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Would not gold have the superior aspect it has actual use behind its value? Obviously the store of value part pushes up price, but there is also a big need for
by Gustomaximus 3y ago
Would not gold have the superior aspect it has actual use behind its value?
Obviously the store of value part pushes up price, but there is also a big need for gold in electronics and jewellery etc. Bitcoin at the moment is largely speculation and has little use beyond that currently, though has potential to become an active currency of significance, we are yet to see that.
- gotorazor 3y agoThere is very little use for gold in electronics. In jewellry, yes. But that's only because people in developing world see their jewellry as a form of savings. Those are the same contries where the people don't buy jewellry lower than 18k. Nobody in North America or Europe knows how to get the fair value of gold in the crappy 14k necklaces. USD is useful because it is a meaning unit of exchange.
- roenxi 3y agoNot really; because the price of gold tends to the marginal cost to produce. If a marginal producer can generate a kilo of gold for $60k, then gold is worth around $60k/kilo. Its uses or lack thereof are not that important. If all the uses of gold went away magically, it'd be worth less for various reasons but still a similar order of magnitude.