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This is a good mental model which I use from time to time to evaluate if something is money or not. > stocks, real-estates, and gold are all assets So what in
by vishnugupta 5y ago
This is a good mental model which I use from time to time to evaluate if something is money or not.
> stocks, real-estates, and gold are all assets
So what infers the quality of "asset" on these things? IMO it's their intrinsic use value. E.g., I could build a house to shelter me on a land, gold could be used to build electronics, stocks generate cash flow. Most of these assets are natural resources which humans need to lead a good life. So there is a natural demand for these resources regardless of whether they are used as currency or not.
Said this way, I just don't get what's the intrinsic use of a bitcoin? I totally get the intrinsic use of ETH; I could use it to execute a smart contract i.e., it's a currency to get some computation done. What is the natural demand driver for bitcoin? I just don't know.
- a_square_peg 5y agoYeah, I think the economics of Bitcoin is fascinating to watch. Been curious too what the market price of it would be if one took out the speculative aspect.