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With the methods the author is using, I think they would also be unable to value gold and other non-producing assets. Crypto (despite claims that it's a curren
by jacknews 5y ago
With the methods the author is using, I think they would also be unable to value gold and other non-producing assets.
Crypto (despite claims that it's a currency) is a digital "asset". Like gold, but without any real-world use like jewellery, coatings, etc, and with a far shorter history of being a store of value. The problem with valuing it then is due to assessing risk.
It could be trading at zero tomorrow, and there are plenty of plausible paths to that scenario.
- walkhour 5y agoCrypto could crash tomorrow but the value won't be zero, similar to gold it has intrinsic value. Some people value it because they think it's cool, because they think they're fighting the government, because it would've been historically important, ...
- headmelted 5y agoThat’s not what intrinsic means.
- bb88 5y agoCorrect. Because cryptocurrencies are created out of thin air, they can also disappear into thin air.
- throwaway6734 5y agoYou also can't take physical possession of it (unlike gold) as well. Crypto value is inherently tied to how secure they are and although they seem to be secure now, that might not actually be the case.