensively than I have and can give more hard data and context to the usage of similar commodities for comparison (i.e. the author of The Bitcoin Standard)

Valakas_ 5y ago

I used to think like that. Except most of the value of gold comes exactly from the same mindset it puts value on BTC and not on those properties you describe. While gold does have some interesting properties in no way would that explain a 10 trillion dollar market cap, and the price of 55 000 $/kg, sorry. It's just not that much better and rarer than other competitor materials. If comparing by properties alone, there are materials that should then be more expensive. For example Platinum is almost half of its price, and yet way rarer, and it's properties more useful.