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Gold does have real world applications, you can build stuff with it, but yes, if only using in electronics the price would crash. Real estate, depending one the
by mrweasel 4y ago
Gold does have real world applications, you can build stuff with it, but yes, if only using in electronics the price would crash. Real estate, depending one the type can generate money by being utilized, it doesn't need to be traded as such.
- ashwagary 4y ago>but yes, if only using in electronics >it doesn't need to be traded as such. Only a small percentage of sellers can convert an asset into the current dollar price in every market, regardless of where the underlying is used. This is true for every asset. Once supply outpaces demand, price moves down.
- tomputer 4y agoThis is exactly what makes Bitcoin a fantastic store of value. Bitcoin supersedes gold because compared to gold, it has no other use. If Bitcoin would be used as a store of value instead of gold, gold can be used for other material purposes for a lower price. The same goes for real estate. A house does not have to be an investment asset or store of value. If (institutional) investors would use Bitcoin instead of housing, it could make housing affordable again. Or at least result in more fair/realistic housing market instead of the propped up market from the last few years. Compared to gold and real estate, Bitcoin is a scarce asset that can easily be divided into small pieces. It has a liquid market and can be exchanged 24/7 anywhere in the world.