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What is the value of physical currency, or a balance in a digital system? It's all supply and demand. When physical currency used to be backed by gold reserves
by imiric 3y ago
What is the value of physical currency, or a balance in a digital system? It's all supply and demand.
When physical currency used to be backed by gold reserves, then it could be argued that gold itself has material value, but nowadays it's all fairy dust[1].
[1]: https://www.youtube.com/watch?v=IiTfnpgNkmI https://www.youtube.com/watch?v=IiTfnpgNkmI
- hellojesus 3y agoAgreed that gold's value was largely increased it's demand as a reserve currency, but it does have stand alone value. Jewelry, conductivity, etc. all contribute to a baseline market for it. To me, store of value commodities are interesting when unpegged from a mainstream currency in that they provide no dividends. Their ownly roi is via speculation of the masses. Castles in the skies. That is where I have a hard time underatanding the value preposition of crypto.