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You can’t store wealth stably in inanimate things. Wealth is always social in nature. Currencies are claims on the future production of people who want them. Th
by michael1999 4y ago
You can’t store wealth stably in inanimate things. Wealth is always social in nature. Currencies are claims on the future production of people who want them. Their future desires and capacities defines the value.
- effingwewt 4y agoGold. Other precious/rare metals. Property. You are speaking of collectibles, not wealth/currency.
- shanusmagnus 4y agoGold's value is other people's belief in it being worth something, so they will trade other things for it. Same with other rare metals. Property has something close to intrinsic value in that it provides shelter, but the value of property is only realizable if the social context allows it to be realized -- your claim to a house is only as good as the government's willingness to recognize that claim, and to protect it for you when it is challenged by others. Point is, the devastating attacks people think they're lobbing at bitcoin when they say that it's not 'backed' by anything are neither devastating, nor unique to bitcoin: unless you're talking about a commodity that people are consuming directly, nothing is backed by anything other than socially held belief. That's all money is, when you unwind it all the way. The important question is what is the relevant society, and what beliefs do they hold?
- effingwewt 4y agoYou are talking about a break down of society. In which values would indeed change drastically. Women of child bearing age, seeds, potable water, would instantly become precious. I'm talking about normal ass society. These may fluctuate, but there is a reason that since the beginning of human civilization we have currencies. Crypro is too volatile as a way to store wealth, that's why to this day the rich are hoarding gems and gold and property. I think all of it is ridiculous personally, even the dollar is no longer backed by gold. Point being you cant compare volatile, scammy, etc crypto to pretty much any normal value store. IMO.
- Ekaros 4y agoProperty isn't always good investment. How well Detroit and other communities where manufacturing went away are doing?
- michael1999 4y agoThe natural rate of return “saving” in metals is negative. Rust, security, and other storage costs are real, and inanimate things provide no return to carry them. And property is only valuable in the context of social uses. Else why is land so cheap in Detroit?
- SilasX 4y agoInanimate things like mutual fund shares?
- michael1999 4y agoMutual fund units are a claim on future production. They connect to the the animate. A gold coin can never pay you a dividend.
- SilasX 4y agoGreat — then you agree that your original standard, animacy, was not quite what you meant as the distinguishing factor. I hope you’re more precise about that in the future.